UPDATE | Aero suspends operation due to economic situation

These are not good times for Nigeria as a nation, OluFamous.Com observed. Where did we get it wrong? Our economy is officially in recession, companies are sacking or shutting down. Sigh!

Aero Contractors Airlines, Nigeria's second largest commercial carrier has announced the suspension of its scheduled services beginning from tomorrow Thursday September 1, 2016.

Aero said this “business decision”, which is a result of the current economic situation in the country, had forced some other airlines to suspend operations or pull out of Nigeria.

In a statement signed by the carrier’s management on Wednesday, the management of the carrier said the airline had faced grave challenges in the past six months which impacted its business and by extension the scheduled services operations.

These factors, according to Aero, are both internal and external environmental factors that have made it difficult for it to continue its scheduled services.

It stated that during the period in review, Aero witnessed epileptic operations and services to the external public that were caused by non-alignment of fundamental issue of the business, which in some cases had been frustrating and embarrassing to all parties including staff, customers and indeed all stakeholders.

As part of its resolve to ensure the airline survived unlike most other carriers that experienced short life span in the country, AMCON had appointed Mr. Adeniyi Adegbomire SAN as Receiver Manager in February 6, 2016, with the aim of turning the airline around.

Since AMCON’s intervention in Aero Contractors in 2011, it had provided support for the airline to meet working capital requirements and fleet expansion.

These were to ensure the airline remains a going concern providing services to various clients and the general public.

But the airline noted that unfortunately, the operating environment within and outside the Aero had hindered any possible progress especially in the last six months when the naira depreciated against the dollar thus making it impossible for the airline to achieve its operational targets.

It started that with these realities coupled with protracted engagements with all relevant stakeholders, the management strenuously reviewed and assessed options and opportunities on ensuring viability, safety and sustainability of operations during the period with a lot of sacrifices.

The airline said, “The impact of the external environment has been very harsh on our operational performance, hence management decision to suspend scheduled services operations indefinitely effective September 1, 2016, pending when the external opportunities and a robust sustainable and viable plan is in place for Aero Contractors to recommence its scheduled services."

“The implication of the suspension of scheduled services operations extends to all staffs directly and indirectly involved in providing services as they are effectively to proceed on indefinite leave of absence during the period of non-services.

It added, “We are aware of the impact this will have on our staff and our highly esteemed customers, hence we have initiated moves to ensure that we are able to return back to operations within the shortest possible time, offering reliable, safe and secure operations, which the airline is known for.”

This is serious!