By Louis Ibah


There were strong indications yesterday that more than 1,500 of Arik Airline’s estimated 2,000 workforce may be retrenched this month as new management’s cost-saving measures to keep the airline alive.

Arik Air has about 2,000 workers spread across its local and foreign operations, while it operated a fleet of 28 aircraft at optimal capacity, which enabled it to generate enough revenue to meet its over N1 billion wage bill.

But reliable insider sources told Daily Sun yesterday that the airline currently under the Asset Management Corporation of Nigeria (AMCON) receivership is now operating with only eight functional aircraft in its fleet which makes retain its 2,000 workforce uneconomical.

Daily Sun learnt that the company’s expatriate staff may be the first to be disengaged, especially with the suspension of flights on international routes. It was further gathered that some of the expatriate pilots have on their own left the country, while several indigenous pilots and cabin crew are also reported to be experiencing some form of redundancy, with the scaling down of the airline’s operations.

“With a drastic reduction of fleet from 28 to eight as well as reduction in scheduled flights from 120 to an average of 18 flights daily, there are strong indications that Arik Air would retrench most of its workers, as its revenue continues to dwindle and the number of air worthy airplanes dwindles,” the source said.

“That is the only way to cut down the overhead and keep the airline alive. But with a current monthly revenue of N1.5 billion, which is not enough to meet operating costs, offset aircraft insurance bills or pay its creditors, staff retrenchment may happen any time within the first quarter of this year. “The tragedy of Aero Contractors was the inability of AMCON to sack its over-bloated workforce even when fleet had depleted from 12 to just three. The same mistake can’t happen with Arik,” the source, a top official of an airline who wouldn’t want to be named, said.

Meanwhile Media Consultant to Arik Air, Mr. Simon Tumba, has, however, refuted the alleged planned mass sack at the company saying there were plans to lay off workers. According to AMCON, what Arik Air requires to regain its full capabilities was an injection of about N10 billion.

But aside the challenges of fleet depletion and reduction in daily flight frequencies, Arik Air is also grappling with the problem of low passenger patronage. The recent takeover of the airline by AMCON has created some fear in most of its frequent flyers who mistook the events as an indication that the airline is no longer safe.

lalasticlala

malware:
I never for once considered piloting a job worth dying for cos no matter how skilled a pilot is, he cannot buy his own personal plane and be operating it. He must be hired by an established company and that makes him a dependent driver.

jaywhoco:
frightening...so you he cannot even do plane 'taxi' service?

veekid:
Pple wey don lose job under this useless administration no be small count o

chloedogie:


Before you shoot down this administration that we are all praying God to help, let me tell you something. Some sensitive documents(large) were usually bn sent to me from Lagos through Aero airlines. Those docs will be properly documented at the front desk, with waybill numbers given but when I go to the airport(ABUJA) to pick them up, I will discover the waybill given us never existed. I will be asked to go to one back gate and meet some hard looking guys to collect my items. Deep down, I knew it was 100% illegal. Aero shut down last year and we switched to Arik. Their staff too were doing the same thing and I can remember telling one of their staff this. ''If AERO sacked staff were given another opportunity, do you think they will still practice ds illegal things that kills the company?'' Not up to 5 months after I spoke with him, the company went down. Nigerian employees need a better orientation about the govt, companies or organizations they work for. We are not content with our salaries and trying to short-change the company puts your own job in jeopardy in the nearest future. Imagine millions those airlines lost to illegal practices by the staff. Millions of naira not remitted into the company's account and yet when the company goes down, we all rush to the door of the government shouting foul play.

Arik airline once swapped my MD's first class seat for one unknown senator's economy seat last year because they were given maybe 10k tip to do so. I can remember my MD telling the Arik people that whoever the senator is and no matter how large his extended family is, he can feed them for the next 10 years( him bn a billionaire). My MD had to wait till the next day to fly his usual business class. January this year, he with the company switched to airpeace. Ask me if they have not finished spending the 10k given them. Now they face sack. Government has its own blame too but majority of the blame goes to the so called owners and staff of these companies.

Have a good weekend bro and let's keep praying for this nation. E GO BETTER ONE DAY LAGBARA OLORUN. CHEERS.