₦airaland Forum

Bolaji26:
Congratulations.

E be like say i go start saving money now so I fit invest into air transportation too

Fatbam003:
I vividly remember boarding this airline from Lagos to Abuja the flight schedule was postponed 4 times . Fight broke out and customers were livid when it was shifted for the fifth time.. 50 percent Deduction was later given as compensation. No be Gentlemen dey board plan sometimes ooh

Hezmatosky:
Must you write your name? Air peace never do?

sheguy:
This man just keep making Nigeria proud. I will fly air peace this december when coming home.

LagBlogger:
Na so Arik take start.

So so new aircraft till Amcon took over.

ibro360:
If I buy plane I go write My name and My Village name

tshtsh:
As a business man I want to believe he studied the arik situation and must have learnt not to repeat the same mistakes. In my own opinion arik went bankrupt for the following reasons :

1. High cost of operation. The airline had a large workforce of expatriates which cost them millions of dollars in salaries and benefits.
2. Use of wrong aircrafts: Boeing and airbus are expensive aircrafts compared to bombadier and embraer. For short routes such as Lagos to port harcourt with passengers paying 30k - 40k boeing is a bit of a luxury. its engines, airframe and fueling costs are higher than what bombadier and embraer will offer. Also those aircrafts arik used on the domestic scene(737-700/800) are what ethiopian and kenya airways use for regional flights of 4 - 6 hours . An aircraft engine typically has a maximum number of cycles before an engine change is due. Thus a kenya airways will generate more money from flying from nairobi to lagos and back utilising just cycles on its engines. In the same duration arik will generate less money on its domestic routes and utilize 8 cycles in a day. Thus arik's cost of engine maintenance and overhaul will most likely double that of an airline that deploys its 737-700/800 appropriately.
3. Lack of MRO facility for its fleet necessitating increased cost of maintenance.
4. Zero corporate governance. The founding CEO's son had 3 years of banking experience and emerged CEO of arik thereafter. I believe aviation is one of the most difficult and complex businesses out there thus assigning a CEO with limited skills and experience in the sector fuelled some of the wrong decisions that were made.
5. High cost of funds: Arik borrowed money from nigerian commercial banks at 24% interest rate . In aviation you need single digit funding to survive. At the time arik borrowed $240 million from a nigerian bank the naira to dollars exchange rate was 159. At the time they were paying back it was 360.
6. Operating environment was harsh.
7. Their decision to operate into london heathrow and JFK further compounded their problems. Kenya airways sold one of its slots at london heathrow to oman air for GBP80 million. Arik wasnt financilly strong enough to expand its operations to heathrow.
8. Acquisition of 2 A340 aircrafts at a time airlines were disposing them due to their high fuel consumption and 4-engined nature.

Anybody investing in commercial aviation should learn from arik's fall and the fall of many other airlines prior to arik. Commercial aviation is generally not a profitable business yet it is very capital intensive. Air peace has a great opportunity to become a strong carrier if and only if they operate with prudence and strategically.

gambia:
Q for What?

Tovard:
When it comes to business I give it to my people from the Eastern side of Nigeria. No cap!
These people are business oriented unlike confused set of people from the Northern hemisphere of Nigeria who choose poverty as a way of life! They are good in killing, kidnapping, bandits, drugs cartels, Saboteurs, marrying under age girls, begging alms etc while the educated illiterates from Southern parts of Nigeria like follow follow, skull mining, money rituals, occultic activities, education without proves etc.

Hezmatosky:
Must you write your name? Air peace never do?

LagBlogger:
Na so Arik take start.
So so new aircraft till Amcon took over.

sheguy:
This man just keep making Nigeria proud. I will fly air peace this december when coming home.

Tovard:
When it comes to business I give it to my people from the Eastern side of Nigeria. No cap!
These people are business oriented unlike confused set of people from the Northern hemisphere of Nigeria who choose poverty as a way of life! They are good in killing, kidnapping, bandits, drugs cartels, Saboteurs, marrying under age girls, begging alms etc while the educated illiterates from Southern parts of Nigeria like follow follow, skull mining, money rituals, occultic activities, education without proves etc.

LagBlogger:
Na so Arik take start.

So so new aircraft till Amcon took over.

GuyfawkesAB:
He has been a deft manager of the billions he and Kingsley Kuku cornered through the Amnesty training programs plus other 'investors' funds. No wonder Kingsley too is flexing on his share of profits. Go and see his palatial hotel at GRA Akure.

tshtsh:
As a business man I want to believe he studied the arik situation and must have learnt not to repeat the same mistakes. In my own opinion arik went bankrupt for the following reasons :

1. High cost of operation. The airline had a large workforce of expatriates which cost them millions of dollars in salaries and benefits.
2. Use of wrong aircrafts: Boeing and airbus are expensive aircrafts compared to bombadier and embraer. For short routes such as Lagos to port harcourt with passengers paying 30k - 40k boeing is a bit of a luxury. its engines, airframe and fueling costs are higher than what bombadier and embraer will offer. Also those aircrafts arik used on the domestic scene(737-700/800) are what ethiopian and kenya airways use for regional flights of 4 - 6 hours . An aircraft engine typically has a maximum number of cycles before an engine change is due. Thus a kenya airways will generate more money from flying from nairobi to lagos and back utilising just cycles on its engines. In the same duration arik will generate less money on its domestic routes and utilize 8 cycles in a day. Thus arik's cost of engine maintenance and overhaul will most likely double that of an airline that deploys its 737-700/800 appropriately.
3. Lack of MRO facility for its fleet necessitating increased cost of maintenance.
4. Zero corporate governance. The founding CEO's son had 3 years of banking experience and emerged CEO of arik thereafter. I believe aviation is one of the most difficult and complex businesses out there thus assigning a CEO with limited skills and experience in the sector fuelled some of the wrong decisions that were made.
5. High cost of funds: Arik borrowed money from nigerian commercial banks at 24% interest rate . In aviation you need single digit funding to survive. At the time arik borrowed $240 million from a nigerian bank the naira to dollars exchange rate was 159. At the time they were paying back it was 360.
6. Operating environment was harsh.
7. Their decision to operate into london heathrow and JFK further compounded their problems. Kenya airways sold one of its slots at london heathrow to oman air for GBP80 million. Arik wasnt financilly strong enough to expand its operations to heathrow.
8. Acquisition of 2 A340 aircrafts at a time airlines were disposing them due to their high fuel consumption and 4-engined nature.

Anybody investing in commercial aviation should learn from arik's fall and the fall of many other airlines prior to arik. Commercial aviation is generally not a profitable business yet it is very capital intensive. Air peace has a great opportunity to become a strong carrier if and only if they operate with prudence and strategically.

peppermint7:
shut up

LagBlogger:
Ignorance not ignorant.

Mr psychologist and expert mind reader new aircraft is symbolic not literal unlike brand new which means never used, you can use new to mean additional aircraft.

Kiss my @#$.

gambia:
Pls you guys should stop delaying our flight.

Tovard:
When it comes to business I give it to my people from the Eastern side of Nigeria. No cap!
These people are business oriented unlike confused set of people from the Northern hemisphere of Nigeria who choose poverty as a way of life! They are good in killing, kidnapping, bandits, drugs cartels, Saboteurs, marrying under age girls, begging alms etc while the educated illiterates from Southern parts of Nigeria like follow follow, skull mining, money rituals, occultic activities, education without proves etc.

sheguy:
This man just keep making Nigeria proud. I will fly air peace this december when coming home.