ARIK AIR IN THE SAND OF TIMES

This is not a good time for Arik Airlines, Nigeria's no 1 carrier as it is faced with a myriad of troubles. For the second time in a week, the aviation unions have threatened to disrupt its activities. The trouble airline is said to be in dire need of a bail out, as it plans to cut hundreds of jobs due to its inability to meet its obligations, increased financial expenses, unfavorable foreign exchange, reputation damages arising from different in flight problems.
The airline is alleged to owed aviation parastatals huge sums of money and in fact been having problems since the middle of 2014. “Arik has been enjoying services of aviation para­statals without paying for them. This protest is to send a notice to Arik management that the aviation workers are tired of the incessant indebtedness of Arik to all the aviation parastatals” said the President of Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) Mr Benjamin Okewu.  The Deputy Managing Director of Arik Air, Captain Ado Sanusi made a plea recently asking for the debt of the airline to be rescheduled and interest rates reviewed downwards.He also pleaded with the aviation authorities to reschedule the debts owed by the airlines.
The airline has experienced a high turnover staff rate in recent times as pilots left for other airlines and private work. Arik was a beneficiary of N15 billion out of the N300 billion Aviation sector  intervention fund in the past. Aviation industry world wide is very capital intensive and a major downside is they are heavily unionized. Billionaire investor and Sage of Omaha, Warren Buffet has repeatedly said he will never touch the sector nor include in his portfolio.