How AMCON was frustrated out of NG Eagle AOC – Source
Key highlights
AMCON was frustrated from pursuing the Airline Operators Certificate (AOC) for startup airline NG Eagle due to pressures from some players in the Nigerian aviation sector and a lawsuit against AMCON by former owners of Arik Air.
AMCON sold its rights in NG Eagle to some unnamed investors who continued with the AOC processes.
The names of the new investors in NG Eagle are unknown, and the Federal Government may grant the airline national carrier status after the Nigeria Air project failed.
More facts have emerged on how the Asset Management Corporation of Nigeria (AMCON) was frustrated from further pursuing the Airline Operators Certificate (AOC) for the startup airline, NG Eagle.
A source close to the corporation told our correspondent on Thursday that the combination of pressures from a section of players in the Nigerian aviation sector and the lawsuit against the corporation by the former owners of Arik Air, led by Sir. Joseph Arumemi-Ikhide compelled AMCON to hands-off the airline.
What you should know
Recall that AMCON was accused of stripping the equipment of Arik Air to form a new airline out of the airline that has been under its receivership since February 2017.
It was gathered that after the series of crises that engulfed the planned formation of NG Eagle, AMCON sold its rights in the airline to some unnamed investors who continued with the AOC processes.
Nairametrics gathered that AMCON had pursued the AOC process to the last stage before it was allegedly frustrated out of the exercise by some players in the industry, including at least an industry union, and some government officials who feared that the emergence of the airline may affect the planned national carrier project, Nigeria Air and some airline operators.
NG Eagle is no longer under AMCON’s control
A source close to the corporation, but who didn’t want his name in print, confirmed to our correspondent that NG Eagle was no longer in the custody of AMCON.
The source, however, expressed disappointment at the industry regulator, Nigeria Civil Aviation Authority (NCAA) still went ahead to issue the airline an AOC to operate as a scheduled operator despite the legal suit against its emergence. The source said:
“I can confirm to you that the NG Eagle brand name is no longer in the guardianship of AMCON. As you are aware, all efforts to acquire AOC for the startup carrier were frustrated by some interests in the industry.
“The case against AMCON and the airline is in court, but some of us were surprised how the NCAA could still go ahead to issue an AOC to operate as a scheduled operator. Is that not in the flagrant disobedient of its own rule? I just hope with the way the NCAA is going, it will not rubbish itself in the long run, especially at a time when the International Civil Aviation Organisation (ICAO) is coming to audit it.”
New NG Eagle investors are unknown
As of the time of filing this report, the names of the new investors in the airline are still shrouded in secrecy and efforts by our correspondent to know the identities of the new investors proved abortive.
But, another industry source alleged that the Federal Government may eventually grant the airline a national carrier status after the Nigeria Air project failed.
In case you missed it
The Federal High Court sitting in Lagos had about two weeks ago ruled that the attempt to transfer Arik Air Limited Assets to NG Eagle Airlines (third defendant), was not in the best interest of Arik Air as a whole.
The founder of Arik Air, Sir Johnson Arumemi Ikhide, and his wife, Mary Arumemi-Ikhide (Plaintiffs) had filed an originating summons, dated December 14, 2021, challenging the plan by AMCON to set up a new airline from Arik Air.
The plaintiffs averred that the transfer of Arik Air Limited assets to NG Eagle (third defendant) and Super Bravo Limited (fifth defendant) “was done in bad faith and a violation of Mr Kamilu Omokhide’s (first defendant) the fiduciary duty to Arik Air Limited as imposed by section 553 of the CAMA 2020.”
The duo of Arumemi and his wife said that in an attempt to transfer Arik Air Limited assets to NG Eagle and Super Bravo Limited, Omohkide did not act in the best interest of Arik Air Limited as a whole, thereby failing in his duty to act in accordance with section 533 of the CAMA 2020.
The plaintiffs equally sought a declaration that Omokhide, the receiver/manager appointed by AMCON was liable for any losses suffered by Arik Air Limited and its members as a result of the transfer of Arik’s assets to NG Eagle Limited.
Related
Full Story: https://nairametrics.com/2023/04/14/how-amcon-was-frustrated-out-of-ng-eagle-aoc-source/
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