Foreign investors avoiding Arik Air

Arik Air B737-700

The Managing Director of the Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru, has ruled out the possibility of foreign investment in Arik Air (W3, Lagos), which is currently under AMCON's management.

Speaking to Nigerian media, Kuru also said that the government would not try to create a new national airline out of Arik and Aero Contractors (NIG, Lagos), which is also in AMCON's hands.

"It will be suicidal to build a national carrier from Aero and Arik because the problem they will face is very huge, including litigations that can last up to 10 years," the Daily Trust reports Kuru as saying. He added that foreign investment was unlikely. "No investor will put his money on these airlines without first addressing the problems on ground."

The comments come after attempts earlier this year for Ethiopian Airlines (ET, Addis Ababa) to take an interest in the failing airlines were rebuffed.

Nigerian media also reports that the auditing firm hired by AMCON to conduct a forensic and diagnostic audit of the Arik Air's finances has uncovered more debts than previously disclosed. Anonymous sources talking to Nigerian Flight Deck have said that KPMG's audit will take longer than expected due to the discovery of more liabilities.

Source: https://www.ch-aviation.com/portal/news/56494-foreign-investors-avoiding-arik-air-kuru

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