Aero Contractors Risks N16billion Loss to Aviation Crisis

Aero Contractors Airlines, one of the oldest domestic carriers in Nigeria is at risk of losing about N16 billion between September when the airline suspended its flight operations and December 2016, Leadership reports.

The carrier had on September 1, suspended its scheduled flight operations services, which was part of the strategic business realignment to reposition the airline and return it to the part of profitability.

According to a reliable source,  the airline was making up the sum of N4 billion in a month with seven functional aircraft. According to the source, it is estimated that if Aero had been functional since September 1, the local carrier may have been able to generate about N16 billion over a period of four months that is from September 1 till the end of December, 2016.

Commenting on the suspension of schedule flight operations by Aero Contractor, president, National Association of Aircraft Pilots and Engineers (NAAPE), Engr Isaac Balami said that it was obvious that Aero must have lost money running into billions but that the matter does not end there.

Balami said the government on their own part is equally losing because the tax which should accrued to the government’s treasury will no longer be there.

Advising the government to intervene in the matter, the aircraft engineer said, “When Aero Contractors were flying with 7 aircraft, they were making money. You can imagine how much they must have lost within these few months. Let me tell you, the government is also affected because the money they get through tax will no longer come again. What about salaries, fuel and the families of over 1, 500 workers who are not working again”.

Balami therefore urged the government to tackle the issue seriously so as to return the airline to profitability just as he noted that passengers who patronise the airline have also been affected, particularly on their route networks.

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By 9jatravel / Administrator, bbp_keymaster

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on Oct 11, 2016

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