Aero Contractors has announced that it would suspend passengers flights operations indefinitely from Wednesday, July 20.
Gatekeepers News reports that the airline’s management in a statement said the decision was a result of the challenging operating environment it faced daily.
The airline said the situation was made worse as some of its aircraft were undergoing maintenance and we’re unavailable for use.
The statement reads, “Due to the impact of the challenging operating environment on our daily operations, the management of Aero Contractors Company of Nig. Ltd. wish to announce the temporary suspension of its scheduled passenger services operations with effect from Wednesday, July 20, 2022.
“This does not in any way affect the Maintenance activities of the Approved Maintenance Organisation (AMO) otherwise known as AeroMRO, the Approved Training Organisation (ATO) also known as Aero Training School, the Helicopter and Charter Services operations.
“This decision was carefully considered and taken due to the fact that most of our aircrafts are currently undergoing Maintenance, resulting in our inability to offer a seamless and efficient service to our esteemed customers.
“We are working to bring these aircrafts back to service in the next few weeks, so we can continue to offer our passengers the safe, efficient, and reliable services that Aero Contractors is known for, which is the hallmark of Aero Contractors Company of Nig. Ltd.
“The past few months have been very challenging for the Aviation industry and the airline operators in particular. With the high cost of maintenance, skyrocketing fuel prices, inflation, and forex scarcity resulting in high foreign exchange rates. These are amongst the major components of airline operations.
“In the meantime, we are working assiduously to return to service as quickly as possible, and do assure our esteemed customers and stakeholders of our determination, that our short absence will not create any major void in the market, as we are coordinating with our business partners to ensure minimum discomfort to ticket holders.
“As members of Spring Alliance (a commercial alliance with member airlines providing mutual support in the area of operations), we are liaising with our partner airlines to minimise the impact on our esteemed customers. Our customer service team will be working to help affected esteemed customers reach their destinations.
“We sincerely apologise for any inconvenience caused to our esteemed customers and promise to return to service as soon as possible.
“We thank you in advance for your cooperation and understanding at this time.”
Origin of Aero Contractor’s Issue
1)The problem of Aero Contractor did not start today but started about a decade ago when the British technical partners were sidelined and the management came under a SINGLE management of the Ibru family. Two years after the Airline went under with debts. The airline came under the management of AMCON with limited knowledge in commercial aviation. Lack of corporate governance was partly responsible for it currently abysmal performance.
2)The high rise in fuel prices did not start today nor did it start earlier than 5 years ago but about two decades ago and Aero Contractor being the oldest airline after the Nigeria Airways should know better than the rest. Aero should know the benefits in fuel prices it enjoyed in the 80s and early 90s when fuel was being refined in Nigeria as against today when aviation fuel is being imported.
Prices have been irregularly increased almost monthly in spite of what government called subsidies to the fuel marketers. Within a year, it has quadruple from #200/ltr to #800/ltr.
3) Operators including Aero Contractors have experienced irregular forex demands and cost of service in borrowed funds is high and CBN have not cope always with demands for forex for a sector whose 80 % of it value chain – maintenance , OEM Spare part, training, Fuel etc is dollar dominated.
