By Wole Shadare (The Guardian)
IN the face of fund paucity in the aviation sector, which precipitated high rate of attrition of airlines in the aviation industry, Arik Air may soon approach the capital market to raise funds to up its ante.
Already, talks are on between the airline and the authorities of the capital market on modalities for a smooth transition to a quoted company that is expected to emerge from the airline current restructuring exercise.
To set the stage for going public, Delloite of United Kingdom (UK) is looking into the books of the airline.
A source in the aviation industry told The Guardian yesterday that “Arik Air will soon go public. Nigerians will have the opportunity to buy shares in the airline and have a say on how it is run. Delloite from the UK is looking at the books of the airline as part of preparations to go public.”
The Guardian learnt that the decision of the airline to go public might not be unconnected with fund paucity saga assailing the nation’s airline industry.
The planned listing of Arik on the stock market would make it the third airline after the defunct ADC and Albarka Airlines to go public.
ADC Airlines, which became operational on January 1, 1994, went public. Albarka Airline equally went to the stock market before its eventual demise in 2002.
The Assistant Secretary-General of Airline Operators of Nigeria (AON), Muhammed Tukur, yesterday lauded the move, saying it would help to strengthen the company’s financial base.
Stakeholders in the industry, who spoke with The Guardian on the development, attributed most of the problems faced by the airlines to managerial incompetence and policy inconsistency.
The Managing Director of Bristow Helicopters, Captain Akin Oni, attributed the tough terrain airlines in Nigeria had found themselves to high import duties on aircraft, helicopters, and spare-parts, adding that this only happens in Nigeria; a situation he disclosed has killed the growth in the industry.
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