Arik Air to divest ownership, goes public May 2016

Arik Air's management said on Wednesday that it would go public by May 2016, in order to free the airline of a single ownership structure.
Johnson Arumemi-Ikhide, chairman of the airline, who disclosed this at a breakfast meeting with the topic: Ownership, funding and sustainability of Nigeria airlines,’ organised by Aviation Round Table, a non-governmental organisation, in Lagos, said the airline had invested a lot in Nigeria and its management was proud of the company.
He also called for a Fly Nigeria Act, as obtainable in the US, where all government functionaries’ travel itineraries were channelled through the country’s airlines.
This will go a long way in assisting Nigerian carriers develop their capacity and compete with their foreign counterparts to a certain extent, he said.
Arumemi-Ikhide lamented that a lot obstacles stood in the ways of domestic carriers in Nigeria, ranging from high interest rate, hostility from the financial sector, lack of necessary protection from the Federal Government, high cost of aviation fuel and lack of Maintenance, Repair and Overhaul (MRO) facilities, among others.
According to him, domestic carriers are fighting a battle with the Ministry of Aviation; there is nothing we apply for that will not dragged on for a long time, whereas, foreign carriers are being granted frequencies at will.
“I can remember that sometimes ago, we applied for an MRO land, after some talks here and there, the land was divided between Arik Air and Nestor Oil. Eventually, the land became too small for us.
We were ready to invest $450 million on the facility but the Nigerian Civil Aviation Authority (NCAA) and the Ministry refused to grant us smooth facilitation to its existence, that’s one of the problems we are faced with.
“It is cheaper to buy aviation fuel in Accra and Dubai than to buy in Nigeria, because of the cost. The banking industry is not friendly, during the volcanic ash cloud, British Airways and Virgin Atlantic got compensated, and Kenya Airways was compensated with 4500 million over the crisis in that country.
“Nigerian government has not really stood its ground to help the airlines here, we need an intervention funds set aside for the sector, this should be monitored by the Airline Operators of Nigeria and the NCAA, in order to ameliorate some of the problems,” he said.
Source:businessdayonline.com