By Chinelo Obogo, Lagos
Aero Contractors has said it is shutting down its operations due to the impact of the challenging operating environment on its daily operations.
In a statement on Monday, the airline said it will temporarily suspend its scheduled passenger services operations with effect from Wednesday, July 20, but that this development would not 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.
The airline said most of its aircraft are in C-check and undergoing maintenance, hence, it would be unable to offer efficient services to its customers but that it is liaising with partner airlines that are part of the Spring Alliance to minimise the impact of its decision.
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The statement from the airline read: “We are working to bring these aircraft 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.
“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.”
Daily Sun had reported in April this year that Aero was having cash flow problems and may shut down if the situation does not improve. Among other factors, the situation was exacerbated after the airline received two Airbus A320 aircraft on lease last year to help expand its capacity. However, reliable sources told Daily Sun that one of the aircraft developed engine problems and has not been in operation for some months, while the financier who facilitated the lease withdrew the second one and leased it to Arik following Aero’s inability to continue the payment on schedule.
A reliable source within the airline told Daily Sun that one of the reasons why Aero was unable to continue paying for the aircraft is due to the slump in passenger traffic and the high cost of aviation fuel which had increased its operating costs. Aero has been under the receivership of the Asset Management Company (AMCON).