Aero Contractors addresses liquidation plan amid aviation industry struggle

Aero Contractors has denied reports that the airline operator is planning to cut down its workforce and shutdown business operation, stating that the claims are “wild and unfounded.”

The allegation was made by National Union of Air Transport Employees (NUATE) and the Air Transport Senior Staff Services Association of Nigeria (ATSSAN) during a press conference on Monday.

Aero Contractors said the two unions are always in a haste to compromise confidential information to the public, explaining that the current challenges in the aviation industry is what’s affecting its business, not a plan to liquidate.

According to the statement released on Monday, Aero Contractors said, “It is in this regard that we are at a loss why the staff, knowing the challenges airlines are facing in the current operating environment are always in a haste to compromise confidential information to the public and make it an issue of discussion.”

Recall that the airline operators in Nigeria had weighed option of shutting down their businesses early this month over rising cost of aviation fuel, known as Jet A1, which rose from N190 per litre to N700.

The company further explained that, “We are conscious of the challenges we are facing and have been prudent with our expenses, and doing our best to take care of staff welfare.

“The current management decided to create the four strategic business units (SBUs): maintenance repair overhaul (MRO), aviation training organisation (ATO), airline operation and rotary wing, to enhance efficiency and profitability.

“There’s no Nigerian carrier without debt overhang caused by the operating environment. And all major airlines in the world have had similar challenges, but took strategic measures to turn around the airlines.

“It is unfortunate that the airline industry operates on thin margins and airlines are always making efforts to be leaner and smarter to stay afloat.” the statement reads.

Aero Contractors projected that the fortunes of the company will change in the next few months, “We believe that as the revenues begin to improve over the next few months, following strategic engagements with potential partners, the airline’s fortune will improve.”