While making the disclosure, the airline’s Public Relations and Communications Manager, Adebanji Ola, in a statement said the company took the decision to downsize its workers due to the COVID-19 pandemic which has caused the airline a major setback financially.

The statement partly read: “Arising from the devastating impact of the COVID-19 pandemic, leading to the constrained ability of the airline to complete heavy maintenance activities and return its planes to operations, stunted revenues against increasing operational costs, the management of Arik Air (In Receivership) has declared 300 staff members redundant to its current level of operations.

 “The leadership of the impacted unions has been contacted to negotiate a redundancy package for the affected staff.

“It is important to note that over 50 percent of Arik Air’s workforces of over 1,600 staff have been on furlough in the past six months on a base allowance.

“Decisions to let go of staff is naturally a difficult decision. Arik Air wishes the impacted staff well in their future endeavors.”

This line of action taken by arik airline has left many of their passenger stranded  at the airport as the National Union of Air Transport Employees (NUATE) blocked the entrance of the airline’s headquarter with placards and board.

While arik air may have retrenched over 50% of its workforce due to the economic downturn caused by Coronavirus, this publication understands that the official who was quoted in this report didn’t deny that the workers were retrenched, instead he maintains that redundancy packages would be provided for the affected workers.

But the reality is, yes! The coronavirus pandemic did hit the world hard but should that make organisation lose their humanity? Retrenchment is not a way to compensate workers who have risked their lives for the job.

The post Mass Sacking At Arik Airline As 300 Workers Get Dismissed appeared first on Business News in Nigeria.

Recall that the Asset Management Corporation of Nigeria (AMCON) had plans to merge both companies due to the alleged debt burden of the airlines caused by the Coronavirus pandemic.

With the proposed plan, the merged airline will enjoy increased revenue by saving costs. It however appears that the CEO doesn’t have plans to merge its company with its competitor.

While reacting to the merger plan, Sanusi stated that the government has the right to merge both airlines but the truth remains that both companies are not compatible considering their history and present circumstances.

He said: “Aero and Arik can come together but the history of those companies are not similar; their origin and circumstances are different, but government can get financial experts that can look at the two companies and put them together to make sure we serve the public better.

“I hope that the federal government is not going to lose that objective because airlines provide efficient logistics that is safe and fast. I think that government has the legal right to do anything, but I don’t think that it is a good way to follow for the two airlines, but I believe that if you get very good consultants, there is nothing that is impossible to do,”

Merging? A welcome development

In response to merging both companies, the Industry consultant and CEO of Aglo Limited, Tayo Ojuri, opined that Aero Contractor was capable of standing alone but due o the COVID-19  pandemic, it could also consider merging both companies.

 He said: “Aero Maintenance is a different entity and it has been doing well. I don’t think they should sell off that part. It generated N350 million last year and aircraft are lined up to be maintained.

“They have a strategic alliance with foreign partners, which is very good. But for their survival considering the burden caused by COVID-19, i believe it is the way to go and they should give it consideration.”

The post Aero Contractors React To Merger Plan With Arik Air appeared first on Business News in Nigeria.