AMCON’s NG Eagle yet to fly 4 years after, records 20bn losses
About four years after registration, a new airline NG Eagle being promoted by the Assets Management Corporation of Nigeria (AMCON) has failed to fly despite completing the certification process, as its losses may have exceeded N20 billion, Daily Trust reports. It was learnt that the Air Operator’s Certificate (AOC) of the new airline has been […]
About four years after registration, a new airline NG Eagle being promoted by the Assets Management Corporation of Nigeria (AMCON) has failed to fly despite completing the certification process, as its losses may have exceeded N20 billion, Daily Trust reports.
It was learnt that the Air Operator’s Certificate (AOC) of the new airline has been ready since September 2021 but has yet to be signed by the Director-General of the Nigeria Civil Aviation Authority (NCAA).
Close sources estimated that over $50 million (N20.7bn) has been lost since September when it ought to have begun operation. The losses include expenses on salaries of 100 personnel and maintenance from September 2021. Other losses are on contracted services $298,605.78; IT $121,829.95; logistics $113,699.37 and rent 25,588.08; repair/renovation $16,583.41, among others.
It was incorporated as NG Eagle Limited RC: 1600277 on July 11, 2019, with a share capital of 1,000,000,000. The shareholders are AMCON with 499, 999, 999, while Omokhide Kamilu Alaba has one unit of share.
It was to be established from Arik Air, which AMCON took over in 2017 with three of the airline’s aircraft already converted to NG Eagle. The three aircraft were ready in February 2021 at the apron of the Murtala Muhammed Airport in Lagos.
However, some aviation unions kicked against the move to float another airline from Arik, insisting AMCON should clear Arik Air’s indebtedness to aviation agencies of over N43bn. They also petitioned the National Assembly, which ordered the NCAA to halt the AOC issuance.
Our correspondent sighted the AOC approved by the NCAA in September for commercial flights. With certificate number: NGE/AOC/08-21/001, the AOC will expire on September 20, 2023, but is yet to be signed.
When contacted, the spokesman of NCAA, Mr. Sam Adurogboye, tersely said: “Yes the AOC has been prepared as confirmed by the DG but there are some issues that need to be straightened before he can sign it.”
However, the spokesman for AMCON, Jude Nwazor, did not respond to our correspondent’s enquiry yesterday.
Commenting on it, aviation analyst, Group Capt. John Ojikutu (rtd) said: “The DG NCAA is right to withhold his signature on the AOC of an airline that has no identified shareholders, board members, office address, operational base, etc. Has the aircraft been bought for registration? Still many questions that would need answers from the NCAA.”