The Asset Management Corporation of Nigeria (AMCON)’s takeover of Aero Contractors in 2016 is paying off, helping the airline services provider to return to profitability after years of loss-making, Gbenga Alade, the CEO of the state debt recovery agency said.
Mr Alade, according to a statement by AMCON, told a media conference in Lagos on Thursday the company has witnessed a considerable financial turnaround under the new management it appointed for it eight years ago.
The statement said that the incumbent managing director of Aero Contractors, Ado Sanusi, recently stated that the company scaled back its liabilities by 33 per cent, and reported a profit margin of 18 per cent this year, compared to the “-69 per cent loss recorded in 2022.”
In February 2016, AMCON dissolved the board of the airline firm and afterwards named a manager to oversee the company, disclosing at the time that it took the step in the interest of the public to enhance “robust and premium quality service of the airline.”
The corporation had bought over Aero Contractors’ bad debt to commercial banks worth N32 billion, which was later converted into a 60 per cent equity stake. The Ibru family holds the remaining 40 per cent shares in the company.
“Right now, they have only two aircraft flying and yet they were able to make money from them and the two aircraft did not even belong to them. They were given to them to manage by the Cross River State Government. They don’t even have the aircraft of their own. The ones they have had problems, and they are trying to fix them,” Mr Alade was quoted as saying.
“Now that they have started to make a profit, they are creating a pool of funds to refurbish their own aircraft. They also have plans to bring five more 737, 500 series very soon on dry lease arrangement,” he added.
The AMCON managing director is upbeat that the firm is on course to transform the airline market, with roughly ten aircraft currently in its fleet will and a history of safe flights.
He went further to say that Aero Contractors could record greater feats, considering that it was able to report profit by leasing and hiring engines to run its business.
AMCON, which is set to wind down in 2026, has an outstanding sum of N4 trillion to recover from obligors, whom it said are using the technicalities of the law to frustrate delay justice and frustrate recovery.