Aviation

AMCON sets up new airline to recover Arik’s debts

Published

5 years ago

March 31, 2021

Asset Management Corporation of Nigeria has said that in order to recover its huge debts from Arik Air, it injected over N375 billion in the airline and established another carrier, NG Eagle, expected to run along with Arik Air.

AMCON said it had sustained Arik Air operations since 2017 when it took over in order to stabilise the aviation industry and save jobs.

After its debts recovery, it hinted that it might sell NG Eagle to private investors or through the stock exchange.

Arik Air Receiver Manager, Mr. Kamilu Omokide, in an interview with THISDAY, said, “AMCON came into Arik in February 2017, during the economic recession. At that time, Arik did not have operational funds.

“The workers faced an uncertain future. All the aircraft were grounded because their insurance premium had expired; that at a time the airline did not operate because of insurance.

“Before AMCON came, Lufthansa, which provided technical service to the airline, had walked away. The airline was no more creditworthy to the extent that fuel suppliers shunned the airline.

“It was only MRS that allowed credit to the airline and it had a maximum of N33 million. This was too small for an airline of that size of Arik. So there was no fuel to operate the flights.”

Omokide, who was seconded to Arik by AMCON, said the airline would be operated along with NG Eagle, at least till the end of 2021, adding that with the support of AMCON, plans had been concluded to acquire three aircraft for Arik through wet leasing.

He said, “Arik does not plan to get out of business. It will operate side-by-side with NG Eagle for a while. We have been able to access wet leases and we have been able to run them very professionally. AMCON is not taking all the planes. We have a plan to bring three more planes with the support of AMCON on wet lease, ACMI.

“We are not rushing to kill Arik. We cannot pull all of our aircraft from Arik. Arik will be sustained throughout this year. Arik has a very big space at its headquarters that can take in four airlines on a good arrangement where costs can be shared.

“So Arik has huge facility; it has good workers who are experienced and we have been training staff since AMCON took over, something that was rare in the past. In fact, we have exposed the workers to all kinds of training. Our pilots are some of the best in the industry. Experience is very important,” he added.

He said Arik Air would have gone under without the intervention of AMCON in 2017, noting that the corporation adopted a different strategy in Arik, otherwise, it would have closed the company and sold the assets.

However, he said because of the sensitive nature of the aviation industry and the critical role of the sector as a catalyst to the nation’s economy, it decided to sustain the airline’s operations.

He stated that when AMCON took over, many of its aircraft were overseas on mandatory maintenance because there was no money to bring them back.

He added that creditors were closing in on the airline, with flight cancellation as high as 40 per cent to the extent that passengers mobbed the headquarters of the airline demanding refund of their fares.

“So, the decision of AMCON to intervene was nationally imperative in order to save the airline because of the critical role it was playing; to stabilise the industry and to rescue our funds. AMCON realised that it would take a lot of stabilisation and decided to take its own planes and move them to NG Eagle,” he said.

He said NG Eagle would be a formidable airline, which would eventually be sold to either government or other investors.

According to him, AMCON will treat the NG Eagle as a private sector initiative.

“If the government decides to buy it, that will be good; or we go for the private sector option or we sell it through the stock exchange,” he added.

Omokide said AMCON might not repair all the aircraft it inherited.

He, however, said the corporation had identified those it would repair, and it would either sell the Airbus A340-500 or convert them to cargo planes.

“We do not think we can repair all the planes we met on the ground. We have identified the ones we can repair and sell the other. We plan to sell the A340-500 or convert it to cargo planes. One of the two A340-500 is being preserved. So we are looking at options of cargo,” he said.

Aviation

FAAN Introduces Hybrid Toll Payment System Following Tinubu’s Directive

Published

1 month ago

March 6, 2026

Trends Admin

FAAN Introduces Hybrid Toll Payment System Following Tinubu’s Directive

The Federal Airports Authority of Nigeria (FAAN) has introduced a temporary hybrid toll payment system at airports nationwide following heavy traffic congestion caused by the rollout of its cashless toll payment policy. The move comes after President Bola Tinubu directed the authority to ease implementation challenges to prevent travel disruptions.

FAAN Managing Director, Mrs. Olubunmi Kuku, told journalists in Lagos on Thursday that the decision followed severe gridlock at major airport toll gates, particularly Murtala Muhammed International Airport (MMIA), Lagos, as motorists struggled to adapt to fully digital payment methods. “He [the President] saw the traffic congestion and directed us to temporarily revert to a hybrid approach,” Kuku said. “This ensures smoother access while we refine the cashless system — it is a win for the industry.”

The hybrid model allows commuters and travellers to pay tolls using a combination of cash, prepaid FAAN cards, e-tags, debit cards, and other electronic options. Kuku emphasized that the arrangement will let FAAN continue its digital payment initiative while still accommodating users who have yet to register or activate electronic payment channels.

FAAN Introduces Hybrid Toll Payment System Following Tinubu’s Directive

Aviation

FCCPC Finds Evidence of Airfare Manipulation by Domestic Airlines

Published

1 month ago

February 27, 2026

Trends Admin

FCCPC Finds Evidence of Airfare Manipulation by Domestic Airlines

The Federal Competition and Consumer Protection Commission (FCCPC) says it has uncovered credible evidence of airfare manipulation by domestic airlines in Nigeria, revealing that some carriers may have artificially inflated ticket prices during the December 2025 festive travel season beyond what market forces would justify. In an interim report released on Thursday, the FCCPC said its extensive forensic review of airfare data collected directly from airlines across key domestic routes shows striking irregularities in pricing patterns that appear inconsistent with normal seasonal demand, fuel costs, foreign exchange movements, or other operational variables.

The review by the Commission’s Surveillance and Investigations Department, led by Director of Corporate Affairs Ondaje Ijagwu, compared peak-season fares in December 2025 against ticket prices in the post-holiday period of January 2026. In many cases — notably on high-traffic corridors such as Abuja–Port Harcourt, Lagos–Calabar, and Lagos–Enugu — the difference in fares reached as high as ₦405,000 for a single ticket, even though essential cost drivers remained relatively stable. “These fare differences appear to reflect airlines’ arbitrary pricing decisions, yield management strategies, and capacity allocation practices rather than any variation in regulated fees or significant changes in operating conditions,” Ijagwu said, suggesting that multiple domestic carriers might have engaged in tacit coordination rather than true competition.

The report also showed that during the peak period, reduced seat availability paired with clustered price ranges across multiple operators raised further competition concerns, lending weight to potential violations of Nigeria’s Federal Competition and Consumer Protection Act (FCCPA) 2018. The interim findings flagged possible breaches of provisions governing restraint of competition, abuse of dominant positions, price-fixing, conspiracy, unfair contract terms, and consumers’ right to fair dealings — signalling that airlines may have breached multiple competition and consumer protection rules.

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The Airline Operators of Nigeria (AON) swiftly pushed back against the FCCPC’s report. AON spokesman Prof. Obiora Okonkwo said the Commission lacks the specialised expertise to analyse aviation pricing, warning that the probe could harm Nigeria’s fragile airline sector. “They don’t understand the economics of airlines or how ticket prices are set based on yield, load factors, aircraft utilisation and revenue management systems,” Okonkwo said. “This action is very detrimental to the survival of domestic operators.”

Independent aviation analysts in Nigeria say pricing behaviour in the sector has long lacked transparency. Dr. Uche Okoro, a transport economist, told news editors that while peak-season travel normally pushes fares up, the consistency of spikes across multiple airlines on the same dates and routes — even where there was no significant change in fuel or exchange rates — suggests coordinated pricing behaviour. “Market competition should push airlines to differentiate prices based on service levels and actual costs,” Okoro said. “When several carriers raise prices almost in unison, especially on predictable peak travel dates, it warrants scrutiny.”

The Nigerian Civil Aviation Authority (NCAA) acknowledged the FCCPC’s interim report and pledged to support the broader probe, noting that the aviation sector must balance airline financial sustainability with fair market practices. An NCAA spokesperson said: “We are engaging with the FCCPC and industry stakeholders to promote a transparent pricing environment. While airlines need to remain viable, consumers must also be protected from exploitative fare regimes.” The NCAA emphasised that factors such as fleet size limits, airport slot restrictions, seasonal demand patterns, and infrastructure capacity do affect pricing, but agreed that unusually steep price spikes merit investigation.

According to the FCCPC, the route-by-route analysis showed that on Abuja–Port Harcourt, average peak-period fares were far higher than post-peak levels, with many tickets in December priced well above the typical seasonal range. On Lagos–Calabar and Lagos–Enugu, similar patterns of clustered fare bands across airlines suggested pricing behaviour broadly aligned among competitors rather than differentiated by market forces. Across sampled routes, median fares during the festive period were significantly elevated compared with post-peak benchmarks, despite stable fuel price trends, unchanged airport taxes, and no major exchange rate shocks. The FCCPC noted that while predictable seasonal demand surges can justify higher fares, the magnitude and pattern of the increases observed in December 2025 are not fully explained by ordinary market conditions.

FCCPC Executive Vice Chairman and CEO Tunji Bello stressed that the interim report is not an enforcement action, but a step toward deeper investigation. “The Commission’s role is to ensure that market outcomes reflect competition and consumer protection principles,” he said, adding that full findings and possible enforcement measures will follow after the ongoing review. Bello also signalled that foreign airlines operating international routes involving Nigeria will soon be probed, following complaints that Nigerian passengers are often charged significantly higher fares on similar international distances. “No operator — domestic or foreign — will be shielded if evidence confirms fare-fixing or consumer exploitation,” Bello said. The FCCPC has asked both airlines and consumers to assist in the investigation by providing additional data, while warning airlines that violations of the FCCPA could result in regulatory sanctions, fines, or mandatory corrective orders once the full review is concluded.

FCCPC Finds Evidence of Airfare Manipulation by Domestic Airlines

Aviation

248 Passengers Safe as Aircraft Makes Emergency Landing in Lagos

Published

3 months ago

January 17, 2026

Trends Admin

Murtala Muhammed International Airport

248 Passengers Safe as Aircraft Makes Emergency Landing in Lagos

An aircraft carrying 248 passengers and 12 crew members made a successful emergency landing in Lagos after developing a mid-air technical fault, aviation and emergency authorities have confirmed.

The aircraft, operated by Qatar Airways, landed safely at the Murtala Muhammed International Airport (MMIA), Lagos, after the flight crew alerted air traffic control to the fault while en route. Emergency response teams were immediately placed on standby as the plane approached the runway.