Aviation union accuses AMCON of mismanaging Aero Contractors

The National Union of Air Transport Employees has accused the Asset Management Corporation of Nigeria of mismanaging Aero Contractors Company Limited, raising concerns over the airline’s operational stability and long-term survival.

The union made the allegation in a statement signed by its National President, Nnabue Konye, where it criticised AMCON’s handling of the airline, warning that continued interference could reverse the progress recorded in recent years.

According to the union, AMCON’s failure to provide critical operational funding has placed the airline under significant strain, limiting its ability to sustain operations in an already challenging aviation environment.

“AMCON has declined to provide necessary funding for Aero Contractors Company Limited, hampering operational stability and growth,” Konye said.

The union argued that beyond financial constraints, AMCON’s involvement in the airline’s management structure has created additional challenges due to what it described as a lack of technical expertise in aviation operations.

“AMCON lacks technical expertise in aviation, yet continues to interfere in the day-to-day running of the company with inexperienced personnel. This has caused significant setbacks in a time-sensitive industry,” the statement read.

It warned that such actions could undermine safety standards, weaken operational efficiency, and create uncertainty among employees and stakeholders.

Workers within the airline were said to have expressed growing concerns over the direction of management, citing what they described as inconsistent leadership decisions and declining confidence in the organisation’s future.

Some staff members, who spoke on condition of anonymity, described the current situation as unsettling, noting that the absence of a clear strategic direction could negatively impact productivity and morale.

The union also criticised the redeployment of personnel from Arik Air to Aero Contractors, describing the move as counterproductive and potentially disruptive to the airline’s internal structure.

Konye said the challenges experienced by Arik Air under AMCON’s management should serve as a warning against similar actions at Aero Contractors.

“AMCON, under whose management Arik Air deteriorated, is now redeploying Arik Air staff to Aero Contractors, despite the latter growing organically from one aircraft to nearly six through prudent management,” he stated.

Another major concern raised by the union is the reported directive for Aero Contractors to remit its internally generated revenue to AMCON, a move it said could hinder the airline’s ability to reinvest in operations and expansion.

“AMCON has requested that Aero Contractors remit its saved funds to its coffers, rather than allowing the company to reinvest in expansion and turnaround initiatives,” the union said.

The union warned that such a directive, if implemented, could weaken the airline’s financial position and limit its capacity to compete effectively within the aviation sector.

As part of its recommendations, NUATE called on the Federal Government and relevant regulatory authorities to compel AMCON to divest its shares in Aero Contractors through the stock market, allowing for a more professional and market-driven management structure.

“We respectfully request that AMCON divest its shares in Aero Contractors through the stock market to allow for professional and market-driven management,” Konye said.

The union maintained that a transition to private sector-led management would enhance efficiency, improve governance, and attract the investment needed to stabilise and grow the airline.

In addition, NUATE appealed for fiscal support measures, including tax waivers and financial relief, to help the airline navigate its current challenges and strengthen its recovery prospects.

“We respectfully request that the appropriate authorities grant Aero Contractors Company waivers and relief on tax liabilities to support its recovery and growth,” the statement noted.

Industry analysts say the concerns raised by the union highlight broader issues within Nigeria’s aviation sector, including funding constraints, regulatory challenges, and the need for technical expertise in airline management.

They noted that sustained government involvement in commercial aviation operations without adequate industry knowledge could create inefficiencies and hinder growth.

Experts also stressed the importance of establishing a clear governance framework that balances public interest with operational independence, particularly for airlines undergoing restructuring or recovery.

The aviation sector in Nigeria continues to face multiple headwinds, including high operating costs, foreign exchange constraints, and infrastructure limitations, all of which have placed pressure on airlines’ profitability and sustainability.

Stakeholders have therefore emphasised the need for coordinated policy actions to support the industry, including improved access to financing, regulatory stability, and investment in aviation infrastructure.

The union insisted that addressing the issues surrounding Aero Contractors is critical not only for the airline’s survival but also for protecting jobs and maintaining confidence in the aviation sector.

It warned that failure to take corrective action could have far-reaching implications for workers, investors, and the broader economy, given the strategic role of aviation in national development.

Efforts to obtain a response from AMCON were unsuccessful, as the corporation’s spokesperson, Jude Nwauzor, did not respond to calls or messages seeking comment on the allegations.

The union reiterated its call for urgent intervention, stressing that timely and decisive action is necessary to safeguard the future of Aero Contractors and ensure stability within Nigeria’s aviation industry.