Arik Air drops London, Jo'burg as liquidity constraints bite

Having assumed control of the airline late last week, the Asset Management Corporation of Nigeria (AMCON) says Arik Air (W3, Lagos) requires over NGN10 billion naira (USD31.7 million at the official bank rate) for it to resume full and uninterrupted operations.
The state-owned firm's Head of the Corporate Communications, Jude Nwauzor, said in a statement that the “mess” met on ground was actually greater than anticipated.
“It appears that unlike previously recorded, Arik has debts in excess of NGN300 billion (USD951 million at the official bank rate), especially with some banks, excluding fuel suppliers, lessors and maintenance companies," he said adding that all creditors' claims will be addressed in due course.
AMCON last week blamed Arik Air's persistent financial woes on its "bad corporate governance".

Since moving into position, it says insurance cover for Arik's aircraft, which were to have expired on Sunday, 12 February, has been paid with its aircraft gradually resuming flights. The airline's New York JFK service was suspended this past week.

AMCON states that of Arik's fleet of two A330-200s (one of which is undergoing MRO in Perpignan and the other one parked at Lagos), nine B737-700s, four B737-800s, four CRJ-900s, one CRJ-1000, and four Dash 8-400s, only ten aircraft are commercially serviceable. As such, while the Federal Government plans to return all aircraft stored abroad to Nigeria, Arik Air will temporarily scale-back its operations to ensure what AMCON said was "efficient services and put an end to the era of flight cancellations".
The decision has since been taken to suspend the carrier's flights to London Heathrow and Johannesburg O.R. Tambo in favor of focusing on the West African market.

”The strategic business decision is meant to realign our operations and refocus on satisfying our domestic and West Africa and other international passengers," Nwauzor added. “It will also present Arik with excellent opportunity to engage and discuss with creditors who have become restive since the intervention and have also understandably exhausted their patience due to non-payment of accumulated debt and non-performance on services and contracts.”
Arik is now managed by Capt. Roy Ukpebo Ilegbodu under the receivership of Oluseye Opasanya, SAN.

Arik Air replaces Boeing 747s with 787s

Nigeria’s Arik Air has scrapped a longstanding order for two Boeing 747-8Is, replacing it with a pair of Boeing 787-9s.

The change means a further shrinking of the already slim orderbook for the 747-8. Most of the 747s ordered to date have been the -8 freighter version, as airlines increasingly turn to “big twins” for long-haul passenger services.

Boeing has reduced the 747-8 production rate to 0.5 aircraft a month as it fulfills remaining orders.

Arik Air’s order for the 747-8I dates back to 2011.

The two 787-9s are worth $529 million at book value. A regional source, who requested not to be identified, told ATW the 787-9 “makes much better sense” than the 747-8I for Arik Air, notably on routes to the US and UK.

Boeing said the delivery dates were a matter for the customer; an Arik Air representative said she did not have that information, but understood deliveries were “not imminent.”

According to Arik Air’s website, the Nigerian flag carrier’s long-haul fleet comprises two Airbus A340-500s and two A330-200s. Its short- to medium-haul services are operated by a mixed batch of 10 Boeing 737-700s and -800s, while regional routes are operated by four Bombardier CRJ900s, a single -1000 and two Q400s.

Alan Dron alandron@adepteditorial.com

ATW

Nigeria's Arik Air Temporarily Suspends Operations

Libby George, Camillus Eboh, Alexis Akwagyiram, ReutersReuters/Akintunde Akinleye)

Arik Air, Nigeria's largest airline, cancelled all flights on Tuesday in what it called a temporary disruption related to insurance renewal.
While the company initially warned the disruption was likely to continue for the next few days as it awaited approval from national insurance commission NAICOM to renew its insurance with a new company, a spokesman later told Reuters it would resume flights from 11:00 a.m. on Wednesday.
"All issues have been resolved," spokesman Ola Adebanji said, declining to comment on how it had resolved its insurance problem or why it had changed insurance companies.
Arik, which flies to London, New York and Johannesburg, also has a maintenance contract with Germany's Lufthansa.
"We are fully committed to returning to our normal operations and minimize any unfortunate inconvenience to our passengers," Arik Chief Executive Michael Arumemi-Ikhide said in a statement on Tuesday.

Nigerian airlines and international carriers operating within the country have struggled with a plunge in the local currency, the naira, that has made it difficult to get U.S. dollars to buy jet fuel and also to remain profitable as passengers pay in naira. The nation's first recession in two decades is also squeezing profits.

James Daudu, deputy director at the country's aviation ministry, said that while jet fuel prices are deregulated, and therefore outside government control, the Minister of State for Aviation was working with the Ministry of Petroleum Resources to see if "interventions" in the sector were possible.




"It would be a whole sphere of intervention, if possible, from the Central Bank of Nigeria to the Ministry of Petroleum Resources," he said.




Two other local carriers, Aero Contractors and First Nation, recently suspended operations, though the government said both would eventually reopen.




International carriers United and Iberia stopped their services to Nigeria earlier this year, while others have begun refuelling abroad to avoid jet fuel shortages. International airlines have complained about the difficulty of repatriating millions of dollars' worth of fares sold in local currency.

ARIK AIR - B737-300 - 5N-MJA

Ton Jochems - NWI

Nigeria's Arik Air to start Dubai flights from late July

Arik Air will début its maiden Middle Eastern flights when it launches a five times weekly Lagos to Dubai Int'l via Abuja service beginning July 28.
Airline Route reports the flights will operate on-board an A330-200
Photo:PMB / FPP - LHR

Arik Air operates 1st Nigeria registered aircraft to US in 20 years

Arik Air, West and Central Africa’s largest commercial airline, has achieved yet another milestone in Nigerian aviation, operating the first Nigerian registered commercial aircraft to the United States of America in two decades.
Photo:Arik

Arik Air adding A330-200 as third widebody aircraft again

Arik Air is about to take delivery of an ex-Kingfisher Airlines A330-200 (c/n 891) currently being prepared for the largest Nigerian carrier at Dublin International. Arik had previously operated an A330-200 that had then however been repossessed by its lessor due to a dispute over leasing fees. It currently uses two A340-500 wet-leased from long-time partner HiFly for its routes from Lagos to London Heathrow and New York John F. Kennedy International

Arik Air is expected to take delivery of four new A330-300s from September onwards that were originally planned to be leased to Jet Airways

Arik Air Orders Two Boeing 747-8 Intercontinentals

WASHINGTON, D.C., Oct. 6, 2011 – Boeing [NYSE: BA] and Nigeria’s Arik Air today announced a deal for two 747-8 Intercontinental airplanes. The order is valued at $635 million at list prices and was previously attributed to an unidentified customer on Boeing’s website.

Arik Air is Nigeria's fastest-growing privately owned airline operating a large fleet of Boeing Next-Generation 737s and serves more than 22 domestic, six regional and three long-haul routes. The airline plans to use the 747-8 on its key long-haul routes.

BOEING