The Federal Government has taken over the management of Arik Airways and announced lifeline to help keep the distressed company afloat.

The FG has announced a new leadership for the airline as it takes over its management.

Premium Times reports that the management of the Asset Management Corporation of Nigeria (AMCON) explained that the government’s decision is in line with its desire to sanitize in the country’s aviation sector to prevent a major catastrophe in the country.

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“The development will afford Arik Airlines, which is the largest local carrier in the country, to go back to regular and undisrupted operations, avoid job losses, protect investors and stakeholder funds as well as ensure safety and stability in the already challenged aviation sector,” AMCON spokesperson Jude Nwauzor said.

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Under the new arrangement, the airline would now be managed by a veteran aviation expert Roy Ilegbodu under the receivership of a senior advocate of Nigeria Oluseye Opasanya.

Arik has been facing financial challenges for some time even though the management often denied the fact.

Recall that in late December 2016, the Nigerian Civil Aviation Authority announced it had fined Arik Air N6m over its passengers’ complaints of delay and inability of the airline to ferry their luggage from London to Lagos from the 2nd, 3rd and 4th of December, 2016.

The NCAA also directed the airline to pay affected passenger, the sum of $150 each as compensation for inconveniences suffered as a result of the delayed arrival of their luggage, within 30 days of the date of the letter.