Aero continues operations on 737 aircraft
Aero Contractors, one of the oldest indigenous carriers in the country, said it will continue flight services on its 737 aircraft, pending the resolution of the differences between the airline and its financier, Oceanic Bank.
This is coming after an arbitration team led by the minister of aviation, Fidelia Njeze, in Abuja last week, urged both parties to find an amicable solution to their quarrel within one week.
"Aero and Oceanic bank have been invited back to Abuja on May 7, 2010 for the finalization of the tripartite agreement with the minister," said an official of the carrier who prefers anonymity.
History
Last week, the airline disclosed that it may halt its operations following the historical debt of about $200 million owed to Oceanic bank. "Aero has been locked in discussions with its bankers for some months now and it has now reached a point where it is difficult for Aero to operate on these terms," the carrier stated. "However, they (Oceanic) have been unable to agree on a resolution that will allow Aero to continue trading as a going concern."
Meanwhile, in a swift reaction to the airline's statements, the bank refuted allegations that it has frozen the carrier's accounts, stressing that Aero is operating the account.
"Aero Contractors account is not frozen and they are still drawing on the account," said Oceanic Bank's chief executive officer, John Aboh, in a statement.
He said although the airline's facilities with the bank expired more than four months ago the management of Aero have not accepted a fresh offer stretching the outstanding facilities for a longer tenor and at a reduced rate.
Shaf Syed, chief executive officer of Aero, however, assured passengers that the carrier will continue to operate safely and on time to her destinations, adding that it has resumed its helicopter operations, which was suspended due to the recent fracas with the Oceanic bank.
"We are doing all possible to resume our full schedule," he said. "In conjunction with this, Aero has resumed its operations in support of the Oil and Gas with the full cooperation of CHC (Canadian Helicopter Company)."
It would be recalled that Aero Contractors commenced the online sales of reduced promotional airfares varying from N7,000 to N3,000 across all domestic routes, which it covers for one way trips.
The airline, which is notable for the introduction of online check-in of passengers, recently introduced an advanced pricing strategy and price optimisation application called Aviator, which has a capacity of making available 26 different types of fare on every flight for passengers.
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