N33bn Debt: Aero, Oceanic Bank Reach Agreement
Nigeria’s major airline, Aero Contractors announced yesterday that it has reached agreement to restructure its loans of about N33 billion ($220 million) with Oceanic Bank on “more viable terms” for the benefit of the two organisations and has also ceded its ownership to be wholly owned by the Ibru Group.
Before now, Canada Helicopters Company (CHC) owned 40 per cent stake in Aero, but according to a statement from the airline, the Ibrus now own the airline 100 per cent.
The statement also said that CHC will continue its technical relationship with Aero and maintain its aircraft both in scheduled passenger operations and rotary operations, which service the nation’s oil industry.
“Aero has consolidated and restructured all of its loans with Oceanic Bank on more viable terms and conditions that both parties deemed to be in their best commercial interests. Aero and CHC Helicopter Corporation (“CHC”) recently executed a series of 10-year agreements covering everything from helicopter leasing via personnel services to maintenance, repair and overhaul,” the statement said.
It noted that the restructuring would enable Aero to focus on its core business of delivering superior service to its customers.
“In addition, Aero now has a stable and sustainable platform from which it will grow its already successful Scheduled and Chartered Services businesses.”
Aero said that over the last eight months it has also launched a new business model in its scheduled services side that focuses on innovative use of technology to improve customer experience.
“As a result, Aero has now become the first e-airline in Nigeria, pioneering online bookings, payments, and check-in in the West African market. Aero is committed to building on these achievements through innovation, transparency and an unrelenting focus on its customers.”
Shaf Syed, Managing Director of Aero also said: “We are excited with these developments that allow us to focus on our future growth and expansion. I would especially like to thank all of our customers for their continued loyalty, and CHC, Oceanic Bank and the aviation regulatory bodies for their patience and support. Last but not least, I want to extend heartfelt thanks to our great compliment of staff that have made all this possible through their hard work and dedication. With this restructuring, we are confident that Aero will be able to further enhance the reliable service for which our illustrious brand ultimately stands for.”
Captain Akin George, Head of Flight Operations said in the statement, “Aero’s 50-year history as the first, the leading, and now 100% owned Nigerian Aviation Company, carries with it a lot of responsibility and the humble obligation to remain loyal servants to the meaningful development of the Nigerian aviation industry, its stakeholders and the Nigerian economy at large.
George assured that Aero would achieve this by judicious use of its infrastructure, described as second to none, and the continuing stringent application of industry-leading safety standards.
“We are extremely confident that we are the best positioned company in Nigeria to deliver on charter contracts and to provide reliable scheduled services to the Nigerian flying public.”
Few months ago Aero’s operations were threatened as it disagreed with Oceanic Bank over the aforementioned debts but for the intervention of the Minister of Aviation, Mrs. Fidelia Njeze and other stakeholders the airline would have stopped operation.
The propeller operations of the company briefly stopped its services as CHC was deprived of needed funds but resumed after some kind of agreement was reached
With this restructuring the more than 1,200 workers of Aero whose jobs were threatened and were anxious about their future would now sleep easy.