Rani
22nd May 2003, 21:22
FG Liquidates Nigeria Airways
From Kola Ologbondiyan in Abuja and Ndubuisi Francis in Lagos
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As President Olusegun Obasanjo yesterday formally closed the weekly Federal Executive Coun-cil (FEC) sessions, the council in its last sitting approved the liquidation of the national carrier, the Nigeria Airways.
Information and National Orientation Minister, Prof. Jerry Gana, who briefed newsmen on the outcome of the council meeting which lasted for about six hours, said the council took the "difficult" decision on the Airways after all efforts to resuscitate it failed.
"Following a memo from the Ministry of Aviation, council has approved the voluntary liquidation of Nigeria Airways. Nigeria Airways is hereby liquidated.
"We found it extremely sad to liquidate it. We tried to rescue it but each attempt has failed. The more we tried to rescue it, the more it has failed.
"We have serious issues of debt profile liquidation threats by debtors and depletion of its fleet. In the interest of Nigerian public, public funds should not be put in Nigeria Airways.
"The National Council on Privatisation, under the leadership of Vice President Atiku Abubakar has been directed to work out how to establish a private airline that can be the national carrier within the next one month. Nigerians are sad that Nigeria Airways is gone," Gana said.
THISDAY gathered that Obasanjo, shortly after the FEC meeting, met with some union leaders, including the President of the Nigeria Labour Congress (NLC), Mr. Adams Oshio-mhole, and promised them that labour-related issues would be sorted out by the Bureau of Public Enterprises(BPE).
At the meeting, Obasanjo, it was disclosed, was evasive on the court injunction restraining the Federal Government and its agents from liquidating the airline.
Workers of the airline had gone to court and obtained an injunction restraining the Federal Government from liquidating the airline.
Efforts to get the reactions of the union leaders on the liquidatioin yesterday proved abortive as they were said to be in Abuja after their meeting with Obasanjo.
Aviation workers had last weekend threatened to shut the nation's airspace if the planned liquidation exercise was not halted until all labour-related issues were resolved.
Reacting to the reported liquidation yesterday in a telephone interview, the General Secretary/Founder of the Nigerian Aviation Safety Initiative, Capt. Jerry Agbeye-gbe said if the liquidation is indeed was true it was a dangerous signal for democracy.
Agbeyegbe said if the government could ignore a court injunction restraining it from liquidating Nigeria Airways, then, flouting court orders indeed portend grave dangers for democracy.
"It is an exercise in futility because there is a court injunction on the ground, because if they fail to heed it, it is a danger to democracy", he said.
Agbeyegbe said the workers may head back to the law court, adding that there might be other reactions considering their threat last week.
Aviation Minister, Dr (Mrs) Kema Chikwe had recently announced that Nigeria Airways would be liquidated as a premptive measure to be adopted when there are indications that the current case against the airline at a London court would lead to its liquidation.
Chikwe stated that allowing the London court to wind up the company would amount to the loss of its assets. She added that it would be better to adopt a voluntary liquidation when it was clear that the court's verdict would tilt towards folding up the company.
The High Court of Justice in London is currently trying to apply the Insolvency Act of 1986, to wind up the operations of Nigeria Airways following the huge debt incurred by the airline which it has refused to offset.
The airline is owing the British Airports Authority (BAA) œ156,835.00, Heathrow Park Hotel œ75,000.00, Her Majesty's Inland Revenue Service œ217, 415.57, Her Majesty's Custom Service œ135,000.00 and the Staff of London Station œ683,844.82.
The beleaguered airline is also indebted to ASECNA to the tune of USD1,000000.00, National Oil and Chemical Marketing Company USD 438,008.00.
Only Tuesday, Air Atlanta Icelanic, an Icelan-based aircraft leasing company also sued Nigeria Airways over default in paying debts accruing from the leasing of two aircarfts from it by the national carrier.
From Kola Ologbondiyan in Abuja and Ndubuisi Francis in Lagos
--------------------------------------------------------------------------------
As President Olusegun Obasanjo yesterday formally closed the weekly Federal Executive Coun-cil (FEC) sessions, the council in its last sitting approved the liquidation of the national carrier, the Nigeria Airways.
Information and National Orientation Minister, Prof. Jerry Gana, who briefed newsmen on the outcome of the council meeting which lasted for about six hours, said the council took the "difficult" decision on the Airways after all efforts to resuscitate it failed.
"Following a memo from the Ministry of Aviation, council has approved the voluntary liquidation of Nigeria Airways. Nigeria Airways is hereby liquidated.
"We found it extremely sad to liquidate it. We tried to rescue it but each attempt has failed. The more we tried to rescue it, the more it has failed.
"We have serious issues of debt profile liquidation threats by debtors and depletion of its fleet. In the interest of Nigerian public, public funds should not be put in Nigeria Airways.
"The National Council on Privatisation, under the leadership of Vice President Atiku Abubakar has been directed to work out how to establish a private airline that can be the national carrier within the next one month. Nigerians are sad that Nigeria Airways is gone," Gana said.
THISDAY gathered that Obasanjo, shortly after the FEC meeting, met with some union leaders, including the President of the Nigeria Labour Congress (NLC), Mr. Adams Oshio-mhole, and promised them that labour-related issues would be sorted out by the Bureau of Public Enterprises(BPE).
At the meeting, Obasanjo, it was disclosed, was evasive on the court injunction restraining the Federal Government and its agents from liquidating the airline.
Workers of the airline had gone to court and obtained an injunction restraining the Federal Government from liquidating the airline.
Efforts to get the reactions of the union leaders on the liquidatioin yesterday proved abortive as they were said to be in Abuja after their meeting with Obasanjo.
Aviation workers had last weekend threatened to shut the nation's airspace if the planned liquidation exercise was not halted until all labour-related issues were resolved.
Reacting to the reported liquidation yesterday in a telephone interview, the General Secretary/Founder of the Nigerian Aviation Safety Initiative, Capt. Jerry Agbeye-gbe said if the liquidation is indeed was true it was a dangerous signal for democracy.
Agbeyegbe said if the government could ignore a court injunction restraining it from liquidating Nigeria Airways, then, flouting court orders indeed portend grave dangers for democracy.
"It is an exercise in futility because there is a court injunction on the ground, because if they fail to heed it, it is a danger to democracy", he said.
Agbeyegbe said the workers may head back to the law court, adding that there might be other reactions considering their threat last week.
Aviation Minister, Dr (Mrs) Kema Chikwe had recently announced that Nigeria Airways would be liquidated as a premptive measure to be adopted when there are indications that the current case against the airline at a London court would lead to its liquidation.
Chikwe stated that allowing the London court to wind up the company would amount to the loss of its assets. She added that it would be better to adopt a voluntary liquidation when it was clear that the court's verdict would tilt towards folding up the company.
The High Court of Justice in London is currently trying to apply the Insolvency Act of 1986, to wind up the operations of Nigeria Airways following the huge debt incurred by the airline which it has refused to offset.
The airline is owing the British Airports Authority (BAA) œ156,835.00, Heathrow Park Hotel œ75,000.00, Her Majesty's Inland Revenue Service œ217, 415.57, Her Majesty's Custom Service œ135,000.00 and the Staff of London Station œ683,844.82.
The beleaguered airline is also indebted to ASECNA to the tune of USD1,000000.00, National Oil and Chemical Marketing Company USD 438,008.00.
Only Tuesday, Air Atlanta Icelanic, an Icelan-based aircraft leasing company also sued Nigeria Airways over default in paying debts accruing from the leasing of two aircarfts from it by the national carrier.