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Arik Air In Big Financial Trouble?  
User currently offlineairbuske From United States of America, joined Jun 2007, 466 posts, RR: 0
Posted (3 years 7 months 2 days 23 hours ago) and read 14961 times:

http://pmnewsnigeria.com/2010/09/13/...ik-air-issues-dud-cheques-to-ncaa/

Fair use:

"Several media reports have suggested that Arik Air is heavily indebted and might soon go under, but the airline has repeatedly denied that it is broke.

Reports have suggested that Arik Air owes several billions of naira to banks and aviation agencies."

A little more research on the internet will yield several articles about:
- how the entire Arik fleet was grounded for several hours due to non-payment of navigational fees to the NCAA
- Arik employees not getting paid on time
- suppliers refusing to sell anything to Arik on credit
- airplanes being returned to the lessors with large sums of money owed

Can anyone confirm? Everything about Arik has always been smoke and mirrors for me.

38 replies: All unread, showing first 25:
 
User currently offlinessublyme From United States of America, joined Dec 2008, 515 posts, RR: 0
Reply 1, posted (3 years 7 months 2 days 20 hours ago) and read 14689 times:

Arik definitely does appear to be experiencing financial hardship.

Here is a follow-on to your link:

http://pmnewsnigeria.com/2010/09/14/...-air-blames-ncaa-over-dud-cheques/


User currently offlineDeltaRules From United States of America, joined Sep 2001, 3698 posts, RR: 9
Reply 2, posted (3 years 7 months 2 days 20 hours ago) and read 14651 times:

One of my friends is (was?) a CRJ-900 pilot for Arik & he's saying on Facebook that he's headed back to the US for good. Not sure, but I'd figure that may be related to their situation.


Let's Kick the Tires & Light the Fires!!
User currently offlinecrownvic From United States of America, joined Oct 2004, 1795 posts, RR: 5
Reply 3, posted (3 years 7 months 2 days 18 hours ago) and read 14422 times:

Is this really a surprise? I will probably get flamed for this, but look at the record for African carriers in all of aviation's history. Aside from SAA and Ethiopian, are there really any historically stable airlines in this region? African carriers are riddled with government corruption, unstable management, unstable borders and unstable currencies. Look at the upstart record for the past 10 years. Has anyone made it? None I recall...

User currently offlineRoyalAirMaroc From United Kingdom, joined Mar 2007, 187 posts, RR: 0
Reply 4, posted (3 years 7 months 2 days 12 hours ago) and read 13408 times:

Quoting crownvic (Reply 3):
but look at the record for African carriers in all of aviation's history

Relatively successful African airlines: Tunis Air, Air Algerie, Royal Air Maroc, Egypt Air, Ethiopian, SAA, Jet4u, TAAG (?), and im sure there are still others.



Life is a Journey, One Which I hope will include alot of Flights !! =]
User currently offlineFlighty From United States of America, joined Apr 2007, 8203 posts, RR: 3
Reply 5, posted (3 years 7 months 2 days 12 hours ago) and read 13242 times:

We might add Kenya Airways to the list. Otherwise that is pretty complete.

User currently offlineFlighty From United States of America, joined Apr 2007, 8203 posts, RR: 3
Reply 6, posted (3 years 7 months 2 days 12 hours ago) and read 13205 times:

Quoting crownvic (Reply 3):
African carriers are riddled with government corruption, unstable management, unstable borders and unstable currencies. Look at the upstart record for the past 10 years. Has anyone made it? None I recall...

Maybe the conditions favor more erratic airlines. An unscheduled airline is harder to shake down (they fly away!) so they might survive better in certain African political areas. A stable carrier would be attacked by government ministers because it is so visible. Just a thought.


User currently offlineSA7700 From South Africa, joined Dec 2003, 3432 posts, RR: 26
Reply 7, posted (3 years 7 months 2 days 12 hours ago) and read 13190 times:
AIRLINERS.NET CREW
HEAD MODERATOR

Forgive me for going slightly off-topic here...

Quoting RoyalAirMaroc (Reply 4):
successful African airlines:

You can also add BA Comair (South Africa) to that list.

Quoting crownvic (Reply 3):
Look at the upstart record for the past 10 years. Has anyone made it? None I recall...

Kulula ( MN ) and 1Time ( 1T ) were started up within the last 10 years and seems to be doing very well. Mango ( JE ) is another example - albeit the LCC offshoot of state-run SA.


Rgds

SA7700



When you are doing stuff that nobody has done before, there is no manual – Kevin McCloud (Grand Designs)
User currently offlineSwallow From Uganda, joined Jul 2007, 554 posts, RR: 0
Reply 8, posted (3 years 7 months 2 days 11 hours ago) and read 12832 times:

Add Air Mauritius, Air Namibia to the list

I think the perception is that of Africa as a failed continent, and one example of a failure reinforces the negative narrative and leads to generalizations about the rest of the continent.

[Edited 2010-09-19 04:12:14]


The grass is greener where you water it
User currently offlineviasa From Switzerland, joined Jun 2005, 1853 posts, RR: 7
Reply 9, posted (3 years 7 months 2 days 11 hours ago) and read 12773 times:

Since long time a DHC-8-400 is stored in Toronto (YZD), I'm sure that this is a NTU. Than there are 3 Boeing 737-700s stored in Southend (SEN) [5N-MJC, 5N-MJI and 5N-MJJ] and I heard that the new delivered A330-200 [5N-EIA] was returned to the lessor.

Was (or is) this airline really here for get money or only to monetary wash?


User currently offlineSurfandSnow From United States of America, joined Jan 2009, 2797 posts, RR: 30
Reply 10, posted (3 years 7 months 2 days 11 hours ago) and read 12763 times:

Who is Arik Air?*

Outside of a few a.net fans, I don't think anyone would miss an airline they had never even heard of.

Maybe if they go under Air Nigeria (formerly Virgin Nigeria) can get back on their feet and start flying long-haul again.


*I personally know the answer, but even the most seasoned global travelers probably do not!



Flying in the middle seat of coach is much better than not flying at all!
User currently offlinePe@rson From United Kingdom, joined Jan 2001, 19097 posts, RR: 53
Reply 11, posted (3 years 7 months 2 days 10 hours ago) and read 12623 times:

Quoting SurfandSnow (Reply 10):

Outside of a few a.net fans, I don't think anyone would miss an airline they had never even heard of.

I am sure that relevant (i.e., those that can afford to fly) Nigerians and other West African citizens (i.e, in cities that Arik serves), in addition to relevant people (i.e., of Nigerian/West African descent, or those travelling to/from for business purposes) in NYC, LON, and JNB have heard of it.

[Edited 2010-09-19 03:43:42]


"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
User currently offlineChiad From Norway, joined May 2006, 1079 posts, RR: 0
Reply 12, posted (3 years 7 months 2 days 8 hours ago) and read 11749 times:

Quoting airbuske (Thread starter):
- suppliers refusing to sell anything to Arik on credit

Hmmm .. then is doesn't look good for the 27 Boeings on order (incl. 4 B748i on option).
I think there are non other African carrier that have the B748, or A380, in the pipeline.


User currently offlinevv701 From United Kingdom, joined Aug 2005, 7257 posts, RR: 17
Reply 13, posted (3 years 7 months 2 days 8 hours ago) and read 11735 times:

Quoting SA7700 (Reply 7):
You can also add BA Comair (South Africa) to that list.

  

Founded in 1946 as Commercial Air Services, they have recorded a profit in every year since. There are a lot of North American and European airlines that might be envious of such a record.


User currently offlineSwallow From Uganda, joined Jul 2007, 554 posts, RR: 0
Reply 14, posted (3 years 7 months 2 days 8 hours ago) and read 11697 times:

If Arik is going under, it leaves SA with a juicy monopoly on the LOS-JNB route, one that requires First Class, a product that was phased out on other SA routes.


The grass is greener where you water it
User currently offlineairbazar From United States of America, joined Sep 2003, 7874 posts, RR: 10
Reply 15, posted (3 years 7 months 2 days 8 hours ago) and read 11664 times:

Quoting SurfandSnow (Reply 10):
Who is Arik Air?*

Outside of a few a.net fans, I don't think anyone would miss an airline they had never even heard of.

They are a well-known airline in Africa, mainly West Africa, which is their main market. I'm sure someone living in West Africa would have the same comment regarding the likes of Spirit Airlines or Jet Blue, because none of those airlines are of any relevance to them.


User currently offlineLJ From Netherlands, joined Nov 1999, 4366 posts, RR: 0
Reply 16, posted (3 years 7 months 2 days 7 hours ago) and read 11321 times:

Coming back to Arik. Why did they run into trouble? Did they grow too fast? They seem to be doing much better than all the other Nigerian airlines (past and present).

[Edited 2010-09-19 07:24:15 by srbmod]

User currently offlinedxer1974 From United States of America, joined Jul 2010, 33 posts, RR: 0
Reply 17, posted (3 years 7 months 2 days 7 hours ago) and read 11262 times:

I think Arik was featured in Airways Magazine a few months ago right? That magazine seems to be the kiss of death for new and emerging airlines. If Arik does stop flying the leasing companies will have quite a time repoing their assets.


"That's the thing about the 707, it can do everything but read it" Joe Patroni
User currently offlinejfk777 From United States of America, joined Aug 2006, 8090 posts, RR: 7
Reply 18, posted (3 years 7 months 2 days 6 hours ago) and read 10998 times:
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Quoting LJ (Reply 16):
Coming back to Arik. Why did they run into trouble? Did they grow too fast? They seem to be doing much better than all the other Nigerian airlines (past and present).

This airline was started by a man who was recently knighted the Queen Elizabeth II and is called "SIR" XXXXX. He started this airline because he was so disgusted by by existing Nigerian airlines. Where are the millions he supportted the airline with and his fortune ? OR is he just going to let it go under ?

Are domestic fares in Nigeria very low money loosers ?


User currently offlineusflyer msp From United States of America, joined May 2000, 2026 posts, RR: 0
Reply 19, posted (3 years 7 months 2 days 6 hours ago) and read 10882 times:

Arik's financing and strategy always seemed a bit "shady" and non-transparent to me. I have had rumours that they were tied to government graft from the oil industry. It would be so awesome to have a world class West African airline but Arik's tendency to start questionable routes and operate every aircraft type known to man always puzzled me. So I am not very surprised that they are having difficulties.

User currently offlineAF022 From France, joined Dec 2003, 2135 posts, RR: 1
Reply 20, posted (3 years 7 months 2 days 5 hours ago) and read 10350 times:

Quoting viasa (Reply 9):
Since long time a DHC-8-400 is stored in Toronto (YZD), I'm sure that this is a NTU. Than there are 3 Boeing 737-700s stored in Southend (SEN) [5N-MJC, 5N-MJI and 5N-MJJ] and I heard that the new delivered A330-200 [5N-EIA] was returned to the lessor.

Are these aircraft owned by ARIK? Aren't there other airlines out there ready to scoop them up?


User currently offlinecontrails15 From United States of America, joined Oct 2008, 1181 posts, RR: 0
Reply 21, posted (3 years 7 months 2 days 5 hours ago) and read 10214 times:

I always see there A340 come in to JFK every morning was curious to how well its doing


Giants football!!!!!!!!!!!!!!!!!!!!!!!!
User currently onlineeinsteinboricua From Puerto Rico, joined Apr 2010, 2677 posts, RR: 8
Reply 22, posted (3 years 7 months 2 days 4 hours ago) and read 10008 times:

Quoting Chiad (Reply 12):
(incl. 4 B748i on option)

They still haven't firmed up that order. It was a LOI...or did I miss something?



"You haven't seen a tree until you've seen its shadow from the sky."
User currently offlineSwallow From Uganda, joined Jul 2007, 554 posts, RR: 0
Reply 23, posted (3 years 7 months 2 days 4 hours ago) and read 9849 times:

Quoting LJ (Reply 16):
Coming back to Arik. Why did they run into trouble?

Because they flew 345's   

Seriously, it is sad they are having cash flow problems. A country the size of Nigeria deserves a decent well-run airline



The grass is greener where you water it
User currently offlineChiad From Norway, joined May 2006, 1079 posts, RR: 0
Reply 24, posted (3 years 7 months 2 days 1 hour ago) and read 8969 times:

Quoting einsteinboricua (Reply 22):
They still haven't firmed up that order. It was a LOI...or did I miss something?

Like I said ... on option.
Anyways ... it's doubtful it will ever be firmed up if their financial troubles proves to be this serious.


25 RobK : The A330 5N-EIA is in service with them. I heard it operating ARA103 two days ago and the crew gave the registration.
26 Post contains images MaverickM11 : I don't think you're that far off. From a route planning perspective, they announce flights only weeks before they start, and then in the case of LHR
27 Alibo5NGN : Credit squeeze in Nigeria. Arik Air operations is extremely dependent upon local Nigerian Banks to finance their rapid aircraft acquisition. If you l
28 MaverickM11 : Which, on a 345 = almost certainly hemorraging money on the route
29 lhr380 : I was very confused seeing them operate a 737 into LHR!! I could not understand why theyvsent such a small aircraft on such a busy route??
30 contrails15 : Holy sh@t. 35% is insane. Doesn't look good. Thats a very expensive route to run and that plane sitting on the hard stand all day doesn't help. I'm n
31 Flying Belgian : Are their A330 only operating on the LOS-JNB-LOS leg ? I thought it was seen from time to time in LHR ? Cheers,
32 kmz : so according to Wikipedia, they have 2 A345s and 1 A332. IIRC these are all Kingsfisher a/c (at least the A345s are) which were never delivered to Kin
33 ENU : The A332 is leased from Amentum Capital (Air Comet ntu). Initially, Arik Air would take three A345s from Kingfisher, but the A332 appears to be a bet
34 jfk777 : Has anything imporoved for Arik in the last month ? is it still in Business ?
35 Swallow : Arik Air is still operating, with W3 103 landing in JNB this morning at 0625 hrs
36 teme82 : yeah that was the Airliner World magazine.. I got it at home. It was really positive article about Arik. As you said it seems that the magazine is de
37 Post contains links LondonCity : Yes. I remember it ran an enthusiastic article on a tiny UK commuter airline Varsity Express which planned to operate between Oxford and Edinburgh. B
38 kaitak : My thoughts exactly; the problem is that once these aircraft land at certain airports, they can be repossessed. It would be sad to see Arik collapse,
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