Wednesday, May 12, 2010
AERO NEEDS TO BE SUPPORTED
1-aero, is eligible for bailout considering its ownership and partnership with reputable helicopter company. Also it is a schedule operator with the second largest network and market. It is the biggest service provider to oil companies that are the backbone of Nigerian economy.It is still operating flights and not totally grounded. If they cannot resolve the issues quickly the government should take over the company temporarily while they source for interim managers and new investors.2-the government fund and methods of disbursement is sketchy so I can’t comment on it. I am actually looking forward to funds from other sources then backed by the government considering the excellent track record of the airline. I think the oil companies should invest and an insider like Capt Olumide be invited to assist in the restructuring. 3- Aero initiated, though surprisingly considering their business structure, the process of lowering domestic fares through the internet sales of ticket.It has generally attracted reluctant flyers and taken some people of the road. Also Nigerians and non Nigerians can now buy domestic tickets from any where in the world with just a click of the mouse. If aero goes down fares will go up, their will be some distortions in the oil industry which may affect oil price internationally.The Nigerian aviation image and heritage will be further dented with the acronym liquidation considering that will be the 4th carrier within a year, which makes us a very unstable country in the committee of civil aviation nations, when small Tanzania can have a profitable carrier called precision air who operates mainly with props.
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