Africa’s aviation giant, Ethiopian Air, has submitted a bid to buy one of Nigeria’s struggling airlines, Arik Air.
The Managing Director, International Services for Ethiopian Air, Esayas Wolde Mariam, made this known while speaking on the Cable News Network (CNN) on Thursday.
Mr. Mariam said his company was ready to buy majority stakes in Arik Air, which was one of the best airlines in Nigeria before it went into near insolvency.
He said the Nigerian market has a vast opportunity for investment and growth, adding that Ethiopian Air was already talking with the Asset Management Company of Nigeria (AMCON).
NEXT EDITION learnt AMCON is under pressure to sell off assets on its books ahead of its 2020 winding down date.
The asset company is said to have spent billions to keep Arik Air afloat after it took over the operations on February 9.
With the offer to buy a majority of shares from the distressed airline, AMCON may likely hand over it over to Ethiopian Air.
Ethiopian Airline will gain a foothold in the Nigerian market if its bid is accepted.
Arik Air is one of the largest airlines in the country, carrying almost 50 percent of the country’s passengers.
However, it is said to owe over N300 billion to domestic and foreign creditors including regulatory agencies in Nigeria.
Ethiopian Airways was founded on December 21, 1945, and is wholly owned by the Ethiopian Government.
The airline flies several routes within and outside Africa including Washington and Paris.
The bid for Arik Air is coming just after German financial giant, Allianz, announced yesterday that it had bought 98 percent of a Nigerian Insurance firm, Ensure, as part of its plans to make inroads into the Nigerian market.
