ADVERTISEMENT
  • The Membership Club
  • PT Hausa
  • About Us
  • Advert Rates
  • Careers
  • Contact Us
Friday, April 23, 2021
Premium Times Nigeria
  • Home
  • Gender
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Opinion
  • Health
    • COVID-19
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Features
    • Investigations
    • Interviews
    • Markets
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • #EndSARS Dashboard
    • Parliament Watch
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
  • Home
  • Gender
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Opinion
  • Health
    • COVID-19
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Features
    • Investigations
    • Interviews
    • Markets
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • #EndSARS Dashboard
    • Parliament Watch
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
Premium Times Nigeria
BUA Group Ad BUA Group Ad BUA Group Ad
ADVERTISEMENT
Arik Air

Arik Air. (Photo Credit: Punch)

COVID-19: Arik cuts salaries by 80%, places 90% of staff on leave without pay

byNicholas Ibekwe
April 24, 2020
3 min read

As the airline industry across the world continues to take a beating following the suspension of most local and international flights, Nigeria’s largest commercial airline, Arik Air, on Thursday informed staff it would cut the salaries of its employees by a whopping 80 per cent.

In an internal memo obtained by PREMIUM TIMES the airline’s Chief Executive Officer, Roy Ilegbodu, informed employees that the management of the company has also decided that at least 90 per cent of its workers will proceed on indefinite leave without pay from May 1. 2020.

When reached for comment, spokesperson of airline, Ola Banji, succinctly confirmed the decision but declined to give further details.

“All I can tell you now is that yes, it is true,” he said.

In the memo seen by PREMIUM TIMES, Mr Ilegbodu lamented that the outbreak of the pandemic has placed the company in an unimaginable financial strait that is unlikely to ease anytime soon.

He said the company revenue stream has plunged by 98 per cent and the financial downturn has been made worse by the drop in the value of the naira and the dip in the price of oil.

“To date, the situation created by the COVID-19 pandemic remains dire with a high level of uncertainty, even within medical circles regarding the containment of the pandemic. Although daily updates from a few countries seem to be encouraging,

our situation in Nigeria appears to be getting worse. With the current observed trend of events, it is prudent to lean on the assumption that the situation is likely to persist for a while longer.

“Of huge significance to us is that we have suffered a sharp decline of over 98% in our revenue streams since the suspension of our scheduled flights almost four weeks ago. Added to this is the rapid decline in the value of the Naira by over 35%

RelatedNews

It’s Fake: CAN, NSCIA say of document linking Pantami to Yakowa assassination plot

UPDATED : How Deby’s death in Chad may affect Nigeria’s security – FG

#EarthDay 2021: For every student enrolled in this American university, a tree is planted in Africa

Oyetola inaugurates committee to tackle illegal mining

against the benchmark and with oil prices now falling well below $15 per barrel, it is evident that we must, without further delay, take decisive action to preserve our organization,” he wrote.

As a result of these, the CEO said, the company has tried to save cost by renegotiating rates with its suppliers and contractors and has also “implemented contingency plans for staff and introduced operational support flexibility.”

He said though these measures have led to a reduction of expenditure, “the outlook for the near future is not encouraging and our current level of business simply cannot support our operations for much longer.”

TEXEM

“For this reason, to safeguard the survival of our organization, we are constrained to introduce additional measures to curtail our costs, as dictated by the turn of events.

“After careful deliberation and analyses, management has decided to implement an 80% pay cut for all members of staff across the entire organization for the month of April 2020. Furthermore, commencing from May 1st 2020, no less than 90% of our staff will proceed on leave without pay until further notice.”

He, however, explained the decision will be reviewed monthly and the company’s human resources department will keep workers informed about future decisions reached.

On Friday morning, employees of the airline subsequently received two memos from the company’s HR department. The first memo explained that during the compulsory leave, the company’s health insurance scheme (HMO) shall continue to run.

The second memo explained that while all staff have been placed on compulsory leave without pay, staff involved in the company’s charter operation were excluded from the restructuring.

The Asset Management Corporation of Nigeria (AMCON) took over Arik Air in February 2017 and the airline was subsequently placed in receivership, following its inability to repay debts in excess of N300 billion to AMCON and other creditors in Nigeria and around the world.

ADVERTISEMENT

Last October, the Managing Director and Chief Executive Officer of AMCON, Ahmed Kuru, told the Nigerian government to convert Arik Air into a national carrier.

Mr Kuru said his agency saved the airline from the brinks of certain collapse and that the National Assembly should ensure that the government leverages on the potential of the airline towards setting up a national carrier rather than trying to set up a new airline brand from scratch.

The global airline industry is one of the sectors most hit by the outbreak of the pandemic with major airlines across the world laying off workers and demanding government stimulus to remain operational after the pandemic.

Read the full Arik memo below.

WhatsApp Image 2020-04-24 at 10.23.10 AM
WhatsApp Image 2020-04-24 at 10.23.09 AM
WhatsApp Image 2020-04-24 at 10.23.11 AM
WhatsApp Image 2020-04-24 at 10.23.10 AM (1)
WhatsApp Image 2020-04-24 at 10.23.11 AM (1)
  • WhatsApp
  • Tweet
  • Email
  • Print
  • Telegram
  • More
  • Share on Tumblr
  • Pocket

Support PREMIUM TIMES' journalism of integrity and credibility

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.

Donate


TEXT AD: To advertise here . Call Willie +2347088095401...


JOIN THE CONVERSATION

  • Disqus (6)
premiumtimes



PT Mag Campaign AD

Previous Post

Coronavirus: WHO warns against stopping immunisation against other diseases

Next Post

Intellectually, Abba Kyari stood above all Buhari’s ministers, special advisers – Mamman Daura

Nicholas Ibekwe

Nicholas Ibekwe

Nicholas Ibekwe is PREMIUM TIMES' Head of Investigations. He is a graduate of English Language from the Lagos State University. He has a Master's in International Journalism from City University, London, United Kingdom. Nicholas, who is 2016 fellow of the World Press Fellowship, has won several awards for his work including the Wole Soyinka Prize for Investigative Journalism, two-time finalist, FAIR( Forum for African Investigative Reporters) Award, and Chevening Scholarship. Twitter: @nicholasibekwe 

More News

Naira notes used to illustrate market trading

Naira gains at parallel market

April 22, 2021
Vice President Yemi Osinbajo

NEC backs finance minister, says no money printed

April 22, 2021
Minister of Communication, Dr Isa Ali Pantami [PHOTO CREDIT: @FMoCDENigeria]

Presidency speaks on Pantami’s controversial past

April 22, 2021
Nigerian stock exchange

Nigerian stocks rise as bull run continues

April 22, 2021
President Buhari meets with Northern governors

Buhari meets northern governors, pledges to end insecurity in the region

April 22, 2021
Minister of Communication, Dr Isa Ali Pantami [PHOTO CREDIT: @FMoCDENigeria]

It’s Fake: CAN, NSCIA say of document linking Pantami to Yakowa assassination plot

April 22, 2021
Next Post
Late Abba Kyari

Intellectually, Abba Kyari stood above all Buhari's ministers, special advisers - Mamman Daura

United State President Donald Trump addresses a coronavirus update briefing on April 22, 2020, in the James S. Brady Press Briefing Room of the White House.

Coronavirus: Experts caution against injecting disinfectant after Trump statement

Discussion about this post

Search

#EndSARS: Latest Updates




Polaris Bank


JAIZ Ad


Explore Akwa Ibom Ad


Explore Akwa Ibom Ad


Access Bank Ad


NITDA Ad





Glo Ad

Subscribe to News via Email

Enter your email address and receive notifications of news by email.

Join 1,656,257 other subscribers.

Advertisement






netherland biz school Advert



Zenith Advert

ADVERTISEMENT

Our Digital Network

  • PT Hausa
  • Election Centre
  • Human Trafficking Investigation
  • Centre for Investigative Journalism
  • National Conference
  • Press Attack Tracker
  • PT Academy
  • Dubawa
  • LeaksNG
  • Campus Reporter

Resources

  • Oil & Gas Facts
  • List of Universities in Nigeria
  • LIST: Federal Unity Colleges in Nigeria
  • NYSC Orientation Camps in Nigeria
  • Nigeria’s Federal/States’ Budgets since 2005
  • Malabu Scandal Thread
  • World Cup 2018
  • Panama Papers Game
  • Our Digital Network
  • About Us
  • Resources
  • Projects
  • Data & Infographics
  • DONATE

All content is Copyrighted © 2020 The Premium Times, Nigeria

No Result
View All Result
  • Home
  • COVID-19
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Features
    • Investigations
    • Interviews
    • Markets
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • Panama Papers
    • Paradise Papers
    • Parliament Watch
    • AGAHRIN
  • Opinion
  • PT Hausa
  • The Membership Club
  • Dubawa
    • Dubawa NG
  • About Us
    • Advert Rates
  • Careers
  • Contact Us
  • Digital Store
  • DONATE

All content is Copyrighted © 2020 The Premium Times, Nigeria

Our website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.