A Nigerian government agency on Thursday said it had taken over the country's main private airline Arik Air to prevent it from going bust. Jude Nwauzor, a spokesman for the Asset Management Corporation of Nigeria (AMCON), told AFP: "AMCON has taken over the management of Arik because the whole place is in a mess. "We have appointed a new management to stabilise the airline and prevent it from going down like other airlines in Nigeria."
Arik, which was set up in 2006, has a 60 percent share of domestic flights in Nigeria. It also serves destinations across West Africa and flies to London, Johannesburg and New York.
Company spokesman Ola Adebanji confirmed the move but declined to elaborate.
AMCON said Arik had failed to repay loans totalling 135 billion naira ($429 million, 402 million euros) by the end of December and also had debts to "a lot of foreign creditors".
Staff salaries have not been paid for up to eight months and it had defaulted on payments for insurance, repairs and servicing of its planes, it added.
"International creditors have seized some of its planes because of mounting debts," said Nwauzor.
Passengers have borne the brunt of the increasing management and financial problems at Arik, with frequent cancellations and delays to services.
Last month, irate passengers beat up one of Arik's officials at Lagos international airport following the third consecutive cancellation of their flight to South Africa.
In December, services were grounded by a 24-hour strike over unpaid wages.
"The government felt all this nonsense should stop," said Nwauzor.