The Senate Comgmittee on Banking and Financial Institutions has endorsed the takeover of Arik Airline, by the Asset Management Corporation of Nigeria (AMCON).
The Managing Director of AMCON, Mr Ahmed Kuru has said that Arik is indebted to AMCON to the tune of 146 billion Naira which excludes its (Arik) indebtedness to other banks and aviation authorities.
He says the airline has consistently defaulted in paying off its loans and has a problem of accountability.
The AMCON boss further noted that the government has no plan to rationalise workers of the airline.
In a similar meeting with members of the House of Representatives, Mr Kuru told committee members that the solution to the problems in the aviation sector, is for government to reform the sector for effective management.
He however refuted reports that the Federal Government took over Arik airlines with the intention of making it a National Carrier, describing it as untrue.