Aero Contractors Reportedly Lay Off 60% Of Its Workforce - The Herald Nigeria

Aero Contractors Reportedly Lay Off 60% Of Its Workforce

A new report has indicated that the management of distressed airline, Aero, may have laid off up to 60 percent of its workforce in a bid to balance its dwindling operations.

Reports show that the airline’s workers which were more than 1,000 got served with letters of redundancy over the week in a bid to reduce cost.

The airline which is one of the oldest in the industry having been established in 1959 and resuming operations in December 21, 2016 after about four months of self-imposed closure in a statement released admitted it was struggling with excessive cost.

The statement issued by the airline noted that the huge unrealistic personnel cost along with its other challenges in terms of operations has been worsened by its lack of aircrafts.

The redundancy letter it said was “a business decision that will ensure Aero’s survival.”

The statement added: “Following the operational challenges of Aero culminating in loss of business opportunities that adversely affected company finances vis-à-vis operations, we are constrained to place you under redundancy pending a possible future review.

“This decision was communicated to the unions where their understanding was solicited in view of prevailing operational difficulties. Whilst Aero appreciates your contribution to the company and continues to regard you as worthy ambassadors, we solicit your understanding as we struggle to stabilize operations and rebuild the company…”

The statement however cleared workers in the Maintenance Repair and Overhaul (MRO) department adding that they will not be affected by the overhaul.

“The current situation where over a thousand people are basically not engaged due to lack of serviceable aircraft is not sustainable for the airline. The huge monthly salary associated with a bloated workforce will eventually kill the airline, which is not the intention of the current government.

“Aero Contractors currently has aircraft-to-employee ratio of 1:500, which analysts believe is perhaps the worse in the history of global airline industry.

“Government’s intervention in Aero was to save it from total collapse therefore, all steps such as this (issuance of redundancy letters) to ensure its survival must be put into consideration to save the airline”.

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Owolabi Oluwasegun

Content creator, aggregator and consultant. Lover of Conspiracy theories, unpopular opinions and defender of the underdogs.

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