Business
A’Ibom Packages Air Services With Arik
In abid to ensure full utilization of facilities at the Ibom international airport, the state government has announced plans to sign a N500 million aviation services deal with Arik Air.
The airport which has since commenced day time scheduled flights beginning November has recorded more than 3,000 in flight passengers.
In a letter to the State House of Assembly, Governor Godswill Akpabio said the air travel agreement would cover the development of the new route between the state government and the airline.
The governor, who urged the lawmakers to endorse the agreement, said N500 million has been set aside to guarantee fifty per cent seat capacity as well as additional N50 million for preparation and route development services which he said, had been kept in an escrow account with Spring Bank.
The governor’s letter was read by the clerk of the Assembly on the floor of the House before the presentation of the 2010 budget proposal by the governor.
Arik Air was the first airtime operator to land at the Akwa-Ibom international Airport during the inaugural flight which took place on September 23.
Last month, the state government gave reasons why it has entered into an agreement with the airline, saying it was meant to overcome the challenge of competition from other nearby airports and ensure full utilization of the airport.
According to the deputy governor, Patrick Ekpotu, soon after the airport was completed, the management of the airline which had long been in partnership with the state government for the development of the airport began to sing a different tune.
Ekpotu said it was then that the state government decided to subsidize all flights operated by the airline to the airport.
This according to him means that the state government will pay for vacant seats on every flight undertaken by the airline.
The governor’s letter did not say how long the aviation services would cover and whether such agreement would be extended to other airline operator wishing to fly the Uyo-Abuja or Lagos Uyo routes.