Cally Air
AviationBreakingBusinessTrending Story

Cross River’s Cally Air face major cash and operational issues- at risk of grounding

1.3k
Advertisement




 

Cross River state Cally Air is at risk of being grounded barely a month after it started operating with its shareholder, an official of the Cross River State government said.

The official disclosed that the state has been unable to withdraw the cash needed to pay for the insurance and maintenance of its aircraft.

State Commissioner for Aviation Jake Otu-Enyia also revealed that the state has been unable to draw funds deposited in an unnamed commercial bank in order to pay for the insurance and maintenance of the aircraft. “Cally Air is at the risk of being shut down because we are unable to get money from the bank to renew our insurance and do maintenance of our aircraft as its standard practice and instructions from the NCAA (Nigerian Civil Aviation Authority),” he said.

 

Cally Air

He claimed the bank was deliberately frustrating the state’s efforts to withdraw its funds. “We have been here since last week trying to withdraw our money from this bank. They keep telling us ‘come tomorrow’ and all that. We took this action because we need the money for the servicing of our aircraft and to complete the renewal of our insurance, otherwise, our aircraft will be grounded. The ministry is not asking for a loan; we came to withdraw our money and nobody is telling us why we cannot withdraw our money,” Otu-Enyia said.

The airline, operated by Aero Contractor on behalf of the Cross River state,nly began operations on July 15 on routes between Lagos, Kano and Abuja with two B737-300s.

See also  APC National Chairman, Oshiomhole, suspended

The state and airline staged a protest at the entrance to the bank in Calabar recently.

Author

Leave a comment

Related Articles

30 Days After, NSIB Reveals Why Jet Landed on Asaba Highway Under Construction

A preliminary report by the Nigerian Safety Investigation Bureau (NSIB) indicates that...

CBN Warns Against Rejecting Standard N100 Banknote

By Samuel Akpan The Central Bank of Nigeria (CBN) has cautioned Nigerians...

After impactful 12-year tenure, Tony Elumelu Steps Down as UBA Chairman, Nnorom Steps In

Tony O. Elumelu, United Bank for Africa (UBA) Plc Group Chairman, will...

Capital market key to translating economic reforms into household prosperity – CMAN

By Maryanne Awuya The Capital Market Academics of Nigeria (CMAN) has said...