Cally Air
AviationBreakingBusinessTrending Story

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

1.4k
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  Clarify How Governorship/State Assembly Polls Results Will Be Transmitted, WHISTLER Tells INEC

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

Author

Leave a comment

Related Articles

How Elumelu Taking Seplat’s Chairmanship in 2027 Will Drive Market and Political Power

By Samuel Akpan In January 2027, Tony Elumelu will take over as...

Breaking: Heirs Energies Adds $70m Seplat Slice as Elumelu Prepares to Chair

By Samuel Akpan Tony Elumelu’s Heirs Energies has paid about $70 million...

Dangote Presses On With $16bIn Kenya Refinery After Court Order

By Samuel Akpan Dangote Group has declared that a Kenyan court directive...

Breaking: CBN Slashes Interest Rate to 23% as Inflation Edges Lower

By Samuel Akpan Nigeria’s apex bank stunned markets Tuesday by slashing its...