FG grounds Arik Air over $2.5m debt

Mnister of Aviation and Aerospace Development, Mr. Festus Keyamo, has ordered the grounding of Arik Air. The development has put many passengers of the airline in disarray. Our correspondent gathered that the grounding of the airline which is currently in receivership followed litigation issues with its creditors. The order by the Minister followed a court […]

Mnister of Aviation and Aerospace Development, Mr. Festus Keyamo, has ordered the grounding of Arik Air.

The development has put many passengers of the airline in disarray.

Our correspondent gathered that the grounding of the airline which is currently in receivership followed litigation issues with its creditors.

The order by the Minister followed a court verdict on the debt of $2.5 million owed by Arik Airline to one Atlas Petroleum International Ltd. by attaching their aircrafts.

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Arik was further given a notice of Public Auction of the planes by the Court which was slated to hold on the 26th day of July 2024 if they fail to pay the Judgment debt.

“All these were served on our agency and also on our Supervising Minister, the Minister of Aviation,” a statement by the Nigeria Airspace Management Agency (NAMA) said.

The management of the airline however expressed dismay by what it called the “sudden order” issued by the Minister.

Captain Roy Ilegbodu, Chief Executive Officer of the airline, said, “This decision, made without warning or consultation, has serious repercussions for our valued passengers, dedicated employees, and the broader Nigerian economy.

“Our priority has always been to connect people and facilitate commerce, especially on critical domestic routes. The grounding of our fleet disrupts these vital services, leaving passengers stranded and inflating already high travel costs. This decision hurts everyday Nigerians who rely on our flights for business, family, and essential activities.

“The decision also disregards ongoing judicial processes. On February 26, 2016, a judgment was made in favor of Atlas Petroleum International Limited and Engineer Arthur Eze.

“However, there is an ongoing case in the Federal High Court, where Asset Management Corporation of Nigeria (AMCON) is asserting its secured interest in Arik’s assets. Despite this, a writ of attachment was issued on July 18, 2024, targeting our Aircraft, subsequent to which, further to an originating motion filed by AMCON, the High Court of the FCT on July 25, 2024 clearly instructed all parties to maintain status quo. We therefore are perplexed as to the grounding of our fleet, which is an overreach of the ongoing judicial processes and directives of court.

“We believe this action undermines the rule of law and sets a dangerous precedent, prioritizing unsecured private interests over the public good and the rights of secured creditors. We are committed to following the legal process and have full faith in the judiciary to resolve these matters fairly.

“Arik has always been a proud partner in Nigeria’s growth, providing reliable and safe air travel. We urge the authorities to reconsider this decision, lift the grounding order, and allow us to continue serving the public and supporting the economy.

“We stand with our passengers and employees during this challenging time and are working tirelessly to resolve this situation. Your support and understanding are greatly appreciated.

“We sincerely regret any inconvenience caused to our esteemed passengers.”

Meanwhile the Federal Airports Authority of Nigeria (FAAN) said it has put in place measures to assist the stranded Arik Air passengers.

FAAN stated that it is aware that Arik Airline has been grounded due to litigation issues between the airline and their creditors.

“The Authority has instructed all airport managers across the country to assist the affected passengers as Arik Airline works out plans to rebook and transfer passengers to other available flights,” FAAN stated in a statement by its spokesperson, Mrs. Obiageli Orah.