FG grounds Arik Air over $2.5m debt

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

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.

The Director, Public Affairs and Consumer Protection, Nigeria Airspace Management Agency (NAMA) Alhaji Abdullahi Musa in a press statement explained that 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 have however, expressed dismay by what it called the “sudden order” issued by the Minister.

The Chief Executive Officer of the airline, Captain Roy Ilegbodu, said 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.

“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.”

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

The spokesperson of FAAN, Mrs. Obiageli Orah in a press statement stated that it is aware that Arik Airline has been grounded due to litigation issues between the airline and their creditors.

She said 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.