Aviation: Arik Air operations grounded over litigation, credit issues
The Federal Airports Authority of Nigeria (FAAN) is aware that Arik Airline has been grounded due to litigation issues between the airline and their creditors
The federal government on Tuesday, July 30, grounded the fleet of Arik Air aircraft due to what industry sources described as litigation issues between the carrier and its creditors.
To starve off possible consequences of the action, the Federal Airports Authority of Nigeria (FAAN), announced on Tuesday that it is making efforts with other authorities to work out plans to rebook and transfer passengers billed to travel on Arik Air to other airlines.
According to a statement by FAAN’s Director of Public Affairs and Consumer Protection, Mrs Obiagelo Orah, the authority said: “This is to inform the public that the Federal Airports Authority of Nigeria (FAAN) 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.”
But, the Receiver Management of Arik Air, led by Captain Roy Ilegbodu, who is also the Chief Executive Officer expressed dismay with the Minister’s order grounding its fleet.
Captain Ilegbodu, said the Ministry of Aviation took the decision to ground Arik Air’s fleet without warning or consultation, a development he said has serious repercussions for its valued passengers, dedicated employees, and the broader Nigerian economy.
In a statement, Arik Air said the grounding of its fleet has left many passengers stranded, thereby inflating the already high cost of travel.
The statement reads: “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 favour 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.”
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