Arik Air grounded indefinitely over $2.5m debt

Nigeria’s Ministry of Aviation has grounded Arik Air’s operations indefinitely due to the airline’s failure to settle a whopping $2.5 million debt.

The debt, owed to Atlas Petroleum International Ltd., has led to the attachment of Arik Air’s aircraft, leaving the airline’s fleet grounded and its operations at a standstill.

According to a statement issued by the Director of Public Affairs and Consumer Protection at the Nigerian Airspace Management Agency (NAMA), Alhaji Abdullahi Musa, the decision to ground Arik Air’s operations was taken in compliance with a Supreme Court ruling.

The statement revealed that NAMA and the Ministry of Aviation and Aerospace Development were informed of the court’s decision, which ordered the attachment of Arik Air’s aircraft due to the outstanding debt.

The debt saga began in 2016 when Arik Air appealed a Lagos State High Court decision to the Court of Appeal.

However, the appeal was dismissed in 2021, and Arik Air’s subsequent attempt to appeal to the Supreme Court was denied in January 2024. Consequently, the judgment from the Lagos State High Court was registered with the FCT High Court, leading to the attachment of Arik Air’s aircraft.

On June 26, 2024, Honorable Justice O. A. Adeniyi ordered the attachment of Arik’s movable properties, including its aircraft, to satisfy the judgment debt. The order and judgment certificate were served on NAMA and the Minister of Aviation and Aerospace Development, Festus Keyamo.

Despite obtaining an ex parte order to halt further execution, Arik Air has not yet been formally served, prompting NAMA to ground the aircraft involved in the dispute. This move is aimed at preventing any tampering or removal of the aircraft from the court’s jurisdiction, as required by the Supreme Court’s ruling.

The Minister of Aviation and Aerospace Development, Festus Keyamo, is fully aware of the Supreme Court’s ruling and has taken a firm stance to enforce it. NAMA has urged all parties to resolve their issues promptly to enable Arik Air’s fleet to resume operations.

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