The Federal Government, through the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, has ordered the immediate grounding of Arik Air, causing widespread confusion among passengers.
This decision stems from a $2.5 million debt owed by Arik Air to Atlas Petroleum International Ltd., leading to a court verdict and subsequent litigation issues.
Arik Air, currently in receivership, was warned that their aircraft would be auctioned publicly on July 26, 2024, if the judgment debt remained unpaid.
The Nigeria Airspace Management Agency (NAMA) confirmed receiving the court’s directives and the minister’s order.
“All these were served on our agency and also on our Supervising Minister, the Minister of Aviation,” a statement by NAMA read.
The airline’s management expressed shock at the “sudden order” from the minister. Captain Roy Ilegbodu, CEO of Arik Air, lamented the lack of warning or consultation.
“This decision, made without warning or consultation, has serious repercussions for our valued passengers, dedicated employees, and the broader Nigerian economy,” said Captain Ilegbodu. “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.”
Ilegbodu also highlighted ongoing legal battles, noting that a judgment favoring Atlas Petroleum International Limited and Engineer Arthur Eze was made on February 26, 2016.
However, AMCON’s claim over Arik’s assets is still under review in the Federal High Court.
“Despite this, a writ of attachment was issued on July 18, 2024, targeting our aircraft. Subsequently, further to an originating motion filed by AMCON, the High Court of the FCT on July 25, 2024, clearly instructed all parties to maintain the 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 the court,” he added.
Arik Air urged the authorities to reconsider the decision, emphasizing their commitment to legal processes and faith in the judiciary.
“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. 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,” Ilegbodu said.
Meanwhile, the Federal Airports Authority of Nigeria (FAAN) announced measures to assist stranded passengers.
FAAN spokesperson Mrs. Obiageli Orah stated, “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.”
The grounding of Arik Air has left passengers in a lurch, but efforts are underway to mitigate the impact as the airline navigates through its legal and financial troubles.
