Abuja, July 30, 2024 – The Federal Airports Authority of Nigeria (FAAN) has grounded Arik Air aircraft due to debt issues between the airline and its creditors.
It announced this on Tuesday, stressing that it was making efforts to work out plans to rebook and transfer passengers billed to travel on Arik Air to other airlines.
Mrs Obiagelo Orah, the Director of Public Affairs and Consumer Protection in FAAN, issued a terse statement to inform the public that Arik Airline had 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,” it said.
Captain Roy Ilegbodu, the Receiver Manager in Arik Air, who is also the Chief Executive Officer, expressed dismay with the minister’s order grounding his fleet.
In a statement, Arik Air said by grounding its fleet, many of its passengers had been left stranded.
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.” (GBN)
