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Home Featured

Passengers In Disarray As FG Grounds Arik Air Over $2.5m Debt

by ReportersAtLarge
July 30, 2024
in Featured
Reading Time: 2 mins read
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Arik Airline
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Many passengers of Arik Air are in disarray as Mnister of Aviation and Aerospace Development, Mr. Festus Keyamo, has ordered the grounding of the airline.

Daily Trust reports that the grounding of the airline which is currently in receivership followed litigation issues with its creditors.

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.

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.

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The management of the airline however expressed dismay by what it called the “sudden order” issued by the Minister.

Captain Roy Ilegbodu, Chief Executive Officer of the airline, said, “This decision, made without warning or consultation, has serious repercussions for our valued passengers, dedicated employees, and the broader Nigerian economy.

“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 favor of Atlas Petroleum International Limited and Engineer Arthur Eze.”

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

FAAN stated that it is aware that Arik Airline has been grounded due to litigation issues between the airline and their creditors.

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