The Minister of Aviation and Aerospace Development, Festus Keyamo, has ordered that the operations of Arik Air should be grounded.
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 aircraft.
The Court issued a significant judgment ordering the sale of aircraft, hangar and movable assets belonging to Arik Air Limited.
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A statement by the Nigerian Airspace Management Agency, NAMA, reveals that the court also issued a notice of public auction, which was set to take place on July 26, 2024, if the debt was not paid.
NAMA says, Arik was served with the court order and notified the Supervising Minister, the Minister of Aviation.
According to the statement, the ministry decided to ground the aircraft in question to prevent them from being taken out of the jurisdiction or tampered with, which could frustrate the court’s proceedings.
Reacting to the order of the Minister, Asset Management Corporation of Nigeria (AMCON) which is currently managing the airline under receivership, issued a statement signed by Chief Executive Officer, Captain Roy Ilegbodu, stating that the management of the airline under receivership was dismayed by the directive to ground its operations by the Minister.
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“The management of Arik Air (In Receivership) is dismayed by the sudden order issued by the Honourable Minister of Aviation to ground our Aircraft. 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,” the airline said.
Roy Ilegbodu, CEO of Arik Air (In Receivership), slammed the Minister for his sudden decision to ground the airline’s fleet, calling it a ‘disastrous’ and ‘unjust’ move that disregards ongoing judicial processes and prioritizes private interests over the public good.
In a statement, Ilegbodu expressed his deep disappointment and frustration over the minister’s decision, which he said was made without warning or consultation.
“This is a devastating blow to our passengers, employees, and the Nigerian economy,” he said.
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Ilegbodu accused the minister of ignoring the airline’s commitment to connecting people and facilitating commerce, particularly on critical domestic routes.
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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.
“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,” FAAN stated in a statement by its spokesperson, Mrs. Obiageli Orah.
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