Arik Air’s fleet grounded over controversial $2.5m debt

…Company kicks, slams minister

Arik Air’s fleet has been grounded over a controversial $2.5 million debt.

The Nigerian Airspace Management Agency (NAMA) said on Tuesday that the action was informed by an order from the enforcement department of the Federal Capital Territory (FCT) High Court, regarding a debt of $2.5m owed by Arik to Atlas Petroleum International Ltd.

“On the 19th day of July, 2024, the enforcement department of the FCT High Court enforced an Order made by the Court regarding a 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,” NAMA said in a statement.

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It said that records show that on the 8th day of March, 2016, the judgment debtor (ARIK) appealed the decision of the Lagos High Court, entering judgment against it to the Court of Appeal.

“On 30th September, 2021, the appeal was dismissed by the Court of Appeal in a unanimous decision with cost.

“ARIK again appealed to the Supreme Court for leave to appeal the decision of the Court of Appeal, and on the 9th day of January, 2024, the Supreme Court, per Okoro, J.S.C., delivered its Ruling dismissing the Judgment Debtor’s application for leave to appeal.”

The statement said the judgment creditor (Atlas) registered the judgment of the Lagos State High Court at the High Court of FCT and On the 26th day of June, 2024, Justice O. A. Adeniyi, (then sitting in Court 8, Maitama, Abuja), made an order after hearing Motion No: M/9785/2024 filed on behalf of Atlas Petroleum attaching all the moveable properties belonging to the judgment debtor, including the judgment debtor’s aircraft. It noted that copies of the order and certificate of judgment were also served on us and the minister.

“We understand too that Arik has obtained an exparte order stopping FURTHER EXECUTION of the order, though we have not been formally served. In the circumstances, since the first execution took place by attaching the aircrafts, further execution by way of sale can be halted whilst the parties go back to court to resolve the issues. However, in order to preserve the subject matter of the present dispute which are the aircrafts in question (the res), which have already been attached, we have decided to comply with the effect of the Supreme Court order, by grounding the aircrafts (subject of dispute) so that they are not taken out of the jurisdiction of the court or tampered with in a way as to frustrate the courts.”

However, Roy Ilegbodu, CEO of Arik Air (In Receivership), has slammed Festus Keyamo, aviation minister, blaming him for his sudden decision to ground the airline’s fleet, calling it a ‘disastrous’ and ‘unjust’ move that disregards ongoing judicial processes and prioritises 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.

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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He said, “The grounding of our fleet will leave passengers stranded and inflate already high travel costs, hurting everyday Nigerians who rely on our flights for business, family, and essential activities.”

The CEO also expressed outrage over the minister’s disregard for ongoing judicial processes.

“We are perplexed as to why the grounding of our fleet was ordered, despite clear court directives to maintain status quo. This is an overreach of the ongoing judicial processes and directives of court, and it undermines the rule of law.”

Ilegbodu urged the authorities to reconsider the decision and lift the grounding order, allowing Arik Air to continue serving the public and supporting the economy.

“We are committed to following the legal process and have full faith in the judiciary to resolve these matters fairly,” he said.

The CEO expressed gratitude to passengers and employees for their support and understanding during this challenging time.