Arik Air cries foul over Minister Keyamo’s airline fleet grounding order

• Insists decision hurts Nigerian passengers, economy

Business a.m.

The management of Arik Air (In Receivership) have expressed their dismay over the abrupt grounding order of its aircraft fleet issued by Festus Keyamo, the minister of aviation, stating that such a drastic measure was taken without prior notice or consultation..

A statement issued and signed by  Roy Ilegbodu, the chief executive officer, Arik Air (In Receivership), claimed that the unexpected development will have serious negative consequences for its valued passengers, hardworking employees, and the Nigerian economy as a whole.

The federal government, had on Tuesday, July 30, issued a grounding order on the fleet of Arik Air aircraft, citing ongoing litigation issues between the airline and its creditors as the cause. 

Furthermore, the Federal Airports Authority of Nigeria (FAAN) announced plans to work with relevant authorities to rebook and transfer affected Arik Air passengers to other airlines, in order to minimise the impact of the grounding order on air travel.

FAAN, in a statement signed by Obiagelo Orah, director of public affairs and consumer protection, stated: “This is to inform the public that the Federal Airports Authority of Nigeria (FAAN) 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.”

However, Arik Air, in its defence stated that its priority has always been to connect people and facilitate commerce, especially on critical domestic routes. It noted that the grounding of its fleet disrupts these vital services, leaving passengers stranded and inflating already high travel costs. This decision, it added, hurts everyday Nigerians who rely on its flights for business, family, and essential activities.

The airline stated further: “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. 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.

We stand with our passengers and employees during this challenging time and are working tirelessly to resolve this situation. Your support and understanding are greatly appreciated.”

In conclusion, Arik Air conveyed its deep regret for any difficulties or inconveniences experienced by its valued passengers as a result of the grounding order.