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Ministry Of Aviation Grounds Arik Air’s Operations Indefinitely over $2.5million Debt

The court had scheduled a public auction of the aircraft for July 26, 2024, should Arik Air fail to settle the judgment debt.

The Nigerian Airspace Management Agency (NAMA) has confirmed that Arik Air’s fleet was grounded due to the airline’s $2.5 million debt and in compliance with a Supreme Court ruling.

A statement issued by the Director of Public Affairs and Consumer Protection at NAMA, Alhaji Abdullahi Musa, said that NAMA and the Ministry of Aviation and Aerospace Development were informed of the court’s decision.

The statement revealed that Arik Air owed Atlas Petroleum International Ltd., leading to the attachment of its aircraft. On July 19, 2024, the enforcement department of the Federal Capital Territory (FCT) High Court acted on the court’s order concerning the $2.5 million debt.

The court had scheduled a public auction of the aircraft for July 26, 2024, should Arik Air fail to settle the judgment debt.

Records show that on March 8, 2016, Arik Air appealed a Lagos State High Court decision to the Court of Appeal.

The statement noted that the appeal was dismissed on September 30, 2021. Arik Air then sought leave to appeal this decision to the Supreme Court, which was denied on January 9, 2024.

Consequently, the judgment from the Lagos State High Court was registered with the FCT High Court.

On June 26, 2024, Honorable Justice O. A. Adeniyi ordered the attachment of Arik’s movable properties, including its aircraft, to satisfy the judgment debt.

The order and judgment certificate were also served on NAMA and the Minister of Aviation and Aerospace Development.

NAMA noted that while Arik Air had obtained an ex parte order to halt further execution, it had not yet been formally served.

To preserve the aircraft involved in the dispute, NAMA has grounded them to prevent any tampering or removal from the court’s jurisdiction, as required by the Supreme Court’s ruling.

The Minister of Aviation and Aerospace Development, Festus Keyamo, is fully aware of the Supreme Court’s ruling and would not risk his professional standing by undermining it.

NAMA urges all parties to resolve their issues promptly so that Arik Air’s fleet can resume operations.

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