Air Peace, Arik Air Deny Being Blacklisted by Lessors
*We have never engaged in aircraft dry leasing – Air Peace
Chinedu Eze
The management of Air Peace has reacted to reports indicating that it was blacklisted by lessors on dry lease (long term leasing) along with other airlines, saying that it had never engaged in dry lease and it had never been blacklisted.
In another related development, the shareholders of Arik Air also denied that the airline was blacklisted by lessors during the period under the management of the founder.
Air Peace in the statement signed by its management stated: “Our attention has been drawn to erroneous claims by a newspaper outlet (not THISDAY), and a host of other media outfits who on the 17 July, 2024, published an article titled “13 Nigerian Airlines Blacklisted for Contract Breaches,” which incorrectly included our airline.
“Air Peace has consistently operated with the highest standards of ethics and professionalism since our inception in 2014. Contrary to the misleading information presented in the article, Air Peace has never dry-leased any aircraft since the inception of the airline and, as such, couldn’t have breached a non-existent contract and has never been blacklisted by any lessor.
“We have never breached any contractual obligations. Our financial dealings have always been conducted with utmost integrity and transparency, with no breaches of payment terms.”
Likewise, in a statement signed on behalf of Arik Air shareholders by Aideloje Godwin, they reacted to reports indicating that Nigerian airlines were blacklisted by lessors for reneging on leasing agreements.
According to the shareholders of Arik Air, “We wish to clarify that Arik Air Limited founded in 2006 has a verifiable good record of transactions of acquisition of aircraft with no-default in repayments to the international credit agencies that financed acquisition of her aircraft up until 9 February 2017 when it was forcefully taken over by AMCON through an exparte order of the Federal High Court.
On its part, the Air Peace management also said that its operations remain robust and compliant with all relevant regulatory and industry standards, adding that Air Peace is committed to maintaining excellent service and operational efficiency, setting a benchmark in the West African aviation sector.
It also noted that the inclusion of Air Peace in the said publication is both misleading and damaging to its reputation, adding that the allegations were completely unfounded and have no basis in reality.
The airline said: “Air Peace, by virtue of its vantage position and rising profile, has been subjected to several smear campaigns aimed at distracting it from its ultimate goal of connecting cities and generally improving aviation travel within Nigeria, Africa and the world at large.
“Air Peace is, however, open to constructive criticism but frowns at attempts to bring it down by misinforming the world about its operations.”
Air Peace further stated that it connects people to most of the cities in Nigeria and has extended its operations to many destinations in West Africa and beyond.
It further elaborated: “Air Peace has placed Nigeria’s aviation industry firmly on the global map, showcasing the capabilities of a Nigerian airline across various fronts, notably excelling in maintaining an unparalleled safety culture.
“The airline’s visionary goal is to be ever dependable through the creation of seamless connections and network options for its extensive domestic, regional, and international markets. The heartbeat of Air Peace’s success lies in its strategic approach to fleet modernization and route expansion.
“In 2021, the airline achieved a milestone by becoming the launch customer for the groundbreaking 124-seater Embraer 195-E2 aircraft in Africa. This marked the delivery of the first five units as part of a 2018 firm order for 13 E195s, with additional orders for Boeing 737 MAX 8 and 737 MAX 10 aircraft, signalling a phased transition from the existing Boeing 737 fleet.
“Elevating its fleet modernization, Air Peace recently inked a significant deal-a firm order for five Embraer 175 aircraft, accompanied by plans for a local maintenance facility supported by Embraer.”
The airline added that it has consistently maintained a clean safety record in all its operations.
Meanwhile, in further clarification, Arik Air stated: “Arik Air financial model is such that all sales collections are by Nigerian banks. By this collection arrangement, Arik Air authorised the local collection banks that the repayments for the aircraft shall be first charged on the sales collections’ accounts.
“Furthermore, the banks were authorised to bid for forex from the Central Bank of Nigeria (CBN) to pay for the aircraft acquisition. Where the local banks could not source forex from the CBN, Arik Air authorised the banks to purchase forex from other sources/channels to meet these obligations.
“By this arrangement, Arik Air Limited has fully paid-up over 80 per cent of its aircraft fleet to the aircraft financiers. Hence, up to 9 February 2017 when AMCON forcefully took over Arik Air, there could not have arisen any cases of default in meeting the airline’s obligations.”
They recalled that Arik Air commenced domestic flights operations in Nigeria in 2006 and further extended into West, Central Africa and South Africa. The network grew over the years to London Heathrow (which it operated from Lagos for about 9 years), New York (which it operated from Lagos for about 8 years), and Dubai (which it operated from Lagos for about 4 years).
During this period (30 October 2006 to 9 February 2017), no Arik aircraft or engines were seized, detained or commandeered for any default, they further clarified.
The shareholders also said that rather than seizures, based upon Arik satisfactory repayments performance, the international financiers offered about $500m to Arik to purchase additional newly manufactured aircraft to further expand the airline operational capacity and route network before AMCON’s forceful takeover on 9 February 2017.
They added: “Thus, it is an incontrovertible fact that the legacy Arik Air management did not default in any of its aircraft purchase repayments and was not blacklisted by any lessor or aircraft financing partners. Any such reports of default before 9 February 2017 are false, unfounded and grossly misleading.
“Suffice it to state that Arik Air was placed into receivership on 8 February 2017 vide an exparte order of the Federal High Court and was forcefully taken over on the 9 February 2017 by AMCON’s receiver manager, Mr. Oluseye Opasanya, SAN, with a large detachment of mobile policemen. The take-over was effected without any form inventory of assets and liability as required by law.
“It is interesting to note that AMCON and its Receiver Manager took over Arik Air Limited vide an exparte order of the Federal High Court Lagos, yet it refused to obey a judgement of the Federal High Court Lagos that granted an unfettered access to the shareholders/directors of Arik Air to their offices in March 2023.
“We note with dismay that AMCON took over 19 serviceable aircraft that operated average of 120 daily flights with spare parts inventory valued at about $150M. Arik Air Limited valued at the sum of $3.7b by Delloite of London has been recklessly mismanaged by AMCON’s receiver managers resulting in only 2 serviceable aircraft as of date.
“The rest have been cannibalised/grounded, engines abandoned in maintenance shops worldwide, multimillion dollars London Heathrow and New York JFK landing slots lost while some aircraft cannot be accounted for due to AMCON’s receiver manager discontinuation of servicing contracted financial obligations of legacy Arik Air Limited.
“Today, Arik in Receivership has only two operational aircraft and its route network is embarrassingly reduced to Lagos-Abuja-Lagos flights.
“In terms of receivership, the Arik Air Shareholders said AMCON Receiver Managers are obligated to service all contracted obligations, duly maintain the aircraft and manage efficiently the network and value of the airline.
“In this regard, therefore, if there is any blacklisting of airline, it is the Arik (in Receivership) by AMCON that is blacklisted and not the legacy Arik Air Limited.
“It should be noted that all reported defaults of the airline occurred sometime in 2019, 2 years into AMCON receivership under the watch of Mr. Oluseye Opasanya, SAN, through to the tenure of Mr. Kamilu Alaba Omokide FCA (both AMCON receiver managers),
“In conclusion. It is important that Nigeria and the international community are informed of the true facts of who and what is working against Nigeria in the international business community. Hence any such bad reputation associated with Nigeria resulting from negative media in aviation associated with Arik Air (in receivership) is only as a result of mismanagement of Arik Air by AMCON receivership managers.”
