Aviation Minister Orders Grounding of Arik Air Operations, AMCON Reacts

•NCAA, FAAN put measures in place to assist airline’s passengers

Chinedu Eze in Lagos and Kasim Sumaina in Abuja

The Minister of Aviation and Aerospace Development, Festus Keyamo has ordered the Grounding of Arik Airline’s operations.

In response to the suspension of the airline’s operations, the Nigerian Airspace Management Agency (NAMA) said the grounding of the airline’s service was in response to a court judgement, saying in order not to allow the aircraft to be taken out of the country, the airline had to be grounded, thereby justifying the Ministers directive.

An Abuja court recently ordered the sale of Arik Air’s aircraft to offset debts owed Arthur Eze and others by the airline.

The court had ordered the sale of aircraft, hangar and movable assets belonging to Arik Air Limited.

 The court had specifically ordered the sale of aircraft bearing registration numbers B737-700/5N-MJF; B737-0–/5N-MJQ; Dash 8-Q400 and 5N-BKK.

However, NAMA in statement signed by the Director, Public Affairs and Consumer Protection, Alhaji Abdullahi Musa, explained why the Minister grounded the operations of the airline.

 NAMA explained that on July, 19, 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 Limited by attaching their aircraft.

 Arik was further given a notice of public auction of the planes by the court which was slated to hold on July 26, 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. The records show that on the 8th day of March, 2016, the Judgment Debtor (Arik) appealed the decision of the High Court of Lagos State entering judgment against it to the Court of Appeal and 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,” NAMA explained.

The agency said the judgment creditor registered the judgment of the Lagos State High Court in the High Court of FCT and on the 26th day of June, 2024, Honorable 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 with Registration No: B737-700/ 5N-MJF, B737-800/ 5N-MJQ, DASH8-Q400 and 5N-BKX in satisfaction of the judgment debt.

“We understand too that Arik has obtained an ex parte 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 aircraft, 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 aircraft 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 aircraft (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,” NAMA said.

NAMA further stated that the Minister, being a member of the Inner Bar himself, understands the implication of the Supreme Court order, noting that dismissing the motion for leave to appeal would risk his licence as a legal practitioner or his privilege as a Senior Advocate of Nigeria (NAN) by engaging in acts that will frustrate an order of the Supreme Court of Nigeria.

“The parties to the dispute are encouraged to resolve their issues as quickly as possible so that the Arik aircraft in question can resume flight operations,” NAMA urged.

 Reacting to the order of the Minister, the Asset Management Corporation of Nigeria (AMCON) which is currently managing the airline under receivership, issued a statement signed by the airline’s Chief Executive Officer, Captain Roy Ilegbodu, stating that the management of the airline under receivership was dismayed by the directive to ground its operations.

 “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.

 It also recalled that 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 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.

 “We sincerely regret any inconvenience caused to our esteemed passengers,” the statement also said.

 Meanwhile, the NCAA and the Federal Airport Authority of Nigeria (FAAN), have said they are working to ameliorate the plight of the airline’s passengers.

FAAN said it has instructed all airport managers across the country to assist affected passengers as Arik Airline works out plans to rebook and transfer passengers to other available flights.

A statement signed by Director, Consumer Protection and Public Affairs, NCAA, Michael Achimugu, in Abuja, noted: “Air travelers may also walk into the NCAA Consumer Protection offices, identify and speak with our officers for assistance or send email to cpd@ncaa.gov.ng.”

Also, a statement by the Director, Public Affairs and Consumer Protection, FAAN, Mrs. Obiageli Orah, noted that the Authority has instructed all airport managers across the country to assist affected passengers.