The Federal Government (FG) has announced the lifting of the suspension on Arik Air’s flight operations. This decision comes after a recent legal dispute led to the grounding of the airline’s planes.
On July 30, 2024, Arik Air’s operations were halted due to a court order related to a financial disagreement with Atlas Petroleum International Ltd. The dispute revolved around a $2.5 million debt owed by Arik Air, which led to the enforcement of a court order that saw the airline’s aircraft grounded.
The Nigerian Civil Aviation Authority (NCAA) has confirmed that the conflict has been resolved. Michael Achimugu, the Director of Public Affairs and Consumer Protection at NCAA, shared the news on X on August 8, 2024.
He stated, “The Honourable Minister of Aviation and Aerospace Development, Festus Keyamo SAN, and the DG of NCAA, Capt. Chris Najomo have successfully resolved the impasse between Arik Air and Atlas Petroleum.”
Achimugu further added, “By this resolution, Arik Air will begin operations today. The priority of the Minister and the NCAA remains to ensure safe and secure air travel for all passengers. Arik Air passengers are currently checking in for scheduled flights.”
The grounding of Arik Air was initially ordered by the Nigerian Airspace Management Agency (NAMA) following a directive from the FCT High Court.
The enforcement involved attaching the airline’s aircraft to settle the debt, and subsequent court actions included notices for public auction of the planes if the debt was not settled.
It said, “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.
“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.
“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. 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.
“Furthermore, the Minister, being a member of the Inner Bar himself understands the implication of the Supreme Court Order dismissing the motion for leave to appeal and will not risk his license as a legal practitioner or his privilege as a Senior Advocate of Nigeria 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 aircrafts in question can resume flight operations.”
