Arik Airline’s operations were halted by the Nigerian Airspace Management Agency (NAMA) due to a $2.5 million debt owed to Atlas Petroleum International Ltd.
The grounding was confirmed by Abdullahi Musa, NAMA’s Director of Public Affairs and Consumer Protection, in a statement on Tuesday. According to Musa, the Federal Capital Territory (FCT) High Court enforced the grounding order on July 19, 2024, by attaching Arik’s planes to ensure the debt is secured.
Musa elaborated, “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 Atlas Petroleum International Ltd. by attaching their aircraft.”
The court further issued a notice for a public auction of Arik’s planes, scheduled for July 26, 2024, if the airline failed to settle the debt. The legal conflict began on March 8, 2016, when the Lagos State High Court ruled against Arik Airline. Despite appealing, the decision was upheld by the Court of Appeal on September 30, 2021, and the Supreme Court dismissed further appeals on January 9, 2024.
The statement added, “The Supreme Court, per Okoro, J.S.C., delivered its Ruling dismissing the Judgment Debtor’s application for leave to appeal.”
Following these rulings, the judgment was registered in the FCT High Court. On June 26, 2024, Justice O. A. Adeniyi ordered the attachment of Arik’s movable properties, including several aircraft. NAMA noted that copies of the order and the Certificate of Judgment were also served to them and the Minister.
While Arik Airline obtained an ex-parte order to stop further execution, NAMA has not been formally served. Consequently, NAMA decided to ground the aircraft to preserve the subject matter of the dispute.
“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,” the statement said.
NAMA emphasized the Minister’s commitment to upholding the Supreme Court’s order and avoiding any actions that might undermine it. “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 statement affirmed.
NAMA urged the involved parties to resolve their disputes swiftly so that Arik’s grounded aircraft can return to service.
“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.”
Following NAMA’s announcement, the Federal Airports Authority of Nigeria (FAAN) stated measures to support passengers affected by the grounding of Arik Airline. In a statement posted on the agency’s X account, FAAN acknowledged the situation and assured passengers of assistance.
“The Federal Airports Authority of Nigeria is aware that Arik Airline has been grounded due to litigation issues between the airline and their creditors,” the statement read. “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.”
