BY OLAPEJU OLUBI
In a decisive move, the Minister of Aviation and Aerospace Development, Festus Keyamo, has grounded the operations of Arik Air.
This action follows a Federal High Court ruling in Abuja, which ordered the sale of the airline’s aircraft to settle a $2.5 million debt owed a businessman, Arthur Eze.
While the minister has yet to issue an official statement regarding his directive, Arik Air’s management, currently under receivership, has voiced its objections.
In a statement signed by Chief Executive Officer Captain Roy Ilegbodu, the airline criticized the grounding order as being in defiance of a standing court directive.
Ilegbodu argued that the grounding of Arik Air’s fleet disregards the ongoing legal processes.
He emphasized that the Federal High Court is actively considering a case where the Asset Management Corporation of Nigeria (AMCON) asserts its secured interest in the airline’s assets.
Despite this, a writ of attachment was issued on July 18, 2024, which targeted Arik’s aircraft. This was followed by a High Court of the Federal Capital Territory (FCT) order on July 25, 2024, instructing all parties to maintain the status quo.
The airline expressed deep concern over the grounding of its operations, describing the move as an overreach of judicial processes and a contravention of court directives.
Arik Air lamented that the action undermines the rule of law, setting a dangerous precedent by prioritizing unsecured private interests over the rights of secured creditors and the public good.
“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.” the statement read.
Arik Air emphasized its role as a significant contributor to Nigeria’s aviation sector, providing reliable and safe air travel.
The airline urged authorities to reconsider the grounding order, arguing that it hampers its ability to serve the public and support 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,” the statement continued.
The airline further criticized the decision as being abrupt and unconsulted, highlighting its potential repercussions.
It noted that the grounding would adversely affect passengers, the airline’s dedicated workforce, and the broader Nigerian economy.
Arik Air stressed its commitment to connecting people and facilitating commerce, especially on critical domestic routes.
The grounding, it warned, disrupts vital services, leaving passengers stranded and exacerbating the already high cost of travel.
“This decision hurts everyday Nigerians who rely on our flights for business, family, and essential activities,” the statement concluded.
AMCON has also expressed its dissatisfaction with the situation, emphasizing its secured interest in Arik’s assets.
The corporation highlighted the importance of adhering to legal protocols and expressed concern over the potential implications of the grounding on its investment and the wider financial stability of the sector.
As the legal battle continues, all eyes are on the judicial system to determine the next steps in this complex and high-stakes situation.
The resolution of this case will not only impact Arik Air and its stakeholders but also set a precedent for the treatment of secured creditors versus unsecured private claims in Nigeria’s aviation industry.
