FG suspends Arik Air operations, airline mgt kicks

FG suspends Arik Air operations, airline mgt kicks

The federal government has issued an immediate directive to suspend all Arik Air aircraft operations, as announced by Festus Keyamo, the Minister of Aviation and Aerospace Development, on Tuesday.

The minister did not specify the reasons behind this decision.

Roy Ilegbodu, CEO of Arik Air (in receivership), expressed his dismay over the sudden order, highlighting that it was made without any prior warning or consultation. He emphasized that this directive would have significant repercussions on the airline, its passengers, employees, and the broader Nigerian economy.

“The management of Arik Air (In Receivership) is dismayed by the sudden order issued by the honourable minister of aviation to ground our aircraft,” Ilegbodu stated. “This decision, made without warning or consultation, has serious repercussions for our valued passengers, dedicated employees, and the broader Nigerian economy.”

He pointed out that the grounding of Arik’s fleet would disrupt critical domestic routes, leaving passengers stranded and increasing travel costs. Ilegbodu stressed that Arik Air has always prioritized connecting people and facilitating commerce.

In February 2017, the federal government took over Arik Air via the Asset Management Corporation of Nigeria (AMCON) due to the airline’s substantial debt, estimated at over N300 billion. Following the takeover, the government dissolved Arik’s management team and appointed a receiver manager.

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Ilegbodu also commented that the minister’s decision undermines ongoing judicial processes. He referred to a judgment made on February 26, 2016, in favor of Atlas Petroleum International Limited and Engineer Arthur Eze, and mentioned an ongoing case in the federal high court where AMCON is asserting its secured interest in Arik’s assets. Despite a writ of attachment issued on July 18, 2024, the High Court of the FCT instructed all parties to maintain the status quo on July 25, 2024.

“We therefore are perplexed as to the grounding of our fleet, which is an overreach of the ongoing judicial processes and directives of the court,” Ilegbodu added. “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.”

Arik Air’s management has expressed commitment to following the legal process and confidence in the judiciary to resolve the issues fairly. They have urged the authorities to reconsider the decision, lift the grounding order, and allow the airline 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,” Ilegbodu said, also expressing regret for any inconvenience caused to passengers.

FG suspends Arik Air operations, airline mgt kicks

(TheCable)