Nigerian government suspends Arik Air operations. Read about the causes and consequences of this major development.
On Tuesday, Festus Keyamo – the Minister of Aviation and Aerospace Development- announced that an instant directive has been given by the federal government to halt all Arik Air aircraft operations.
This decision was not accompanied by any specific reasons from the minister.
Expressing his dismay, Roy Ilegbodu – CEO of Arik Air (currently under receivership) highlighted that the sudden order was made without any prior warning or consultation.
He stressed how this directive would significantly impact not only the airline but also its passengers and employees as well as Nigeria’s wider economy.
Ilegbodu expressed the dismay of Arik Air’s management (currently under receivership) at the unexpected instruction from the aviation minister to halt our planes.
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He noted that this directive, issued without prior notice or discussion, would have grave consequences for our esteemed customers, committed staff members and Nigeria’s overall economy.
Ilegbodu emphasized that Arik Air’s fleet being grounded would result in the disruption of vital domestic routes, stranding passengers and causing travel expenses to rise.
He further highlighted Arik Air’s commitment towards connecting people and enabling commercial activities.
Arik Air was taken over by the federal government through the Asset Management Corporation of Nigeria (AMCON) in February 2017, owing to its sizeable debt which surpassed N300 billion.
After assuming control, Arik’s management team was disbanded and a receiver manager nominated by the government took charge.
According to Ilegbodu, the minister’s decision has disregarded current legal proceedings. He pointed out that a favorable ruling was issued on February 26, 2016 in favor of Atlas Petroleum International Limited and Engineer Arthur Eze, and highlighted an ongoing case at the federal high court where AMCON is asserting its secured interest in Arik’s assets.
Although a writ of attachment was granted on July 18, 2024 by the High Court of FCT , all parties were instructed to maintain their respective positions as they currently are as per order dated July25th2o24 .
Ilegbodu expressed confusion regarding the justification for grounding our fleet, as it exceeds limitations imposed by current legal proceedings and court mandates.
This move, in his opinion, disregards lawful procedures and creates a hazardous precedent that favors unsecured private interests over public welfare and secured creditors’ rights.
The administration of Arik Air has affirmed their dedication to adhering to the lawful procedures and having trust in the judiciary system with regards to settling matters fairly.
They have requested that those in authority reconsider their ruling, repeal the suspension mandate, and let the airline persist its operations for public service as well as economic growth purposes.
Ilegbodu expressed support for passengers and employees during this difficult time, assuring that they are continuously working towards a solution.
He also conveyed regret for any inconvenience caused to passengers and greatly appreciated their understanding and support.
