FAAN, NCAA wade in to assist stranded passengers over grounding of embattled Arik Air

Agencies in the Federal Ministry of Aviation and Aerospace Development, including the Federal Airports Authority of Nigeria (FAAN) and the Nigeria Civil Aviation Authority (NCAA) have waded into the recent grounding of domestic carrier, Arik Air by offering to assist affected customers of the embattled airline.

The agencies, in separate reactions assured stranded passengers of the grounded carrier said they are open to assisting them with measures already deployed for that purpose.

Founded in 2004 by Mr. Joseph Arumemi-Ikhide in 2004, Arik Air has been in Receivership or under Administration by the Asset Management Corporation of Nigeria (AMCON) since February 9, 2017 over a

N280 billion debt to commercial banks and service providers.

AMCON took over the airline as a statutory responsibility under its enabling Act.15 Sept 2023.

It would be recalled that the Enforcement Department of the Federal Capital Territory (FCT) High Court, on July 19, carried out an Order made by the Supreme Court regarding a debt of $US2.5 million owed by Arik Airline to one Atlas Petroleum International Limited by attaching their aircraft.

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.

Meanwhile,

In a statement by the FAAN’s Director of Public Affairs and Consumer Protection, Mrs Obiageli Orah, Arik Air was grounded due to litigation issues between the airline and its creditors.

Also the Authority has instructed all the 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.

Also reacting to the grounding of Arik Air, the Nigeria Civil Aviation Authority (NCAA), said the agency is also monitoring the situation and engaging Arik Air on its plans for affected passengers, adding that its Consumer Protection Officers are available at the terminals to monitor passenger handling and to offer information.

According to the Director of Consumer Protection and Public Affairs, Mr Michael Achimugu  in a statement, Wednesday, air travelers may also walk into the NCAA Consumer Protection offices, identify and speak with their officers for assistance or send an email

“NCAA empathizes with all affected passengers and wishes to assure them of the protection of their rights as critical stakeholders.”

NAMA, acting on the Orders of the Enforcement Department of the Court had effected the grounding of the fleet of Arik Air over a $2.5 million debt owed by the airline.

A statement signed by the Director, Public Affairs and Consumer Protection (NAMA), Alhaji Abdullahi in Lagos, explained that the agency and the Ministry of Aviation and Aerospace Development were served by the court ruling and that Arik Air was indebted to one Atlas Petroleum International Ltd. by attaching its airplanes leading the grounding of the airline’s fleet.

According to NAMA, available records showed that on March 8, 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 September 30, 2021, adding that the appeal was dismissed by the Court of Appeal in a unanimous decision with cost.

“Arik Air 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.”

The NAMA statement pointed out that it equally understood that Arik obtained an exparte order, stopping further execution of the order, but that it was not formally served.

It added that in these circumstances, since the first execution took place by attaching the aircraft, further execution by way of sale could be halted whilst the parties go back to court to resolve the issues.

NAMA stressed that to preserve the subject matter of the present dispute, which are the aircraft in question (the res), the government decided to comply with the effect of the Supreme Court order, by grounding the aircraft (subject of dispute) so that they were not taken out of the jurisdiction of the court or tampered with in a way as to frustrate the courts.

Meanwhile, the Management of Arik Air has lamented that the decision to ground its operations and auction its fleet was ‘made without warning or consultation.’

The airline reacting to its grounding and placement of fleet on auction, warned that the action by the Minister ‘has serious repercussions for our valued passengers, dedicated employees, and the broader Nigerian economy.’

“Management of Arik Air (In Receivership) is dismayed by the sudden order issued by the Honourable Minister of Aviation to ground our Aircraft.

“This decision, made without warning or consultation, has serious repercussions for our valued passengers, dedicated employees, and the broader Nigerian economy.

“Our priority has always been to connect people and facilitate commerce, especially on critical domestic routes. The grounding of our fleet disrupts these vital services, leaving passengers stranded and inflating already high travel costs. This decision hurts everyday Nigerians who rely on our flights for business, family, and essential activities.

“The decision also disregards ongoing judicial processes. On February 26, 2016, a judgment was made in favor of Atlas Petroleum International Limited and Engineer Arthur Eze.

“However, there is an ongoing case in the Federal High Court, where Asset Management Corporation of Nigeria (AMCON) is asserting its secured interest in Arik’s assets.

“Despite this, a writ of attachment was issued on July 18, 2024, targeting our Aircraft, subsequent to which, further to an originating motion filed by AMCON, the High Court of the FCT on July 25, 2024 clearly instructed all parties to maintain status quo.

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

“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.

Arik has always been a proud partner in Nigeria’s growth, providing reliable and safe air travel. We urge the authorities to reconsider this decision, lift the grounding order, and allow us 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.

“We sincerely regret any inconvenience caused to our esteemed passengers,” Arik said.