Arik Airlines is currently facing a major setback as the Nigerian Airspace Management Agency (NAMA) has grounded its planes from international travel. This action comes as a result of a court order related to a $2.5 million debt owed by Arik to Atlas Petroleum International Ltd. The Federal Capital Territory (FCT) High Court executed the enforcement of this order on July 19, 2024, which involved attaching Arik’s aircraft as collateral to secure the debt.
The legal proceedings began on March 8, 2016, when the Lagos State High Court ruled against Arik Airlines. Despite the airline’s attempts to appeal, the decision was upheld by the Court of Appeal on September 30, 2021. Further appeals to the Supreme Court were dismissed on January 9, 2024. The Supreme Court, through Justice Okoro, J.S.C., dismissed Arik’s application for leave to appeal.
On June 26, 2024, the judgment creditor registered the judgment with the High Court of the FCT. Following this, Honorable Justice O. A. Adeniyi ordered the attachment of Arik’s movable properties, including several aircraft. NAMA was served with copies of the order and the certificate of judgment.
NAMA’s Decision and Rationale
To comply with the Supreme Court’s order and preserve the integrity of the court’s decision, NAMA has decided to ground Arik’s aircraft. This measure aims to prevent the planes from being taken out of the jurisdiction or tampered with, which could undermine the court’s order. NAMA emphasized that the Minister, a member of the Inner Bar, understands the gravity of the Supreme Court’s order and would not engage in actions that could jeopardize his legal standing.
NAMA has encouraged both parties to resolve their dispute promptly to allow the grounded Arik aircraft to resume operations. The agency’s statement reflects a desire to facilitate a swift resolution to minimize disruptions.
Response from the Federal Airports Authority of Nigeria
In response to the grounding, the Federal Airports Authority of Nigeria (FAAN) has announced measures to assist affected passengers. FAAN has instructed airport managers nationwide to support passengers as Arik Airline works on rebooking and transferring them to alternative flights. The authority acknowledged the situation on its X account, emphasizing its commitment to assisting passengers during this period.
This development casts uncertainty on Arik Airline’s future, particularly with the potential ban and sale of its aircraft. However, Arik’s ability to resolve this dispute could demonstrate the airline’s resilience and capacity to continue operating within the country.
