The Federal government through the Ministry of Aviation and Aerospace Development has ordered that the operations of Arik Air be grounded.
The Minister of Aviation, Festus Keyami made this known on Tuesday, July 30 through a statement on X.
In February 2017, Arik Air was taken over by the federal government via the Asset Management Corporation of Nigeria (AMCON) due to the company’s huge debt profile, estimated at over N300 billion.
The government, following the takeover, immediately dissolved the airline’s management team and appointed a receiver manager.
Reacting to the order of the Minister, Asset Management Corporation of Nigeria (AMCON) which is currently managing the airline, issued a statement signed by Chief Executive Officer, Captain Roy Ilegbodu, stating that the management of the airline under receivership was dismayed by the directive to ground its operations by the Minister.
“The 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,” the airline said.
It also recalled that on February 26, 2016, a judgment was made in favour 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 the 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.
Share this story to friends“We sincerely regret any inconvenience caused to our esteemed passengers,” the statement also said.
