Arik Airline Grounded Over $2.5 Million Debt To Atlas Petroleum

The Nigerian Airspace Management Agency (NAMA) has suspended Arik Airline's operations due to a $2.5 million debt owed to Atlas Petroleum International Ltd.

NAMA's director of public affairs and consumer protection Abdullahi Musa announced the suspension on Tuesday after a court ruling related to the debt case.

"On the 19th day of July 2024, the enforcement department of the FCT High Court enforced an Order made by the Court regarding a debt of $2.5 million owed by Arik Airline to one Atlas Petroleum International Ltd by attaching their aircraft," Musa said, Premium Times reported.

NAMA stated that all relevant documents were served to their agency and Aviation Minister Festus Keyamo.

The agency explained that on March 8, 2016, Arik Airline appealed the Lagos High Court's decision to the Court of Appeal. However, the Court of Appeal dismissed Arik's appeal on Sept. 30, 2021, with costs, in a unanimous decision.

According to NAMA, Arik appealed to the Supreme Court to challenge the decision, but on Jan. 9 this year, the Supreme Court rejected their appeal.

The agency said the judgment was recorded at the FCT High Court. Justice O. A. Adeniyi on June 26 issued an order after reviewing a motion filed by Atlas Petroleum.

Arik Air alongside the aviation minister received copies of the court order and Certificate of Judgment. However, the airline obtained a temporary order to stop further action on the court ruling, even though they were not officially served this order.

"To preserve the subject matter of the present dispute which are the aircraft in question (the res), which have already been attached, we have decided to comply with the effect of the supreme court order, by grounding the aircraft (subject of dispute) so that they are not taken out of the jurisdiction of the court or tampered with in a way as to frustrate the courts," NAMA mentioned.

The aviation minister understands the impact of the Supreme Court's order rejecting the appeal, as per NAMA.

"The minister will not risk his licence as a legal practitioner or his privilege as a Senior Advocate of Nigeria by engaging in acts that will frustrate an order of the Supreme Court of Nigeria," NAMA added, urging everyone involved to resolve the issue quickly.

In response to the court order, the Chief Executive Officer of Arik Roy Ilegbodu claimed that this decision was made without giving any warning, stressing that the decision made a serious impact on the airline's passengers, dedicated employees and the 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," Ilegbodu said. "This decision hurts everyday Nigerians who rely on our flights for business, family, and essential activities."