Arik Air, a domestic airline in Nigeria, has had its planes grounded by aviation authorities over a disputed $2.5 million debt.
The Nigerian Airspace Management Agency (NAMA) announced on Tuesday that the grounding was based on a directive from the enforcement department of the FCT High Court. The debt is owed by Arik Air to Atlas Petroleum International Ltd.
According to NAMA, “On July 19, 2024, the enforcement department of the FCT High Court implemented an order related to a $2.5 million debt owed by Arik Air to Atlas Petroleum International Ltd. The court also issued a public auction notice for the aircraft, scheduled for July 26, 2024, if the judgment debt remained unpaid. These notices were served to our agency and the supervising Minister of Aviation.”
The issue traces back to March 8, 2016, when a Lagos State High Court ruling went against Arik Air. The airline’s appeal to the Court of Appeal was dismissed on September 30, 2021. Arik Air then sought permission to appeal the ruling at the Supreme Court. However, on January 9, 2024, the Supreme Court rejected their application.
Atlas Petroleum later registered the Lagos State judgment in the FCT High Court. On June 26, 2024, Justice O. A. Adeniyi issued an order to seize Arik Air’s movable assets, including aircraft with the registrations B737-700/5N-MJF, B737-800/5N-MJQ, DASH8-Q400, and 5N-BKX, to satisfy the judgment debt.
Arik Air reportedly secured an ex parte order to halt further execution of the initial court directive, though NAMA stated it had not yet been officially served. In compliance with the Supreme Court’s ruling and to preserve the disputed aircraft, NAMA has grounded the planes to prevent them from leaving the court’s jurisdiction or being altered in a way that might interfere with the legal process.
A statement from NAMA added, “The Minister, a Senior Advocate of Nigeria, understands the importance of adhering to Supreme Court rulings and will not risk his professional standing by undermining the court’s decisions. Both parties are urged to resolve the matter swiftly so that the affected Arik Air aircraft can return to operation.”
