Nigerian Aviation Authorities Ground Arik Air Aircraft Over $2.5 Million Debt
In a move to enforce a court order, the Nigerian Airspace Management Agency (NAMA) has grounded four aircraft belonging to Arik Air due to a controversial debt of $2.5 million owed to Atlas Petroleum International Ltd. The grounding follows an order by the FCT High Court, which attached the aircraft to satisfy the judgment debt.
According to NAMA, the debt was owed by Arik Air to Atlas Petroleum, and on July 19, 2024, the enforcement department of the FCT High Court enforced an order made by the court regarding the debt. Arik Air was given a notice of public auction for the planes, which was slated to take place on July 26, 2024, if the debt was not paid.
The dispute began in 2016 when Arik Air appealed a judgment made by the High Court of Lagos State against it to the Court of Appeal. The appeal was dismissed on September 30, 2021, with cost. Arik Air then appealed to the Supreme Court for leave to appeal, but the application was dismissed on January 9, 2024.
In response to the Supreme Court’s decision, the Judgment Creditor registered the judgment in the High Court of FCT, and on June 26, 2024, Honorable Justice O. A. Adeniyi made an order attaching the moveable properties of Arik Air, including the aircraft, to satisfy the judgment debt.
Although Arik Air has obtained an exparte order stopping further execution of the order, NAMA has decided to ground the aircraft to preserve the subject matter of the dispute and prevent tampering with the court’s jurisdiction. The Minister of Aviation, who is also a member of the Inner Bar, understands the implications of the Supreme Court’s order and will not engage in acts that would frustrate the court’s decision.
The parties to the dispute are encouraged to resolve their issues as quickly as possible to allow the Arik aircraft in question to resume flight operations.