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Tuesday 30 July 2024

Arik Air Suspended By Court Over $2.5M Debt — NAMA


The Nigerian Airspace Management Agency (NAMA) has confirmed that Arik Air’s operations were suspended due to a Supreme Court order related to a $2.5 million debt.

NAMA’s Director of Public Affairs and Consumer Protection, Abdullahi Musa, explained that the grounding follows an order from the FCT High Court on July 19, 2024. This order, which was enforced by attaching Arik Air’s aircraft, was issued due to the airline's debt to Atlas Petroleum International Ltd. Musa emphasised that Aviation Minister Festus Keyamo, a Senior Advocate of Nigeria, fully respects the court's ruling and would not jeopardise his legal standing by ignoring it.

“Arik was further given a notice of Public Auction of the planes by the Court which was slated to hold on the 26th day of July 2024 if they fail to pay the judgment debt. All these were served on our agency and also on our supervising minister, the Minister of Aviation.

“The records show that on the 8th day of March, 2016, the Judgment Debtor (ARIK) appealed the decision of the High Court of Lagos State entering judgment against it to the Court of Appeal and on 30th September, 2021, the appeal was dismissed by the Court of Appeal in a unanimous decision with cost.

“ARIK again appealed to the Supreme Court for leave to appeal the decision of the Court of Appeal, and on the 9th day of January, 2024, the Supreme Court, per Okoro, J.S.C., delivered its Ruling dismissing the Judgment Debtor’s application for leave to appeal.

“The Judegment Creditor registered the Judgment of the Lagos State High Court in The High Court of FCT and On the 26th day of June, 2024, Honorable Justice O. A. Adeniyi, then sitting in Court 8, Maitama, Abuja) made an order after hearing Motion No: M/9785/2024 filed on behalf of Atlas Petroleum attaching all the moveable properties belonging to the Judgment Debtor, including the Judgment Debtor’s aircraft with Registration No: B737-700/ 5N-MJF, B737-800/ 5N-MJQ, DASH8-Q400 and 5N-BKX in satisfaction of the judgment debt. Copies of the Order and Certificate of Judgment were also served on us and the minister.

“We understand too that Arik has obtained an exparte order stopping FURTHER EXECUTION of the order, though we have not been formally served. In the circumstances, since the first execution took place by attaching the aircrafts, further execution by way of sale can be halted whilst the parties go back to court to resolve the issues.

“However, in order to preserve the subject matter of the present dispute which are the aircrafts 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 aircrafts (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, therefore, urged the parties to the dispute to resolve their issues as quickly as possible so that the Arik aircrafts in question can resume flight operations.

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