Arik Air Grounded by Minister’s Order – Management Protests Decision

In a surprising turn of events, Arik Air, one of Nigeria’s major airlines, has been grounded following an abrupt order from the Minister of Aviation. The airline’s management, currently under receivership, expressed dismay at the decision, reportedly made without prior warning or consultation.

Gatekeepers News reports that Captain Roy Ilegbodu, Chief Executive Officer of Arik Air (In Receivership), issued a press statement on July 30, 2024, highlighting the significant impact of this decision on passengers, employees, and the broader Nigerian economy. The airline, which operates critical domestic routes, warns that the grounding will disrupt vital services and potentially inflate high travel costs.

The management also raised concerns about the legality of the grounding order, citing ongoing judicial processes. They pointed to a judgment favouring Atlas Petroleum International Limited and Engineer Arthur Eze on February 26, 2016. Still, they emphasised a current case in the Federal High Court where the Asset Management Corporation of Nigeria (AMCON) is asserting its secured interest in Arik’s assets.

Adding to the complexity, a writ of attachment was issued on July 18, 2024, targeting Arik’s aircraft. However, following an originating motion filed by AMCON, the High Court of the FCT, on July 25, 2024, instructed all parties to maintain the status quo. Arik’s management expressed confusion over the grounding order, viewing it as an overreach of ongoing judicial processes.

The airline argues that this action undermines the rule of law and sets a dangerous precedent by prioritising unsecured private interests over the public good and the rights of secured creditors. Arik Air has pledged to continue following the legal process and expressed faith in the judiciary to resolve these matters fairly.

As the situation unfolds, Arik Air has called on authorities to reconsider the decision and lift the grounding order. The airline has apologised to its passengers for any inconvenience and stated it is working to resolve the situation.

This development raises questions about the future of one of Nigeria’s major airlines and its impact on its aviation sector. As of now, it remains unclear how long the grounding order will remain in effect or what steps will be taken to address the concerns raised by Arik Air’s management.