Arik Air Grounded by Court Order Over $2.5 Million Debt to Atlas Petroleum

Arik Air (W3, Lagos), one of Nigeria’s leading airlines, has had its aircraft grounded following a Federal Supreme Court order related to a USD 2.5 million debt owed to Atlas Petroleum International. The Nigerian Civil Aviation Authority (NCAA) confirmed the grounding, which was initiated due to legal proceedings concerning the airline’s financial obligations.

Michael Achimugu, the NCAA’s director for consumer protection and public affairs, affirmed to ch-aviation that the action was taken based on a court order. The grounding affects several of Arik Air’s operational aircraft, significantly impacting its flight operations across the region.

The Nigerian Airspace Management Agency (NAMA) also confirmed the enforcement of the court’s decision, stating that it follows directives to ensure compliance with legal judgments. The directive came after the Federal High Court in Abuja, on June 25, mandated the sale of specific Arik Air assets, including three aircraft and hangars, to settle the debts with Atlas Petroleum International.

The aircraft specified in the court order include:

• A 149-seater Boeing 737-700, 5N-MJF (msn 34762), aged 16.75 years.
• A 146-seater Boeing 737-800, 5N-MJQ (msn 38971), aged 14.79 years.
• A 70-seater DHC-8-Q400, 5N-BKX (msn 4470), aged 10.11 years.

While the enforcement of the court’s order began with the attachment of these aircraft, Arik Air has managed to obtain an ex parte order to halt further actions, although it had not been formally served at the time of enforcement. This legal maneuver seeks to pause the sale of the attached assets while the issues continue to be addressed in court.

In the interim, to ensure the aircraft remain within the jurisdiction and are not tampered with or removed, NAMA has decided to keep the aircraft grounded. This move aligns with the need to comply with the Supreme Court’s ruling while providing time for the resolution of the ongoing legal disputes.

Arik Air, which has been under the management of the state-run Asset Management Corporation of Nigeria (AMCON) since 2017, faces significant operational disruptions due to this grounding. The airline’s fleet, as listed by ch-aviation, includes five Boeing 737-700s, three Boeing 737-800s, three Dash-8-Q400s, and three CRJ900s, highlighting the potential scale of impact from the grounding.

The situation is closely monitored by the NCAA, which is also engaging with Arik Air to address the concerns of affected passengers and ensure compliance with all regulatory requirements during this challenging period.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com