NAMA grounds Arik aircraft following court order

The Nigerian Airspace Management Agency has grounded Arik Airline aircraft following a court order over a $2.5m debt owed to Atlas Petroleum International Ltd.

The agency disclosed this in a statement by the Director of Public Affairs and Consumer Protection of NAMA, Abdullahi Musa, on Tuesday.

The agency made it known that this development stems from an enforcement action by the Federal Capital Territory High Court on July 19, 2024, which involved attaching Arik’s planes to secure the debt.

“On the 19th day of July 2024, the enforcement department of the FCT High Court enforced an Order made by the Court regarding a debt of $2.5 million owed by Arik Airline to Atlas Petroleum International Ltd. by attaching their aircraft.

“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,” the statement partly read.

The legal battle dates back to March 8, 2016, when the Lagos State High Court entered judgment against Arik Airline.

Despite appealing to the Court of Appeal, the decision was upheld on September 30, 2021, and further attempts to appeal to the Supreme Court were dismissed on January 9, 2024.

“The Supreme Court, per Okoro, J.S.C., delivered its Ruling dismissing the Judgment Debtor’s application for leave to appeal,” the statement detailed.

Following these legal proceedings, the Judgment Creditor registered the judgment in the High Court of the FCT. On June 26, 2024, Honorable Justice O. A. Adeniyi ordered the attachment of Arik’s movable properties, including several aircraft. “Copies of the Order and Certificate of Judgment were also served on us and the Minister,” NAMA noted.

While Arik Airline has since obtained an ex-parte order stopping further execution, NAMA has yet to be formally served. In response, NAMA has decided to ground the aircraft to preserve the subject matter of the dispute.

“We have decided to comply with the effect of the Supreme Court order, by grounding the aircraft (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,” the statement said.

“The Minister, being a member of the Inner Bar himself understands the implication of the Supreme Court Order dismissing the motion for leave to appeal and will not risk his license as a legal practitioner or his privilege as a Senior Advocate of Nigeria by engaging in acts that will frustrate an order of the Supreme Court of Nigeria,” NAMA affirmed.

NAMA has urged the disputing parties to resolve their issues swiftly to allow the grounded Arik aircraft to resume operations.

“The parties to the dispute are encouraged to resolve their issues as quickly as possible so that the Arik aircraft in question can resume flight operations.”

Following this, the Federal Airports Authority of Nigeria announced measures to assist passengers affected by the grounding of Arik Airline.

In a statement, posted on the agency’s X account, FAAN acknowledged the situation, saying, “The Federal Airports Authority of Nigeria is aware that Arik Airline has been grounded due to litigation issues between the airline and their creditors.”

“The Authority has instructed all airport managers across the country to assist the affected passengers as Arik Airline works out plans to rebook and transfer passengers to other available flights,” the statement read.