The Federal of Nigeria has grounded the Arik Air.
The announcement was made by Festus Keyamo (SAN), Minister of Aviation and Aerospace Development on Tuesday, July 30 on X.
It would be recalled that the Federal Government took over Arik Air through the Asset Management Corporation of Nigeria (AMCON) on February 2017.
The decision was attributed to the huge debt standing against Arik, estimated to be over N300 billion.
As a result of the take-over, the airline’s management team was dissolved and a receiver manager was appointed.
Asset Management Corporation of Nigeria (AMCON) has now reacted to the news of the takeover of Arik.
In a statement signed by its Chief Executive Officer, Captain Roy Ilegbodu, AMCON said the management of Arik under receivership was dismayed by the directive to ground its operations by the Minister.
Ilegbodu said the decision taken without a warning or consultation had profound consequences on Arik’s valued passengers, dedicated employees, and the broader Nigerian economy.
He said the airline’s priority had always been to connect people and facilitate commerce, especially on critical domestic routes.
He said the decision of the aviation ministry disrupted these vital services and left their passengers stranded, even as it inflated the already high travel costs.
“This decision hurts everyday Nigerians who rely on our flights for business, family, and essential activities”, the letter read in part.
Ilegbodu said the action of the ministry also disregarded the ongoing judicial processes.
Arik’s CEO recalled that on February 26, 2016, a judgment was made in favour of Atlas Petroleum International Limited and Engineer Arthur Eze.
Ilegbodu further said there was an ongoing case in the Federal High Court, where AMCON was asserting its secured interest in Arik’s assets.
“Despite this, a writ of attachment was issued on July 18, 2024, targeting our Aircraft, subsequent to which, further to an originating motion filed by AMCON, the High Court of the FCT on July 25, 2024, clearly instructed all parties to maintain status quo. We therefore are perplexed as to the grounding of our fleet, which is an overreach of the ongoing judicial processes and directives of the court,” Ilegbodu said in the letter.
He further stated that the decision undermined the rule of law and set a dangerous precedent, prioritizing unsecured private interests over the public good and the rights of secured creditors.
He urged the authorities to reconsider the decision and allow the airline to continue serving the public.
