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  Domestic operation of Arik Air has been grounded by the Nigerian Aviation Authorities. This, according to reports is the result of debts, owed by Arik Air, to Aviation Agencies in the country. What became the debt – Passenger Service Charge (PSC) – should be remitted to the Federal Airports Authority of Nigeria (FAAN), the Nigerian Airspace Management Agency (NAMA) and the Nigerian Civil Aviation Authority (NCAA), accumulated over time, reportedly up to 18 billion naira. FAAN in a statement said, “Earlier today, Thursday September 20, 2012, it was brought to the attention of the management of the Federal Airports Authority of Nigeria that members of the industrial unions in the aviation industry carried out an industrial action, which entailed the disruption of Arik Airlines’ flights, allegedly to recover debts owed by the airline to various agencies in the industry. The management wishes to inform the public that it was not aware of any plan by the unions to embark on the said industrial action as the management considers it to be counter-productive to the current efforts being made by management to recover debts owed FAAN by Arik Airlines and other customers.” “The management wishes to assure the public, particularly air passengers and all other airport users, that we are doing everything possible to address the issue that informed the industrial action by the unions without recourse to violence. We also wish to assure the public that their safety and security remains our top priority at all our airports, including the Murtala Muhammed Airport, Lagos” Passengers were reported to be stranded at domestic airports, and the trend will grow, if the ban is not lifted – fast. Arik Air is the largest of the three operating Airlines in the country; in its official statement on the ban it said, “This issue borders on personal interests and not payment of bills, since FAAN has been collecting their charges in advance for 18 months now.” The Managing Director of Arik Air, Chris Ndulue further said that, “This is only a calculated attempt to punish the airline and tarnish its image. They are witnesses to the reputation of Arik Air as a young and upwardly mobile airline. For the record, Arik Air does not owe FAAN as is being alleged by the agency. We want to state that FAAN has been collecting its charges over the last 18 months when it introduced the pay-as-you-go regime” “This year alone, we have paid over 2 billion naira to FAAN, 35% of total airline revenues in Nigeria are paid back to government agencies. But several figures are currently being bandied by FAAN as Arik Air’s indebtedness to government agencies.”

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This article was first published on 21st September 2012

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