The Federal Government has grounded Arik Aircraft due to a court order concerning a $2.5 million debt owed to Atlas Petroleum International Ltd.
This was contained in a statement issued by the Nigerian Airspace Management Agency (NAMA), signed by it’s director of public affairs and consumer protection, Alhaji Abdullahi Musa on Tuesday, July 30, 2024.
The statement emphasised that the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, SAN, respects the implications of the court order. “Being a member of the Inner Bar himself, he understands the implications 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,” it read.
On July 19, 2024, the enforcement department of the FCT High Court enforced an order regarding a $2.5 million debt owed by Arik Airline to Atlas Petroleum International Ltd. by attaching their aircraft. Arik was notified of a public auction of the planes slated for July 26, 2024, if the judgment debt remained unpaid. These notices were served on NAMA and the Minister of Aviation.
Records indicate that on March 8, 2016, Arik appealed a High Court of Lagos State decision that entered judgment against it. However, on September 30, 2021, the Court of Appeal dismissed Arik’s appeal unanimously, with costs. Arik then sought leave to appeal the decision to the Supreme Court, but on January 9, 2024, the Supreme Court, per Okoro, J.S.C., delivered a ruling dismissing Arik’s application for leave to appeal.
The judgment creditor registered the judgment of the Lagos State High Court in the High Court of FCT. On June 26, 2024, Honorable Justice O. A. Adeniyi, sitting in Court 8, Maitama, Abuja, ordered the attachment of all movable properties belonging to Arik, including their aircraft with Registration Nos: B737-700/ 5N-MJF, B737-800/ 5N-MJQ, and DASH8-Q400 5N-BKX, in satisfaction of the judgment debt. Copies of the order and certificate of judgment were also served on NAMA and the minister.
Arik has reportedly obtained an ex parte order stopping further execution of the order, although formal service has not yet occurred. Given that the first execution took place by attaching the aircraft, further execution by way of sale can be halted while the parties return to court to resolve the issues. To preserve the subject matter of the present dispute, NAMA has decided to comply with the Supreme Court order by grounding the aircraft to prevent them from being taken out of the court’s jurisdiction or tampered with in any way that could frustrate the court’s orders.
“The minister, being a member of the Inner Bar, understands the gravity of the Supreme Court order and will not risk his professional standing by engaging in any acts that would undermine the order,” the statement said.
The parties involved were encouraged to resolve their issues promptly so that the grounded Arik aircraft can resume flight operations. The resolution of this dispute is essential not only for the concerned parties but also for the broader aviation sector, which depends on the smooth and efficient operation of all its components.
