FAAN Battles Arik Airlines Over N11 Million Debt

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The legal tussle between Arik Airline and Federal Airports Authority of Nigeria, (FAAN) over indebtedness of N11 billion and $942,147.02 at the Federal High Court sitting in Lagos has been adjourned again till 10th of February, 2016. According to the statement of claim filed on behalf of FAAN before the court by Ridwan Bello of Multi sector Law group, it was alleged that Arik Airlines’ arrears for services and use of facilities at the Murtala Muhammed International Airport, Lagos; Nnamdi Azikwe International Airport, Abuja; Mallam Aminu Kano International Airport, Kano and Port Harcourt International Airport between 1st of August 2008 and 18th August, 2015 have accumulated to N11,215,279,204 and another $942,147.02).

The Airline was alleged to have denied FAAN the use of the revenue which the statute mandates FAAN to collect as a source of funds for its day-to-day running and upkeep of its operations. The breakdown of the Arik Airline’s indebtedness to FAAN is as follows: FAAN Direct Billing- N3,116,579,449.75.

Outstanding under the era of Maevis Limited- N3,036,785,375.98 and N1,998,004,109.44 being unpaid landing fees and other fees for domestic operations. IATA Direct Billion- N1,809,998,414.07 and N89,593,597.50. Consequently, FAAN is now urging the court to compel the Airline to pay its debts or else it will apply to the court for order of possession and sale of the Airline’s fleet of aircraft in liquidation of the airline’s indebtedness. FAAN is also demanding for the sum of N200 million as legal fees for prosecuting this debt recovery suit.

-Michael Alonge