…Issue seven-day ultimatum to two airlines over 75% debt

The Association of Ground Handling Companies of Nigeria (AGHAN) has issued a seven-day ultimatum to two major domestic airlines to settle 75 per cent of their outstanding debts or risk suspension of ground handling services.
A joint statement yesterday by the Chairman and Vice-Chairman, Olaniyi Adigun and Bashir Ahmed, respectively, said that the decision followed the executive meeting held Friday last week in Lagos.

According to the statement, the debts owed by the two airlines collectively accounted for more than 70 per cent of the total indebtedness to its member companies.
However, AGHAN, was silent on the two major debtors.

The association also said the affected airlines were expected to pay 75 per cent of their outstanding obligations within seven days, while the remaining 25 per cent would be settled through mutually agreed structured repayment plans to be completed within 90 days.

AGHAN maintained that the prolonged failure by some domestic airlines to meet their financial obligations had placed considerable pressure on ground handling companies, affecting their ability to meet commitments to employees, suppliers, statutory stakeholders, lenders and shareholders.
The association also warned that the situation could weaken the ability of ground handlers to sustain investments required to maintain safe and efficient operations.

The statement read in part: “The persistent failure of some client’s airlines to meet their financial obligations has placed considerable financial pressure on ground handling companies, affecting their ability to meet their own obligations to employees, suppliers, statutory stakeholders, lenders and shareholders, as well as to sustain the substantial investments required for safe and efficient ground handling operations.”

The group, however, said that it recognised the critical role of domestic airlines in Nigeria’s aviation ecosystem, adding that it remained committed to resolving outstanding financial obligations through constructive engagement and mutually acceptable arrangements.

But, noted that the sustainability of ground handling operations depended on a fair and responsible approach to commercial obligations across the aviation value chain.
The association urged the affected airlines to use the seven-day notice period to engage with their respective ground handling companies and fulfil the agreed payment requirements to avert any disruption to services.
AGHAN expressed that the financial difficulties confronting some of its members had not diminished their commitment to safety and service delivery.

It said: “Despite the prevailing financial challenges, AGHAN members will continue to invest in their people, ground support equipment, technology, training, safety systems and quality assurance processes in support of the sustainable development of Nigeria’s aviation industry.”

The association further declared its support with the five-point agenda of the Minister of Aviation and Aerospace Development, Festus Keyamo, and said it supported initiatives aimed at making the Nigerian aviation industry safer, more efficient, commercially sustainable and globally competitive.

It promised further that it would continue to work with domestic and international airlines, the Nigeria Civil Aviation Authority (NCAA), airport authorities and other aviation stakeholders to improve safety, operational efficiency, service delivery and industry sustainability.