Stop interfering in aviation matters, stakeholders tell minister

Aviation stakeholders have submitted that the Minister of Aviation and Aerospace Development, Festus Keyamo, miscalculated by grounding Arik Air over a $2.5 million debt, noting that the Asset Management Company of Nigeria (AMCON) has an interest in the acquisition of assets of the airline.

They stressed the need for the minister to stop interfering in matters that are best handled at the agency level.

Before the appointment of Receiver Manager in 2017, AMCON already had a Fixed and Floating Debenture Charge on all assets of Arik Air, and the insolvency practice in Nigeria as directed by the Companies and Allied Matters Act (CAMA) as well as the Insolvency Act dictates that all court cases should be stopped once a receiver has been appointed

The stakeholders wondered how AMCON allowed the matter to go all the way to the Supreme Court and while the judgment debtor only applied to have these assets attached recently and not as part of the judgment against Arik.

The critical players, who pleaded anonymity, argued: “The assets do not belong to Arik, and it is not theirs to give. We believe the HMA should have weighed in and allowed Arik to continue to operate the assets while AMCON pursued legal redress because of the workers and the capacity pressure in the industry now.”

The Nigeria Civil Aviation Authority (NCAA), in a statement  issued  by the Director, Public Affairs and Consumer Protection, clarified that it only grounded  three Arik Air aircraft following a court order/attachment, and not the entire fleet, stating that they are duty-bound to comply with the court order attaching Arik Air’s aircraft (5NMJF, 5NMJQ and  5NBKX) following the determination of its case at the Supreme Court, and to ensure compliance with regulatory and safety standards.”

However, another top commentator said the minister committed a “real blunder,” insisting “it goes against everything he has been preaching about developing the dry lease space in Nigeria.”

He added: “It also shows a need to immediately stop interfering in matters that are best handled at the agency level.”

“How do we explain to any financier in the world that security and liens in Nigeria are secure? Isn’t this worse than failing to return an asset upon default, something we’re persistently accused of?” the expert queried.