5N-OSA
8th Mar 2009, 10:13
The Federal Airports Authority of Nigeria (FAAN) yesterday grounded the operations of Arik Air, Afrijet Airlines, Bellview Airlines, Virgin Nigeria Airways and IRS airlines for major part of the day following an N8 billion debt owed the agency by the airlines, the authority's General Manager, Public Affairs, Mr. Akin Olukunle, has said.
Consequently, flight operations of the affected airlines that were confirmed to be indebted to the Authority by up to N5 million were grounded for most part of yesterday.
THISDAY investigations revealed that passengers, who were unaware of the development, became stranded at various airports and waited for hours till late in the day.
It was also gathered that the decision to ground the airlines was taken on Friday when the ultimatum given to the operators by FAAN to settle their debts expired.
Before 12 noon, the aircraft of the airlines that were yet to settle their debts were barred from taking off at the Murtala Muhammed International Airport, Lagos.
Olukunle added that the big stick of the agency also fell on concessionaires like Pan Express, which had its operation halted till they paid their debts.
He also said that by yesterday afternoon, the affected airlines had already started operating which meant that they had probably paid their debts.
“By 12 noon today (yesterday) those airlines were stopped from flying but later in the day I learnt that Bellview, IRS, Arik Air, Afrijet started operating which means that they have paid their debts. I am not in touch with our commercial department, but I know that for them to be allowed to fly means they have paid. We also stopped Pan Express, which is a concessionaire to FAAN.
“Look, it is not only the airlines that are indebted to us, other airport users, concessionaires owe us. We want them to pay these debts even if it is not everything at once but they should start paying because we need the money to maintain these airports," Olukunle said.
Reacting to the action of FAAN, a spokesman of Bellview Airlines, Martha Damina, said Bellview was reconciling its accounts with FAAN and the practice worldwide is for parties to agree to repayment terms after reconciliation.
“In the current economic climate, grounding airlines will be counter-productive. Every country is supporting their industry to cope with the current global economic down-turn. This type of action runs the risk of portraying the industry as if it is in crises, and it will not serve Nigeria’s long term economic interest and the general public. Government should help build confidence. We made some payments to FAAN," Damina said.
Reacting in the same vein, Spokesman of IRS Airlines, Solomon Ibharunaefbe, told THISDAY in a telephone interview that the airline management has been talking with FAAN, and that the IRS operations were not grounded.
“We operated from Calabar to Abuja; from Abuja to Kano today (yesterday)," he said.
The Minister of Aviation, Babatunde Omotoba, last month frowned against the indebtedness by airlines and other airport users to FAAN and gave them ultimatum to liquidate the debts.
That ultimatum expired last Friday, hence FAAN decided to ground the airlines. But a top official in the Presidency condemned the action of FAAN as he said the airlines should be encouraged rather than being subjected to actions that will threaten their business at this time of severe economic situation where airlines in the world rarely make profit.
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Looks like I saw this coming..... I hear Ariks owes everybody...
Consequently, flight operations of the affected airlines that were confirmed to be indebted to the Authority by up to N5 million were grounded for most part of yesterday.
THISDAY investigations revealed that passengers, who were unaware of the development, became stranded at various airports and waited for hours till late in the day.
It was also gathered that the decision to ground the airlines was taken on Friday when the ultimatum given to the operators by FAAN to settle their debts expired.
Before 12 noon, the aircraft of the airlines that were yet to settle their debts were barred from taking off at the Murtala Muhammed International Airport, Lagos.
Olukunle added that the big stick of the agency also fell on concessionaires like Pan Express, which had its operation halted till they paid their debts.
He also said that by yesterday afternoon, the affected airlines had already started operating which meant that they had probably paid their debts.
“By 12 noon today (yesterday) those airlines were stopped from flying but later in the day I learnt that Bellview, IRS, Arik Air, Afrijet started operating which means that they have paid their debts. I am not in touch with our commercial department, but I know that for them to be allowed to fly means they have paid. We also stopped Pan Express, which is a concessionaire to FAAN.
“Look, it is not only the airlines that are indebted to us, other airport users, concessionaires owe us. We want them to pay these debts even if it is not everything at once but they should start paying because we need the money to maintain these airports," Olukunle said.
Reacting to the action of FAAN, a spokesman of Bellview Airlines, Martha Damina, said Bellview was reconciling its accounts with FAAN and the practice worldwide is for parties to agree to repayment terms after reconciliation.
“In the current economic climate, grounding airlines will be counter-productive. Every country is supporting their industry to cope with the current global economic down-turn. This type of action runs the risk of portraying the industry as if it is in crises, and it will not serve Nigeria’s long term economic interest and the general public. Government should help build confidence. We made some payments to FAAN," Damina said.
Reacting in the same vein, Spokesman of IRS Airlines, Solomon Ibharunaefbe, told THISDAY in a telephone interview that the airline management has been talking with FAAN, and that the IRS operations were not grounded.
“We operated from Calabar to Abuja; from Abuja to Kano today (yesterday)," he said.
The Minister of Aviation, Babatunde Omotoba, last month frowned against the indebtedness by airlines and other airport users to FAAN and gave them ultimatum to liquidate the debts.
That ultimatum expired last Friday, hence FAAN decided to ground the airlines. But a top official in the Presidency condemned the action of FAAN as he said the airlines should be encouraged rather than being subjected to actions that will threaten their business at this time of severe economic situation where airlines in the world rarely make profit.
*****************************************
Looks like I saw this coming..... I hear Ariks owes everybody...