The Aviation Ground Handlers Association of Nigeria (AGHAN) has directed its members to withdraw ground handling services from XEJet Airlines due to outstanding debts of approximately N300 million. This decision was made after the airline allegedly failed to honour agreed payment plans despite repeated efforts by AGHAN members to recover the debts. The association expressed frustration over XEJet's non-compliance.
According to AGHAN, several indigenous airlines have complied with payment arrangements reached with ground handling companies, but XEJet has remained "recalcitrant." The association threatened to continue withholding services from the airline until its outstanding obligations are settled. XEJet's management has also allegedly failed to engage with AGHAN members in negotiations over the debts.
AGHAN President Olaniyi Adigun and Vice President Bashir Ahmed signed a joint statement explaining the decision. The statement highlighted that members have made every effort to ensure the airline complied with payment plans, but XEJet's management has been uncooperative. The association emphasized that this non-payment affects its members at all levels and hampers their ability to upgrade equipment and improve staff welfare.
The withdrawal of services by AGHAN members has been complied with 100%, according to the association. AGHAN also warned that it would take similar action against any other airline that fails to honour agreed payment plans for services rendered. The association expressed regret over the operational and financial challenges confronting businesses in the aviation sector.
However, AGHAN noted that ground handling companies face the same economic pressures as other businesses in the sector. The latest development follows an earlier seven-day ultimatum issued by the association to some domestic airlines with outstanding debts. The handlers had directed affected airlines to settle at least 75% of their outstanding obligations or risk suspension of ground handling services.
The ultimatum was subsequently suspended after some affected airlines presented payment plans and commenced steps towards settling their obligations. Unfortunately, XEJet failed to comply with the agreed arrangements, leading to the latest directive by AGHAN for its members to withdraw services from the airline. This move may exacerbate the challenges faced by the airline and the aviation sector.
The situation highlights the financial struggles faced by airlines and ground handling companies in Nigeria's aviation industry. The withdrawal of services may impact XEJet's operations and reputation, while also underscoring the need for airlines to honour their financial obligations to service providers. The aviation sector will likely be watching the developments closely.
Key points
- AGHAN withdraws ground handling services from Xejet Airlines over N300 million debt.
- The association had given a seven-day ultimatum to domestic airlines with outstanding debts before taking action against Xejet.
- Ground handling companies face economic pressures similar to those of other businesses in the aviation sector.
