The Aviation Ground Handlers Association of Nigeria (AGHAN) has directed its members to stop providing services to XEJET Airline due to an outstanding debt of approximately N300m. This decision was made public on Monday, following the airline's repeated failure to honour payment arrangements despite several efforts to recover the accumulated debt. As a result, XEJET's operations have begun to be affected, with some passengers' check-in luggage being transferred to another domestic carrier.
According to AGHAN, XEJET had failed to adhere to agreed repayment schedules, unlike some other indigenous airlines that have responded to similar debt concerns. The association stated that its members have made every effort to ensure the airline complied with payment plans, but its management has been recalcitrant. AGHAN emphasized that the decision to suspend services was necessary to protect the operations and financial stability of its members, who face rising costs associated with equipment, manpower, and other operational requirements.
The association warned that other airlines indebted to their members could face similar sanctions if they fail to comply with agreed payment arrangements for services already rendered. AGHAN acknowledged the difficult economic environment affecting airlines and other businesses across the aviation industry but noted that ground handling companies are equally operating under significant financial pressures. The association stressed that it cannot continue to operate under these conditions, with some companies intentionally refusing to pay for services rendered.
The withdrawal of service followed a seven-day ultimatum issued to domestic airlines with outstanding obligations to ground handling companies. Affected airlines were required to pay at least 75 per cent of their outstanding debts or risk having their ground handling services suspended. Although the proposed industrial action was later suspended after some airlines submitted payment plans, XEJET failed to meet the terms of its arrangement, leading to the latest decision by AGHAN to withdraw ground handling services.
AGHAN maintained that its members would continue to withhold services from XEJET until the airline settles its outstanding obligations or reaches a satisfactory arrangement with the affected ground handling companies. The association's president, Olaniyi Adigun, and vice president, Bashir Ahmed, signed a joint statement emphasizing the need for XEJET to address its debt. The statement highlighted the impact of the airline's actions on the operations and welfare of ground handling companies' staff.
The economic pressures faced by ground handling companies have made it difficult for them to increase their equipment and boost staff welfare. AGHAN stressed that the situation has affected its members at all levels, making it essential to take action against airlines that fail to pay for services rendered. The association's decision to suspend services to XEJET has been complied with 100 per cent, according to AGHAN.
The Punch Newspaper has been trying to get a response from XEJET, but calls and text messages sent to the airline's spokesperson, Juliet Atikpekpe, were neither picked up nor responded to. The airline's failure to respond has left the situation unresolved, with AGHAN's members continuing to withhold services until a satisfactory arrangement is reached.
Key points
- - The Aviation Ground Handlers Association of Nigeria (AGHAN) has suspended services to XEJET Airline due to an outstanding debt of approximately N300m. - The association's decision was made after the airline failed to honour payment arrangements despite several efforts to recover the accumulated debt. - AGHAN has warned that other airlines indebted to their members could face similar sanctions if they fail to comply with agreed payment arrangements.
