Members of the Aviation Ground Handlers Association of Nigeria have suspended ground handling services to XEJet Airlines due to an outstanding debt of approximately N300 million. The association stated that despite previous efforts to resolve the dispute, the airline had failed to meet its payment commitments. As a result, ground handling companies have withdrawn their services, affecting XEJet's handling arrangements at the airport. Passengers' luggage has been transferred to another airline as an alternative arrangement.
The Aviation Ground Handlers Association of Nigeria, led by President Olaniyi Adigun and Vice President Bashir Ahmed, disclosed the development in a joint statement. According to the association, ground handling companies had tried to resolve the dispute by engaging with XEJet and accepting payment arrangements proposed by its management. However, these efforts did not produce the expected result, prompting the withdrawal of services. The association stated that it had instructed its members to withdraw services from XEJet Airlines, and this directive had been complied with 100 per cent.
The suspended services include baggage handling, passenger processing, and ramp support, which are essential for airlines to operate smoothly. The association expressed concern that the failure of airlines to settle bills for services already provided was placing additional financial pressure on ground handling companies and threatening their ability to sustain operations. The association emphasized that it was unfair for some companies not to pay for services rendered to them.
This is not the first time the Aviation Ground Handlers Association has taken action against indebted airlines. Earlier, the association had given affected carriers a seven-day window to settle at least 75 per cent of their debts or face withdrawal of ground handling support. Some airlines had submitted payment proposals and begun implementing them, but XEJet failed to meet the terms agreed with its members. As a result, the association imposed sanctions on XEJet.
The dispute has significant implications for Nigeria's aviation industry, where airlines and service providers depend on each other for the uninterrupted movement of passengers and aircraft. The financial pressures confronting operators in the industry have been exacerbated by the COVID-19 pandemic and other economic challenges. The association's action highlights the need for airlines to prioritize their financial obligations to service providers.
The N300 million debt owed by XEJet Airlines has accumulated over time, with the airline failing to meet its payment plans. The association stated that its members had made every effort to ensure that the airline complied with its payment commitments, but XEJet's management had been recalcitrant. The withdrawal of ground handling services has affected XEJet's operations, and the airline had not publicly responded to the allegation of indebtedness or the withdrawal of services.
The latest development adds to the challenges facing XEJet Airlines, which has not publicly commented on the issue. The suspension of ground handling services will likely have a significant impact on the airline's operations and reputation. The Aviation Ground Handlers Association has urged airlines to prioritize their financial obligations to service providers to avoid similar sanctions in the future.
Key points
- Aviation Ground Handlers Association suspends services to XEJet Airlines over N300m debt.
- Ground handling companies provide essential airport services, including baggage handling and passenger processing.
- The dispute highlights the financial pressures confronting operators in Nigeria's aviation industry.
