Arik Air operations grounded over N12.5 billion debt

News Express |20th Apr 2016 | 3,662
Arik Air operations grounded over N12.5 billion debt

Aviation unions have grounded the operations of Nigeria’s carrier, Arik Air, over what they described as a large debt of N12.5 billion to Federal Airports Authority of Nigeria (FAAN).

The unions shut down the airline’s operations on Wednesday after yearlong negotiations failed.

Passengers are the most hit following the dispute as hundreds of them could not embark on their journey.

Arik Air has confirmed the development. In a press statement issued by its management, the airline said the action by the workers’ union is connected with the long-standing and unsubstantiated claim by FAAN of high indebtedness to the agency which is now before a Federal High Court in Lagos at the instance of FAAN.

Arik said this is not the first time that FAAN workers’ unions would be taking the laws into their hands by disrupting its operations. The statement said that the airline is compelled to suspend all domestic operations for today, and this will remain in force until the unfortunate situation is resolved.

•Adapted from a Channels TV report.

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