STILL ON ARIK AIR AND FAAN FACE-OFF

Arik Air, which prides itself as the biggest carrier in the country, has crisis on its hands as it haggles with aviation agencies, particularly the Federal Airports Authority of Nigeria over the debts it owes to them.Though the airline has resumed flights after its operations were disrupted last week, its problems with the agencies as far as debts are concerned are not over

Recently, Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) and the National Union of Air Transport Employees (NUATE) stopped Arik Air for its refusal to pay over N20 billion debts owed to the Nigerian Civil Aviation Authority (NCAA), Nigerian Airspace Management Agency (NAMA) and FAAN that service and facilitate its operations. Besides, the airline is also alleged not to have discharged its debt obligations to companies that fuel its aircraft, companies that handle its cargoes as well as those small firms that made its furniture.

While the fuel marketers have adopted the ‘pay-before-service’ method to relate with the airlines, the smaller firms have resigned themselves to fate. Worst still, the Central Bank of Nigeria (CBN) had instructed banks not to grant further credit to the airline. According to CBN, the airline has an outstanding bank loan of N85.481 billion.

But one debt that has stood out like a sore thumb is the N7.077 billion and another $44, 000 that the airline owes to FAAN. The managing director of FAAN, Mr. George Uriesi said the monies in question had been invoiced to the airline over the years that have not been paid. The figure is contested by Arik which insists that it owes the agency about N1.6 billion debt outstanding before the authority introduced the pay- as –you- go system of payment.

“Airlines, particularly Arik were never remitting this money to FAAN. So we decided about 18 months ago to going back to what airports used to do in the 60s, printing special tickets for the passenger service charge to force the airline to buy upfront. If we allow it to be on the tickets, they will ever remit the money to us" Uriesi

The management of FAAN has continuously engaged with the management of Arik Air about this reality, but the airline has continued to make excuses why it will not honour its obligations to FAAN”, said Uriesi.

One of the excuses is that FAAN should pay compensation on its (Arik) aircraft that was damaged at the Margaret Ekpo International Airport, Calabar.

It would be recalled that on April 1, 2010 an Arik Air Boeing 737-700, marked 5N-MJJ performing flight W3-506 from Calabar to Abuja with 95 passengers, was just in the process of boarding, when a local taxi broke through two security gates at the airport at high speed, drove across the apron and got stuck directly underneath the aircraft. Though no injuries occurred the aircraft received minor damage. Uriesi said the claim against which the airline wants FAAN to offset, from the international best practices perspective “Is not workable; so we have refused not to accept liability.”

Arik’s claim raises the issue of insurance cover for the aircraft. The managing director of NAMA, Mr. Nnamdi Udoh raises some posers. “Did they insure the aircraft when the incident happened? And if they did, was there any loss adjustment, were they paid? And if they were paid, then, why ask FAAN to pay? If an aircraft is damaged, such an aircraft is covered by insurance”,

Again, Arik is asking for a waiver on landing fees in Lagos, a demand that FAAN has strongly refused to grant.

“FAAN does not charge Arik parking fee in Lagos as its base. The insinuation they make to the public is untrue. They are asking not landing fee to be waived. There is nowhere in the world where that is done. You cannot bully us and say you will not fly until we stop charging you for landing fee in Lagos. That is not going to happen’,.

Meanwhile, Arik has found favour with the chairman, senate committee on aviation, Mr. Hope Uzodinma, who wrote FAAN directing it to stay action on the recovery of the debt.

Uzodinma’s personal letter dated August 2, 2012 and addressed to the managing director of FAAN, Mr. George Uriesi and copied to the minister of aviation, Princes Stella Oduah, warned FAAN from taking any hasty decision that is capable of destabilising the industry.
This is serious Shaaaaa!!!