Ground handling companies have withdrawn services from XEJet Airlines over an alleged N300 million debt, with the action affecting some of the airline’s operations.
The Aviation Ground Handlers Association of Nigeria, AGHAN, directed its members to stop providing ground handling services to the airline after it allegedly failed to honour payment plans agreed with the companies.
AGHAN President, Mr Olaniyi Adigun, and Vice President, Mr Bashir Ahmed, announced the decision in a joint statement on Monday in Lagos.
Adigun said the association took the action after repeated efforts to recover the outstanding payments failed.
He said the withdrawal had reportedly affected XEJet’s operations, adding that the airline allegedly diverted some passengers’ check-in luggage to another domestic airline.
Adigun said several indigenous airlines had complied with payment arrangements reached with ground handling companies, but XEJet allegedly failed to do so.
He said AGHAN members had also engaged the airline’s management several times over the debt without success.
“We decided to direct our members to withdraw services from XEJet Airlines because it has over time failed to meet its payment plans.
“Our members have made every effort to ensure that the airline complied, but its management has been recalcitrant,” Adigun said.
He said the situation had increased financial pressure on ground handling companies, which depend on service revenue to maintain equipment and improve staff welfare.
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“As it stands, the company owes our members about N300 million. Hence, we have instructed our members to withdraw services from the airline.
“This has been complied with 100 per cent,” Adigun said.
He warned that ground handlers would take similar action against other airlines that failed to honour agreed payment plans for services rendered.
Adigun, however, acknowledged the operational and financial difficulties facing businesses across the aviation sector.
He said ground handling companies were also affected by the prevailing economic pressures on businesses.
The latest action followed a seven-day ultimatum earlier issued by AGHAN to domestic airlines with outstanding debts.
Under the ultimatum, affected airlines were required to settle at least 75 per cent of their outstanding obligations or risk suspension of ground handling services.
The association reached the decision at an executive meeting with its members to address growing airline indebtedness to ground handling companies.
AGHAN later suspended the planned action after some affected airlines presented payment plans and began steps to settle their outstanding obligations.
As of the time of filing this report, XEJet’s management had yet to respond to the withdrawal notice.
NAN
