Debts: Arik Claims Payment of N4b to FAAN in 2014

Chinedu Eze

Arik Air said it paid the Federal Airports Authority of Nigeria (FAAN) N3, 941, 023, 995 in 2014, which included parking and landing fees; rent, passenger service charge ( PSC) and fuel surcharge.

The company made the clarification following the allegation by FAAN that it owed the agency N1.2 billion debts, which included PSC and others. The airline’s alleged indebtedness led to the grounding of its operation from Abuja on Thursday.

THISDAY gathered that in January 2014, Arik paid to FAAN, N335, 562, 212. 50; in February 2014 it paid to FAAN, N318, 575, 002. 50. In March 2014, the airline paid to FAAN, N327, 359, 180. 00. In April 2014 it paid N370, 417, 622. 50. In June 2014, Arik paid to FAAN, N349, 471 655.00 and in July 2015, the airline paid to FAAN, N315, 530, 737.50. Also in September the airline paid to FAAN, N344, 486, 305 and in December 2014, it also paid to FAAN, N447, 232, 602. 50.

But FAAN insisted that the airline owed it N1.2 billion debts at the Nnamdi Azikiwe International Airport, Abuja, which led to the Association of Air Transport Service Senior Staff Association (ATSSSAN) and the National Union of Air Transport Service Employees (NUATE) in Abuja to ground the airline’s operations on Thursday.

THISDAY learnt the airline was forced to cancel a total of 37 flights, leaving 5, 520 passengers meant to travel to various destinations from the Federal Capital Territory stranded.

But FAAN had decried the huge indebtedness owed it by the airlines, which prompted it to introduce pay-as-yougo passenger service charge payment, whereby the airlines were meant to purchase the PSC ticket in advance as the charge is included in each passenger’s ticket.

In 2012 FAAN grounded the operations of Arik Air over debts and during negotiation over the debts, it was agreed that while the old debts would be sorted out, thenceforth the airline should pay its charges as it accrued. The airline said it has been paying its debts to FAAN as it accrued since then.

The failure of domestic airlines to pay their debts to FAAN has affected the agency’s strategic projects, including the rehabilitation of airports, an on-going project that has been stranded due to lack of funds.

A statement issued by the airline in reaction to the grounding of its flights on Thursday read: “Arik Air insists that it does not owe FAAN any money since the agency’s charges are paid in advance (pay-as-you-go basis). This has been the practice for over two years when all the aviation agencies introduced pay-as-you-go for their services. The bogus debt claim by FAAN is therefore unacceptable to Arik Air.

“The Honourable Minister of Aviation, Chief Osita Chidoka had earlier stepped into the lingering debt issue between FAAN and Arik Air and had directed that a firm of auditors be engaged to reconcile the books. This process has not been concluded before the latest action by FAAN this Thursday morning.”