The Aviation Ground Handlers Association of Nigeria has directed its members to stop providing services to XEJET Airline over an outstanding debt estimated at N300m.
The association announced the directive on Monday, accusing the airline of repeatedly failing to honour payment arrangements reached with ground handling companies despite several efforts to recover the accumulated debt.
The development has reportedly begun to affect XEJET’s operations, with sources indicating that some of the airline’s passengers’ check-in luggage was transferred to another domestic carrier following the withdrawal of ground handling support.
In a joint statement signed by AGHAN President, Olaniyi Adigun, and Vice President, Bashir Ahmed, the association said a number of indigenous airlines had responded to similar debt concerns by adhering to agreed repayment schedules.
According to the association, XEJET had, however, failed to follow through on its commitments, despite repeated engagements and opportunities to resolve the matter.
AGHAN said the decision to suspend services was necessary to protect the operations and financial stability of its members, who, it noted, also face rising costs associated with equipment, manpower and other operational requirements.
The association said the airline’s outstanding obligations had reached about N300m, prompting its members to fully implement the directive to discontinue services until the debt is addressed.
The handlers, in their statement, also warned that other airlines indebted to their members could face similar sanctions if they fail to comply with agreed payment arrangements for services already rendered.
AGHAN, while acknowledging the difficult economic environment affecting airlines and other businesses across the aviation industry, said ground handling companies were equally operating under significant financial pressures.
The statement read in part, “We decided to direct our members to withdraw services from XEJet Airlines because it has, over time, failed to meet up with its payment plans. Our members have made every effort to ensure that the airline complied, but its management has been recalcitrant.
“We can’t continue to operate like this. Why are some companies not willing to pay for services rendered to them? This is intentional. It is affecting our members at all cadres. We need to increase our equipment, while also boosting the welfare of our staff, but we can’t do this when some organisations are not willing to pay for services rendered to them.
“As it stands, the company owes our members about N300m. Hence, we have instructed our members to withdraw services from the airline, and this has been complied with 100 per cent.”
The withdrawal of service followed the handlers’ earlier seven-day ultimatum to domestic airlines with outstanding obligations to ground handling companies.
Under the earlier directive, affected airlines were required to pay at least 75 per cent of their outstanding debts or risk having their ground handling services suspended.
The ultimatum followed an executive meeting between AGHAN and its members to address the increasing level of indebtedness by airlines and its impact on the operations of ground handling companies.
The proposed industrial action was later suspended after some of the affected airlines submitted payment plans and began taking steps towards clearing their outstanding obligations.
XEJET was, however, said to have failed to meet the terms of its arrangement, leading to the latest decision by AGHAN to withdraw ground handling services from the airline.
The association maintained that its members would continue to withhold services from XEJET until the airline settles its outstanding obligations or reaches a satisfactory arrangement with the affected ground handling companies.
They has been chasing the airline for a response, as calls and text messages of enquiry sent to the spokesperson of the airline, Juliet Atikpekpe, were neither picked up nor responded to.
