FAAN battles Arik Airline over unpaid N11.2bn debt

Federal high court sitting in Lagos, Southwest Nigeria, has adjourned till 10 February a N11.2 billion and $942,147.02 suit filed against Arik Airline by Federal Airports Authority of Nigeria (FAAN).According to the statement of claim filed on behalf of FAAN before the court by Ridwan Bello of Multi sector Law group, it was alleged that ArikAirline arrears for services and use of facilities atthe Murtala Muhammed International Airport, Lagos, Nnamdi Azikwe International Airport Abuja, Mallam Aminu Kano International Airport Kano, and Port Harcourt International Airport between 1st of August, 20008 and 18th August, 2015 have accumulated to N11,215,279,204. And$942,147.02.The airline was alleged to have denied FAAN the use of the revenue which the statute mandates FAAN to collect as a source of funds for its day to day running and upkeep of its operations.The break down of the Arik Airline’s indebtednessto FAAN is as follows: FAAN Direct Billing- N3,116,579,449.75,Outstanding under the era of Maevis Limited- N3,036,785,375.98 and N1,998,004,109.44 being unpaid landing fees and other fees for domestic operation. IATA Direct Billion- N1,809,998,414.07 and N89,593,597.50. Consequently, FAAN is now urging the court to compel the airline to pay its debts or else it will apply to the court for order of possession and sale of the Airline’s fleets of Aircraft in liquidationof the airline indebtedness.FAAN is also demanding for the sum of N200 million as legal fees for prosecuting this debt recovery suit.

Source: Pm news