Friday, April 22, 2016

FG GIVES ARIK AIR TWO WEEKS ULTIMATUM TO SETTLE DEBT ISSUES




Managing Director of the airline, Chris Ndulue, who disclosed this at a press briefing in Lagos, refuted FAAN’s claim that Arik Air is owing the agency N12.5 billion, the alleged indebtedness workers in the aviation industry used as an excuse to shut down the airline’s operation on Wednesday.


He said: “While I will go beyond my limits to ensure that domestic airlines are encouraged to grow and promoted to compete favourably with their foreign counterparts, I will not subvert applicable rules and regulations in favour of any.” The minister further said that aviation is the only industry that is internationally regulated and that Nigerian operators must conform to international best practices, saying that Arik Air and other key players need to be supported for wider international visibility.
According to the minister, the issue of alleged indebtedness by Arik Air that has led to disagreements with some trade unions within the regulatory agencies was highly regrettable, adding that while government will not condone lawlessness within the industry, all airline operators must conform to industry rules and regulations.

At the briefing where top management team of the airline, including its Chairman, Sir Joseph Arumemi-Ikhide, was present, Ndulue, who expressed surprise at FAAN’s claim of indebtedness, showed a letter dated February this year from the agency to Arik where the regulator acknowledged that the airline had paid N11.4 billion.
Sirika, while maintaining that the well-being of an airline is measured by its ability to pay for services rendered to it, said the goal of the present government is to develop an aviation industry that is founded on the principles of safety and security of not only the regulators and airline operators, but also passengers and their luggage, while also putting in place policies that would encourage the growth of domestic airlines.

Workers in the aviation industry, under the umbrella of the National Union of Employees (NUATE) and Air Transport Service Senior Staff Association of Nigeria (ATSSAN), had on Wednesday grounded operations at the Lagos headquarters of Arik Air over a N12.5 billion debt allegedly owed the FAAN.

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