Nigeria's domestic carriers indebted to the Federal Airports Authority of Nigeria with the amount of approximately USD13.1 million (NGN2 billion), commenced settling their debts. FAAN issued an ultimatum on 17-Dec-2010 to pay the debts accumulated on passenger service, aircraft landing and parking charges or risk being grounded on 20-Dec-2010 (All Africa/The Punch, 22-Dec-2010). Arik Air has paid USD327,011 (NGN50 million) of its debt, and intends to pay another NGN50 million at a later date. Aero Contractors Airlines also reportedly paid USD209,287 (NGN32 million) as at 21-Dec-2010. Other carriers that had effected payment include IRS Airlines with NGN6.5 million; Dana with NGN40.4 million; and Associated Airlines with USD4,905 (NGN750,000). Arik Air's operations were grounded temporarily and Associated Air's indefinitely on 21-Dec-2010 due to its outstanding debt payment.
FAAN grounds Associated Air and Arik Air for outstanding debt
23-Dec-2010 12:38 PM