23-Dec-2010 12:38 PM

FAAN grounds Associated Air and Arik Air for outstanding debt

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.

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