The Aviation Ground Handlers Association of Nigeria has directed its members to suspend ground handling services to XEJET Airline over an outstanding debt estimated at N300m.
The association issued the directive on Monday, accusing the airline of repeatedly failing to honour payment agreements reached with ground handling companies despite several efforts to recover the accumulated debt.
The suspension has reportedly started affecting XEJET’s operations, with sources saying some passengers’ checked-in luggage was transferred to another domestic airline following the withdrawal of ground handling services.
In a joint statement signed by AGHAN President Olaniyi Adigun and Vice President Bashir Ahmed, the association said several indigenous airlines had addressed similar debt concerns by complying with agreed repayment schedules.
According to the association, XEJET had failed to honour its commitments despite repeated engagements and several opportunities to resolve the outstanding debt.
AGHAN said the suspension of services was necessary to protect the operational and financial stability of its members, who are also contending with rising costs of equipment, manpower and other operational requirements.
The association said XEJET’s outstanding obligations had risen to about N300m, prompting its members to fully implement the directive to suspend services until the debt is settled.
The handlers also warned that other airlines indebted to their members could face similar sanctions if they fail to honour agreed payment arrangements for services already rendered.
While acknowledging the challenging economic conditions affecting airlines and other businesses across the aviation industry, AGHAN said ground handling companies were also operating under significant financial pressure.
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 services followed an earlier seven-day ultimatum issued by the handlers to domestic airlines with outstanding debts to ground handling companies.
Under the directive, affected airlines were required to settle at least 75 per cent of their outstanding obligations or risk having their ground handling services suspended.
The ultimatum followed an executive meeting between AGHAN and its members to address the growing indebtedness of airlines and its impact on the operations of ground handling companies.
The planned industrial action was later suspended after some affected airlines submitted payment plans and began taking steps to clear their outstanding debts.
XEJET, however, reportedly failed to meet the terms of its repayment arrangement, prompting AGHAN to withdraw ground handling services from the airline.
The association said its members would continue to withhold ground handling services from XEJET until the airline settles its outstanding obligations or reaches an acceptable repayment agreement with the affected companies.
