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Agony, as unions ground Arik over N12.5bn debt
*Overland owes N7B-Unions
*Airline suspends operations
*Losses put at over N300M
For six hours, aviation unions under the aegis of Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) and the National Union of Air Transport Employees (NUATE) ensured that the plan to ground Arik Air over alleged N12.5b debt owed the Federal Airports Authority of Nigeria (FAAN) was effective. The unions’ action lasted from 6.30am to noon.
The airline’s losses are yet to be computed, but experts put the loss conservatively in the region of over N300million.
The unions who were still barricading Arik as at the time of filing this report have vowed that they will not be leaving the airline’s offices until the airline settles its debts, an indication of a lingering face-off between the airline and the unions.
President of ATsSSAN, Benjamin Okewu said, “We will be continuing this picketing tomorrow until Arik reconciles and starts paying off their debt. There are other debtors but they have all been reconciling and paying but Arik is doing neither instead heading to court.
“Overland owes N7b, others too are owing FAAN but have reached a middle point.”
While the action lasted, thousands of passengers already booked on the carrier’s over 125 daily flights were left stranded across the country. The carrier controls about 30 per cent of traffic.
The pain of inability to meet appointments already scheduled for today was visibly written on their faces. They were dejected.
The unions, as early as 6.30 am, sang solidarity songs and carried placards which read, “Arik pay your debt, enough is enough”, “Arik Air Must pay its debt to FAAN for peace to reign”, “Arik Pay Your B12.5billion Debt! “FAAN can no longer pay salaries, pension, staff claims due to your debt”, “Debtors pay all you owe FAAN now!!! Arik if you can’t pay don’t fly!!!, among others
The union members stated that they decided to shut down the airline after negotiation between the airline and FAAN failed. The negotiations, they said had been ongoing over the years.
Scores of passengers, who had planned to travel with Arik Air, were seen stranded and moving helter skelter to catch up with other airlines in order not to miss their appointments.
Workers of the airline were prevented by the unions from gaining access to their duty posts thereby disrupting the day’s operations.
But spokesman for Arik, Ola Banji, said the claims by the unions could not be substantiated.
“The action by the workers’ union is connected with the long-standing and unsubstantiated claim by the Federal Airports Authority of Nigeria (FAAN) of spurious indebtedness of the airline to the agency which is now before a Federal High Court in Lagos at the instance of FAAN.”
“For several months, the management of Arik Air and FAAN have been meeting to reconcile payment accounts between the two institutions. The reconciliation process is still ongoing until the latest actions by the union.
He said ‘this is not the first time that FAAN workers’ union will be taking the laws into their hands by disrupting operations of Arik Air’.
According to him, ‘The current situation is deeply out of control of Arik Air and the management of the airline has been compelled to suspend all domestic operations for today. This will remain in force until such a time the unfortunate situation is resolved.
“Arik Air sincerely apologise for the inconveniences the FAAN workers’ union action may have caused its esteemed passengers. We live to serve the needs of the people of the great nation Nigeria.
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“We look forward to working collaboratively with FAAN and other aviation agencies to resolve the impasse and return to our core purpose of providing essential world class services to the people of Nigeria”, he said.
Okewu and Secretary-General of NUATE, Olayinka Abioye, explained that yesterday’s action was just withdrawal of services being rendered by FAAN from the airline, adding that rather than the airline to reconcile its accounts, it resorted to court action.
They said the action will continue until the airline pays up.
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