Ground handlers freeze XEJet operations over N300m unpaid debt, warn other carriers

Ground handling services for indigenous carrier XEJet Airlines came to a sudden halt on Monday after the Aviation Ground Handlers Association of Nigeria (AGHAN) directed its members to immediately withdraw all ramp support and handling operations over an outstanding debt of about N300 million.

The sudden blackout has thrown XEJet’s daily operations into disarray, leaving passenger baggage handling and aircraft ramp services stranded.

To cushion the immediate impact, the airline scrambled emergency measures, including diverting some of its passengers’ check-in luggage to another domestic operator for processing.

In a joint statement, AGHAN President Olaniyi Adigun and Vice President Bashir Ahmed confirmed that the association resolved to enforce a total service withdrawal after XEJet repeatedly reneged on mutually agreed debt repayment timelines, despite multiple extensions and recovery windows.

The leadership noted that while other indebted domestic airlines complied by submitting workable liquidation schedules and initiating payments, XEJet remained recalcitrant and consistently refused to engage handling companies in constructive recovery talks.

“We decided to direct our members to withdraw services from XEJet Airlines because it has, over time, failed to meet its payment plans. Our members have made every effort to ensure that the airline complied, but its management has been recalcitrant,” the statement read in part.

AGHAN strongly condemned the culture of deliberate default, emphasising that non-payment directly undermines the commercial viability of ground handling firms, which are already grappling with harsh macroeconomic headwinds, soaring equipment maintenance costs, and rising staff welfare obligations.

“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,” AGHAN stated.

“As it stands, the company owes our members about N300 million. Hence, we have instructed our members to withdraw services from the airline, and this has been complied with 100 per cent.”

The action follows a previous seven-day ultimatum issued by AGHAN to several indebted domestic carriers, demanding the liquidation of at least 75 per cent of their outstanding liabilities or risk a total shutdown of ground services.

While that initial ultimatum was temporarily suspended after an executive meeting where several carriers presented acceptable repayment structures, XEJet failed to adhere to the agreed terms, forcing the association’s hand.

While acknowledging the economic headwinds across the aviation value chain, AGHAN stressed that ground handlers can no longer subsidise defaulting airlines at the expense of their own survival.

The association issued a firm warning to other domestic operators, maintaining that members will not hesitate to enforce a similar 100 per cent service blackout on any carrier that defaults on its contractual obligations.

Wole Shadare