The Aviation Ground Handlers Association of Nigeria (AGHAN) has directed its members to suspend ground handling services to XEJET Airline over an outstanding debt estimated at N300 million.
The association announced the directive on Monday, accusing the airline of repeatedly failing to honour repayment arrangements reached with ground handling companies despite several efforts to recover the accumulated debt.
The suspension has reportedly begun to affect the airline’s operations, with sources indicating that some passengers’ check-in luggage was transferred to another domestic carrier following the withdrawal of ground handling support.
In a joint statement signed by AGHAN President, Olaniyi Adigun, and Vice-President, Bashir Ahmed, the association said several indigenous airlines had responded to similar debt concerns by complying with agreed repayment schedules.
According to AGHAN, XEJET failed to honour its commitments despite repeated engagements and opportunities to resolve the matter.
The association said the decision to withdraw its members’ services was necessary to protect the operational and financial stability of ground handling companies, which are also contending with rising costs of equipment, manpower and other operational requirements.
AGHAN said XEJET’s outstanding obligations had risen to about N300 million, prompting its members to fully implement the directive to discontinue services until the debt is addressed.
The association also warned that other airlines indebted to its members could face similar sanctions if they failed to comply with agreed payment arrangements for services already rendered.
While acknowledging the difficult economic conditions affecting airlines and other businesses in the aviation sector, AGHAN said ground handlers 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 latest action 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 pay at least 75 per cent of their outstanding obligations or risk having their ground handling services suspended.
The ultimatum was issued after an executive meeting between AGHAN and its members to address the rising indebtedness of airlines and its impact on ground handling companies.
The proposed industrial action was later suspended after some of the affected airlines submitted payment plans and began taking steps to clear their outstanding debts.
However, AGHAN said XEJET failed to meet the terms of its repayment arrangement, resulting in the decision to withdraw ground handling services.
The association said its members would continue to withhold services from XEJET until the airline settles its outstanding obligations or reaches a satisfactory agreement with the affected ground handling companies.
