FAAN, Arik Air face-off: Arik Air paid FAAN N4bn in 2014

Arik

Contrary to the claim by the Federal Airport Authority of Nigeria, FAAN, that Arik Air has not been paying its bills and honouring its financial obligations to the aviation agencies, Vanguard investigations revealed that Arik Air paid FAAN about N4 billion in 2014.

An impeccable source told Vanguard that “FAAN got N4bn revenue from Arik Air last year and the airline has been meeting its obligation to the agency through the pay-as-you-go payment system introduced about two years ago to curb incessant account reconciliation disagreement between aviation agencies and airlines”.

According to the source, “Payments made by Arik Air to FAAN in 2014 amounting to N4bn are as follows:

“In January, 2014, Arik paid N335,562,212.50; paid N318,575,002.50 in Feb; N327,359,180 in March; N370,417,622.50 in April; N349,471,655 in June; N315,530,737.50 in July; N344,486,305 in Sept; and N447,232,602.50 in December.This is contrary to the claim that Arik has not been paying its bills.“

This figure include parking and landing fees, rent, passenger Service charge (PSC), fuel surcharge.

Last Thursday, Arik Air alleged that officials of FAAN disrupted its flight operations at the Nnamdi Azikiwe International Airport, Abuja. The airline said FAAN denied the airline’s staff access to their duty post making it impossible to process passengers for departures out of Abuja.

According to Mr Adebanji Ola, PR and Communication Manager, Arik Air, “The latest action may not be unconnected with allegation of debt FAAN claimed Arik Air owed. The airline has described the debt figure by the agency as fictitious and malicious.”

He added that “Arik Air insists that it does not owe FAAN any money since the agency’s charges are paid in advance. This has been the practice for over two years when all the aviation agencies introduced pay-as-you-go for their services. The bogus debt claim by FAAN is therefore unacceptable to Arik Air.”

Adebanji revealed that the “Minister of Aviation, Chief Osita Chidoka had earlier stepped into the lingering debt issue between FAAN and Arik Air and had directed that a firm of auditors be engaged to reconcile the books. This process has not been concluded before the latest action by Reacting, FAAN official, Mrs Henrientta Yakubu told Vanguard that the disruption of the operation of the airline was carried out by FAAN workers Union over the N1billion debt owed by the airline.

Yakubu said the Union and Arik reached an agreement after some hours and the airline later commenced full operation.

 

– See more at: http://www.vanguardngr.com/2015/04/faan-arik-air-face-off-arik-air-paid-faan-n4bn-in-2014/#sthash.dFVfQWDi.dpuf

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