Ground handlers withdraw services from XEJet over N300m debt - The Guardian Nigeria News

The Aviation Ground Handlers Association of Nigeria (AGHAN) on Monday directed its members to withdraw ground handling services from XEJet Airlines over outstanding debts of about N300 million.

The association said the decision followed the airline’s alleged failure to honour agreed payment plans despite repeated efforts by its members to recover the outstanding debts.

The withdrawal of handling service may have disrupted the operations of XEJet has The Guardian gathered that it has diverted some of the check-in luggage of its passengers on another domestic operator.

In a joint statement signed by AGHAN President and Vice President, Olaniyi Adigun Bashir Ahmed, respectively, association said while several indigenous airlines had complied with payment arrangements reached with ground handling companies, XEJet had remained “recalcitrant.”

AGHAN threatened that its members would continue to withhold services from the airline until its outstanding obligations were settled, adding that XEJet’s management had also allegedly failed to engage its members in negotiations over the debts.

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 boost 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 N300 million. Hence, we have instructed our members to withdraw services from the airline and this has been complied 100 per cent.”

The handlers warned that they would take similar action against any other airline that failed to honour agreed payment plans for services rendered.

However, AGHAN regretted the operational and financial challenges confronting businesses in the aviation sector, but said ground handling companies were also exposed to the same economic pressures.

The latest development followed an earlier seven-day ultimatum issued by the association to some domestic airlines with outstanding debts.

The handlers had earlier directed affected airlines to settle at least 75 per cent of their outstanding obligations or risk suspension of ground handling services.

According to the association, the ultimatum followed an executive meeting with its members to address the growing indebtedness of airlines to ground handling companies.

The threat was subsequently suspended after some of the affected airlines presented payment plans and commenced steps towards settling their obligations.

XEJet, however, was said to have failed to comply with the agreed arrangements, leading to the latest directive by AGHAN for its members to withdraw services from the airline.