The Aviation Ground Handlers Association of Nigeria (AGHAN) has directed its members to suspend services to XEJET Airline over an outstanding debt estimated at N300 million.

The association announced the decision on Monday, accusing the airline of repeatedly failing to honour payment arrangements reached with ground handling companies despite several attempts to recover the debt.

The withdrawal of services has reportedly begun to affect XEJET’s operations, with sources indicating that some passengers’ checked luggage had to be transferred to another domestic carrier following the suspension 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 facing similar debt concerns had complied with agreed repayment schedules.

XEJET, however, had failed to meet its commitments despite repeated engagements and opportunities to resolve the matter, according to the association.

AGHAN Cites Financial Pressure on Ground Handlers

AGHAN said the suspension became necessary to protect the financial stability and operations of its members, who are also dealing with rising costs associated with equipment, manpower and other operational requirements.

The association put XEJET’s outstanding obligations to its members at approximately N300 million and said the directive to withdraw services had been fully implemented.

“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,” the association said.

AGHAN added that its members had made several attempts to secure compliance from the airline without success.

The association argued that unpaid bills were limiting the ability of ground handling companies to invest in equipment and improve employee welfare.

“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,” AGHAN said.

Other Indebted Airlines Face Similar Action

The association also warned that other airlines owing its members could face similar sanctions if they fail to comply with agreed repayment arrangements for services already provided.

While acknowledging the challenging economic conditions affecting airlines and other businesses in Nigeria’s aviation industry, AGHAN said ground handling companies were experiencing similar financial pressures.

The latest action follows an earlier seven-day ultimatum issued by the association to domestic airlines with outstanding obligations to ground handling companies.

Under that directive, affected airlines were required to pay at least 75 per cent of their outstanding debts or risk having ground handling services suspended.

The ultimatum followed an executive meeting between AGHAN and its members over concerns about growing airline indebtedness and its impact on ground handling operations.

The planned withdrawal of services was subsequently suspended after some affected airlines submitted repayment plans and began taking steps to settle their obligations.

According to AGHAN, XEJET failed to comply with the terms of its arrangement, prompting the association to proceed with the suspension.

AGHAN maintained that its members would continue withholding services from the airline until the outstanding obligations are settled or a satisfactory repayment arrangement is reached with the affected ground handling companies.

As of the report, XEJET had not publicly responded to the allegations. Attempts to obtain comments from the airline’s spokesperson, Juliet Atikpekpe, through calls and text messages were unsuccessful.