XEJet Hit as Ground Handlers Suspend Services Over N300m Debt

XEJet Airlines has been cut off from ground handling services by members of the Aviation Ground Handlers Association of Nigeria over an alleged outstanding debt of about N300 million.

The association said the decision was taken after the airline failed to fulfil payment commitments made to companies providing services to it.

AGHAN President, Olaniyi Adigun, and Vice President, Bashir Ahmed, disclosed the development in a joint statement on Monday.

According to the association, ground handling companies had previously tried to resolve the dispute by engaging the airline and accepting payment arrangements proposed by its management.

It said the efforts did not produce the expected result, prompting the withdrawal of services.

“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,” the statement said.

Adigun said the amount owed by XEJet had accumulated to approximately N300 million.

“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,” he said.

The dispute has affected the airline’s handling arrangements at the airport, with reports indicating that some passengers’ luggage had to be transferred to another airline as an alternative arrangement.

Ground handling companies provide airlines with a range of essential airport services, including baggage handling, passenger processing and ramp support.

AGHAN said the failure of airlines to settle bills for services already provided was placing additional financial pressure on ground handling companies and threatening their ability to sustain operations.

“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,” the association said.

The latest action followed an earlier attempt by AGHAN to compel indebted domestic airlines to address their outstanding bills.

The association had given affected carriers a seven-day window to settle at least 75 per cent of their debts or face withdrawal of ground handling support.

According to AGHAN, the planned action was suspended after some airlines submitted payment proposals and began implementing them.

The association said XEJet, however, failed to meet the terms agreed with its members, leading to the latest sanctions.

The development adds to the financial pressures confronting operators within Nigeria’s aviation industry, where airlines and service providers depend on one another for the uninterrupted movement of passengers and aircraft.

XEJet had not, at the time of the reports, publicly responded to the allegation of indebtedness or the withdrawal of ground handling services.