Ground handling operations for indigenous carrier XEJet Airlines were brought to a complete halt on Monday as the Aviation Ground Handlers Association of Nigeria (AGHAN) directed its members to immediately withdraw all ground handling services from the airline over an unpaid debt burden of approximately N300 million.
The sudden service withdrawal has triggered operational disruptions for XEJet, leaving passenger luggage handling and ramp support stranded.
To mitigate the immediate fallout, the airline was forced to make emergency arrangements, including diverting some of its passengers’ check-in luggage to another domestic carrier for processing.
The decisive action was announced in a joint statement issued by Olaniyi Adigun, AGHAN President, and Bashir Ahmed, Vice President.
According to the leadership, the association resolved to enforce a full service blackout after XEJet repeatedly failed to honor mutually agreed debt repayment schedules, despite multiple reminders and recovery windows extended by affected handling firms.
AGHAN revealed that while several other domestic airlines previously cited for indebtedness complied by presenting workable repayment timelines and commencing settlements, XEJet remained ‘recalcitrant’ and continuously refused to engage handling companies in constructive debt recovery negotiations.
‘We decided to direct our members to withdraw services from XEJet Airlines because it has, over time, failed to meet its payment plans. Our members have made every effort to ensure that the airline complied, but its management has been recalcitrant,’ the statement read in part.
Condemning the pattern of deliberate default, the association stressed that non-payment directly threatens the operational viability of ground handling companies, which are equally exposed to harsh macroeconomic headwinds, rising equipment costs, and staff welfare commitments.
‘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,’ AGHAN declared.
‘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.’
The immediate shutdown follows an earlier seven-day ultimatum issued by AGHAN to several indebted domestic carriers. During that initial directive, the association instructed defaulting airlines to liquidate at least 75 percent of their outstanding obligations or face a total freeze on handling services.
Although that ultimatum was temporarily suspended after an executive meeting where several airlines submitted acceptable liquidation plans, XEJet failed to comply with the agreed terms, leaving the association with no choice but to enforce a full withdrawal of services.
Expressing regret over the broader economic and operational challenges plaguing operators across the aviation value chain, AGHAN emphasised that handling companies can no longer subsidise defaulting carriers at the expense of their own survival.
The association issued a stern warning to other domestic carriers, maintaining that its members will not hesitate to execute a similar 100 percent service withdrawal against any airline that fails to honour its contractual payment commitments for services rendered.