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N300M DEBT: AVIATION HANDLERS DOWN TOOLS AGAINST XEJET

CHUKS OKOH

Members of the Aviation Ground Handlers Association of Nigeria (AGHAN) have been instructed to halt all operations for XEJet Airlines due to unpaid debts totaling roughly N300 million.

​According to the association, the action was taken after the airline repeatedly ignored agreed-upon repayment schedules despite numerous recovery attempts.

​The suspension of ground support appears to have severely impacted XEJet’s operations, with reports indicating that the carrier was forced to transfer passenger check-in baggage to another local airline.

​In a joint release, AGHAN President Olaniyi Adigun and Vice President Bashir Ahmed noted that while other local carriers adhered to their restructured payment terms, XEJet refused to cooperate or engage in meaningful negotiations regarding its arrears.

​AGHAN emphasized that the service boycott will remain in effect until the airline clears its financial obligations.
​The statement noted: “We instructed our members to cut off services to XEJet Airlines because the carrier has consistently reneged on its payment schedules. Despite continuous efforts by our members to resolve the issue, the airline’s management has remained uncooperative.

​“This business model is unsustainable. Why do certain companies refuse to settle bills for services already delivered? This deliberate neglect harms our members across all operational levels. We require funds to upgrade equipment and improve staff welfare, which is impossible when clients refuse to pay.

​“Currently, the airline owes our members approximately N300 million. As a result, we issued a total service shutdown directive, which has been fully implemented.”

​The association cautioned that any other airline failing to honor its payment agreements would face identical measures.
​While acknowledging the severe economic and operational hurdles facing the broader aviation industry, AGHAN stressed that ground handling firms are burdened by the exact same economic pressures.

​This action stems from a previous seven-day notice AGHAN issued to several debtor domestic airlines, requiring them to clear a minimum of 75 percent of their arrears or face service suspensions. That notice followed an executive session aimed at tackling the rising debt owed by airlines.
​Although that initial threat was paused after most carriers submitted viable repayment proposals and began making payments, XEJet failed to follow suit, triggering the full withdrawal of ground support.

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