Ground Handlers Suspend Services to XEJET Airline Over N300m Debt

The Aviation Ground Handlers Association of Nigeria has directed its members to withdraw ground handling services from XEJET Airline over an outstanding debt estimated at N300 million.

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

The development has begun to affect XEJET’s operations. Sources indicate that some of the airline’s passengers’ check-in luggage was transferred to another domestic carrier following the withdrawal 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 had responded to similar debt concerns by adhering to agreed repayment schedules. XEJET, however, failed to follow through on its commitments despite repeated engagements and opportunities to resolve the matter.

AGHAN said the decision to suspend services was necessary to protect the operations and financial stability of its members, who also face rising costs tied to equipment, manpower and other operational requirements.

The association disclosed that XEJET’s outstanding obligations had reached approximately N300 million, prompting members to fully implement the directive until the debt is addressed.

The handlers also warned that other airlines indebted to their members could face similar sanctions if they fail to comply with agreed payment arrangements for services already rendered.

AGHAN acknowledged the difficult economic environment affecting airlines and other businesses across the aviation industry, but said ground handling companies were equally operating under significant financial pressure.

“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 statement read. “Our members have made every effort to ensure that the airline complied, but its management has been recalcitrant.

“We cannot 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 levels. We need to increase our equipment while also boosting the welfare of our staff, but we cannot 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 with 100 per cent.”

The withdrawal followed an earlier seven-day ultimatum issued by the handlers to domestic airlines with outstanding obligations. Under that directive, affected airlines were required to pay at least 75 per cent of their outstanding debts or risk suspension of ground handling services.

The ultimatum came after an executive meeting between AGHAN and its members to address the growing indebtedness of airlines and its impact on ground handling companies.

The proposed industrial action was later suspended after some affected airlines submitted payment plans and began taking steps towards clearing their obligations. XEJET, however, failed to meet the terms of its arrangement, leading to the latest decision.

The association maintained that its members would continue to withhold services from XEJET until the airline settles its outstanding obligations or reaches a satisfactory arrangement with the affected ground handling companies.

Efforts to obtain a response from XEJET were unsuccessful. Calls and text messages sent to the airline’s spokesperson, Juliet Atikpekpe, were neither picked up nor responded to.