The Aviation Ground Handlers Association of Nigeria (AGHAN) has directed its members to withdraw services from XEJet Airlines over an outstanding handling debt of about N300 million.
AGHAN said the decision followed the airline’s alleged failure to honour payment arrangements reached with ground handling companies. The association said its members had made repeated efforts to recover the outstanding payments before taking the latest step.
The directive could affect XEJet’s operations, with the airline reportedly making alternative arrangements for some passenger check-in luggage. The development highlights the wider pressure facing airlines and aviation service providers as companies manage rising operating costs and outstanding financial obligations.
AGHAN Explains XEJet Handling Debt Dispute
In a joint statement signed by AGHAN President Olaniyi Adigun and AGHAN Vice President Bashir Ahmed, the association said several indigenous airlines had complied with payment arrangements agreed with ground handling companies.
However, it said XEJet had not followed through on its agreed arrangements. AGHAN described the airline as having remained “recalcitrant” despite efforts by its members to resolve the issue.
The association said its members could not continue providing services without receiving payment for work already completed. It added that ground handlers also need revenue to maintain equipment and support their employees.
“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 said.
“Our members have made every effort to ensure that the airline complied, but its management has been recalcitrant.”
AGHAN said the outstanding handling debt currently stood at about N300 million. It added that the withdrawal directive had been fully implemented by its members.
The association also questioned why some organisations would delay payments for services already provided, noting that the situation affects the ability of ground handling companies to operate effectively.
“We can’t continue to operate like this,” AGHAN said. “We need to increase our equipment, while also boost the welfare of our staff, but we can’t do this when some organisations are not willing to pay for services rendered to them.”
Ground Handlers Extend Warning to Airlines
The XEJet dispute comes against the background of a wider attempt by AGHAN to address outstanding debts owed by domestic airlines.
The association had earlier issued a seven-day ultimatum to airlines with unpaid ground handling bills. Under the arrangement, affected airlines were expected to settle at least 75 per cent of their outstanding obligations or face the withdrawal of handling services.
That earlier directive followed an executive meeting involving AGHAN members. The meeting focused on growing airline indebtedness and the effect of delayed payments on ground handling companies.
However, the association later suspended the threat after some affected airlines presented payment plans and began taking steps to settle their obligations.
XEJet was reportedly among the airlines that did not meet the agreed arrangements. Consequently, AGHAN directed its members to withdraw services from the carrier.
The association said the action would remain in place until the airline settles its outstanding obligations.
AGHAN also warned that other airlines could face similar action if they fail to honour payment arrangements reached with ground handling companies.
Aviation Businesses Face Shared Financial Pressure
Meanwhile, AGHAN acknowledged the financial and operational difficulties affecting businesses across Nigeria’s aviation industry.
The association, however, said ground handling companies were facing many of the same pressures as airlines. Delayed payments, it said, make it harder for handlers to maintain equipment, improve services and meet staff-related obligations.
The dispute therefore puts renewed attention on the financial relationship between airlines and the companies that support their daily operations.
For XEJet, the immediate issue remains its reported handling debt and the resulting withdrawal of services by AGHAN members. Any prolonged disruption could place additional pressure on the airline’s ground operations.
AGHAN maintained that the latest action was intended to recover outstanding payments and encourage compliance with agreed payment plans.
The association said its members remained willing to provide services when airlines meet their financial obligations.
