Home Aviation News Max Air Grounded as AGHAN Suspends Handling Over ₦1bn Debt

Max Air Grounded as AGHAN Suspends Handling Over ₦1bn Debt

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The Aviation Ground Handlers Association of Nigeria (AGHAN) has suspended ground handling services to Max Air over an alleged debt estimated at nearly ₦1 billion, a move that has effectively halted the airline’s domestic operations across Nigeria.

The enforcement action took effect on Thursday and marks the first major sanction imposed by the association against an airline accused of failing to meet its financial obligations to ground handling companies.

Speaking on the development, AGHAN Chairman, Mr. Olaniyi Adigun, said the decision became necessary after Max Air allegedly refused to engage in discussions aimed at reconciling and settling its outstanding indebtedness.

According to him, several other airlines with outstanding debts are currently negotiating repayment arrangements with handling companies. However, he said Max Air has failed to respond positively despite repeated efforts to resolve the issue.

Adigun explained that member companies could no longer sustain the financial pressure resulting from prolonged non-payment for services already rendered.

He said: “We took the decisive action on Max Air today (Thursday) because the airline refused to negotiate with us. While the other debtor airlines are negotiating with us, Max Air has blatantly refused to negotiate with the handling companies.

“Some of the other debtor airlines are already on the verge of signing Memoranda of Understanding (MoUs) with our members on debt repayment. This action should serve as a signal to other airlines that ground handling companies can no longer continue to provide services without payment.”

The AGHAN chairman stressed that the association’s action was not intended to disrupt the aviation industry but to protect the sustainability of businesses providing critical support services to airlines.

Max Air Faces Ground Handling Suspension Over Debt Dispute

Despite the sanctions, Adigun clarified that Max Air’s ongoing hajj operations would continue without interruption. He noted that payments for handling services related to pilgrimage flights are made directly by the National Hajj Commission of Nigeria (NAHCON).

This exemption means pilgrims travelling on Max Air-operated hajj flights are unlikely to experience disruptions arising from the dispute between the airline and ground handling companies.

Investigations indicate that Max Air’s debt exposure to the country’s two major ground handling firms, Skyway Aviation Handling Company Plc (SAHCO) and Nigerian Aviation Handling Company Plc (NAHCO), is estimated at approximately ₦1 billion.

The dispute follows months of tension between ground handling companies and several airlines over the accumulation of unpaid service charges. AGHAN had repeatedly warned that continued delays in settling debts could lead to the withdrawal of services.

Earlier in the year, the association announced plans to commence enforcement actions on May 1, 2026. However, the move was suspended to coincide with Workers’ Day celebrations and to maintain industrial harmony within the aviation sector.

Subsequently, AGHAN issued a fresh three-day ultimatum to affected airlines, demanding immediate account reconciliation and clear repayment plans.

The association has consistently argued that delayed payments are placing severe operational and financial pressure on its members. Ground handlers provide essential aviation support services, including passenger facilitation, baggage handling, aircraft cleaning, cargo processing, ramp operations and aircraft turnaround support.

Industry stakeholders have warned that prolonged non-payment for such services could threaten operational efficiency and affect service delivery across the aviation value chain.

AGHAN maintains that sustainable ground handling operations depend on prompt settlement of obligations by airline operators. The association believes the action against Max Air should serve as a warning to other indebted carriers.

Meanwhile, efforts to obtain an official response from Max Air were unsuccessful as of the time this report was filed. The airline had not publicly commented on the allegations or outlined any plans to resolve the dispute with the handling companies.

As the situation unfolds, aviation stakeholders will be watching closely to see whether negotiations resume and how quickly Max Air can restore its domestic operations.

 

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