Adigun Moves to Halt N1 Billion Debt in Airline Shutdown
Max Air’s estimated N1 billion debt to SAHCO and NAHCO triggered an airline shutdown yesterday after the Aviation Ground Handlers Association of Nigeria suspended services to the carrier. The move effectively grounded the airline’s domestic operations nationwide and put the burden squarely on passengers trying to move within Nigeria.
Mr Olaniyi Adigun, chairman of AGHAN, said the suspension came after Max Air refused to engage on reconciliation and settlement. “We took decisive action on Max Air today (yesterday) because the airline refused to negotiate with us.”
Adigun on Max Air’s refusal
Max Air’s grounding followed months of disagreements between ground handling companies and several airlines over unpaid service charges. Adigun said the association had tried repeatedly to resolve the matter, but Max Air did not respond positively, while other debtor-airlines were still in talks and reconciling their accounts.
“While the other debtor-airlines are negotiating with us, Max Air has blatantly refused to negotiate with the handling companies.” That refusal moved the dispute from negotiation to enforcement, with AGHAN describing the step as its first major move against defaulting airlines.
N1 billion and a warning
N1 billion is the estimated debt exposure Max Air owes to Skyway Aviation Handling Company Plc and Nigerian Aviation Handling Company Plc. Adigun said the association could no longer carry the financial burden created by prolonged non-payment for services rendered, and warned that some other debtor-airlines were close to signing Memoranda of Understanding on repayment.
“Some of the other debtor-airlines are already on the verge of signing Memoranda of Understanding (MoUs) with our members on debt repayment.” He also said the action should signal to other airlines that ground handling companies can no longer continue to provide services without payment.
Hajj flights stay outside the ban
Max Air’s hajj operations were exempted from the sanctions because the handling charges for those pilgrimage flights are paid directly by the National Hajj Commission of Nigeria. That leaves the carrier’s domestic network shut down even as one part of its flying schedule continues to move through a separate payment channel.
AGHAN had earlier issued deadlines warning that unpaid obligations could lead to the withdrawal of services. It initially planned to start enforcement actions on May 1, 2026, then suspended that move for Workers’ Day celebrations and industrial harmony before issuing a fresh three-day ultimatum to the affected airlines.
