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Flight Disruptions Loom As Ground Handlers Threaten To Suspend Services Over Airline Debts

Yusuf Babalola by Yusuf Babalola
2 hours ago
in Business
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Some Nigerian air travellers could face flight cancellations, delays and possible grounding of operations as ground handling companies have threatened to withdraw services from two major domestic airlines over outstanding debts running into significant sums.

The Association of Ground Handling Companies of Nigeria (AGHAN) has given the affected airlines a seven-day ultimatum to settle 75 per cent of their outstanding indebtedness or risk suspension of ground handling services, a move that could immediately disrupt passenger and flight operations across affected airports.

The statement signed by AGHAN Chairman, Olaniyi Adigun, and Vice- Chairman, Ahmed Bashir Gulmah, said the two unnamed airlines reportedly account for more than 70 per cent of the total indebtedness owed to AGHAN member companies.

LEADERSHIP reports that the threat has raised fresh concerns in the aviation industry, coming at a time when airlines and passengers are already grappling with rising operational costs and frequent flight delays and disruptions.

AGHAN, in the statement issued after its executive meeting held on Friday, September 4, 2026, said its members had been directed to issue seven-day notices of suspension to the two airlines over what it described as “significant and prolonged indebtedness.”

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The association said the affected airlines must pay 75 per cent of their outstanding debts within seven days, while the remaining 25 per cent would be settled under a mutually agreed structured repayment plan to be completed within 90 days.

“The Association has, accordingly, directed its members to issue seven-day notices of suspension of ground handling services to two major domestic airlines whose outstanding obligations collectively account for over 70 per cent of the total indebtedness owed to AGHAN member companies,” the statement said.

The threatened withdrawal of services could have serious consequences for passengers, as ground handlers provide critical services required for the safe and efficient turnaround of aircraft, including passenger and baggage handling, ramp operations and other essential airport support services.

Failure by the affected airlines to meet the payment conditions before the expiration of the ultimatum could therefore trigger disruptions to scheduled flights, leaving passengers facing delays, cancellations and possible uncertainty over their travel plans.

AGHAN said the persistent failure of some airlines to meet their financial obligations had placed considerable financial pressure on ground handling companies, affecting their ability to meet obligations to workers, suppliers, statutory stakeholders, lenders and shareholders.

It also said the situation was undermining the capacity of its members to sustain the substantial investments required for safe and efficient ground handling operations.

“Under the terms of the notices, the affected airlines are required to pay 75 per cent of their outstanding indebtedness within seven days, while the remaining 25 per cent will be settled under a mutually agreed structured repayment plan to be completed within 90 days,” AGHAN stated.

Despite the hard stance, the association said it was not seeking to destabilise the domestic aviation industry, stressing that it recognised the critical role airlines play in Nigeria’s aviation ecosystem.

“AGHAN recognises the critical role of domestic airlines in Nigeria’s aviation ecosystem and remains committed to resolving outstanding financial obligations through constructive engagement and mutually acceptable arrangements,” it said.

However, the association maintained that the continued survival of ground handling companies depended on airlines meeting their commercial obligations.

It said, “The sustainability of ground handling operations requires a fair and responsible approach to commercial obligations across the aviation value chain.”

AGHAN further stated that it remained aligned with the five-point agenda of the Minister of Aviation and Aerospace Development and supported efforts to build a safe, efficient, commercially sustainable and globally competitive aviation industry.

The association appealed to the affected airlines to use the seven-day notice period to engage their respective ground handling companies and meet the agreed payment requirements to prevent disruption.

“AGHAN and its members remain committed to working constructively with domestic and international airlines, the Nigerian Civil Aviation Authority (NCAA), airport authorities and all aviation stakeholders to continuously improve safety, operational efficiency, service delivery and industry sustainability,” the statement added.

The association said that despite the prevailing financial challenges, its members would continue to invest in personnel, ground support equipment, technology, training, safety systems and quality assurance processes to support the development of Nigeria’s aviation industry.

 

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Yusuf Babalola

Yusuf Babalola

Yusuf Babalola is a Senior Correspondent with Leadership Newspaper, specialising in maritime, aviation, transport, and economic reporting in Nigeria. He is recognised for well-researched stories that illuminate policy developments, industry challenges, and stakeholder perspectives across Nigeria's logistics, shipping, and aviation sectors. His reporting is noted for its clarity, balance, and commitment to professional journalistic standards.

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