Ground handlers suspend services to Max Air over unpaid debts

Ground handling companies in Nigeria have suspended services to Max Air over unpaid debts tied to aviation support operations.

The suspension was announced by the Aviation Ground Handlers Association of Nigeria (AGHAN), the umbrella body of ground handling companies in the country, in a statement issued on Thursday in Lagos, according to the News Agency of Nigeria (NAN).

The association said the decision followed the airline’s alleged failure to settle outstanding obligations or engage in discussions aimed at reconciling its debts with service providers.

Ground handling covers essential airport support services provided to aircraft on the ground, including baggage handling, passenger assistance, aircraft towing, cargo processing, and ramp operations.

AGHAN Chairman, Mr Olaniyi Adigun, said the suspension marked the association’s first major enforcement action against a defaulting airline.

He explained that while some indebted airlines had opened negotiations and were working toward repayment agreements, Max Air had failed to respond to repeated attempts at reconciliation.

Adigun said the decision followed repeated but unsuccessful efforts to engage Max Air, stressing that ground handlers could no longer continue services without payment assurances. He noted that other indebted airlines had entered repayment talks, unlike Max Air, which remained unresponsive.

He said the move was aimed at enforcing financial discipline in the sector, warning that continued defaults were straining ground handling companies responsible for key airport operations.

He added that the suspension would not affect Hajj operations, as related handling charges are paid directly by the National Hajj Commission of Nigeria (NAHCON).

The development follows months of tensions between ground handling companies and airlines over unpaid service charges.

AGHAN has repeatedly warned that unpaid debts are straining its members, who provide services such as baggage handling, passenger facilitation, cargo processing, aircraft cleaning, ramp operations, and turnaround support. It said continued defaults could disrupt aviation services nationwide.

The development comes amid ongoing financial strain in Nigeria’s aviation sector, marked by repeated airline debt disputes, regulatory interventions, and asset recovery actions.

Arik Air’s exposure forms part of a wider AMCON recovery portfolio exceeding N455.17 billion, with only a limited number of aircraft serviceable at the point of takeover.

In November 2024, a Federal High Court in Lagos also ruled that Export Development Canada could repossess a CRJ1000 aircraft leased to Arik Air, reinforcing enforcement of the Cape Town Convention in Nigeria.