The association said the decision followed the airline’s failure to honour agreed payment arrangements despite repeated efforts by ground handling companies to recover the money owed to them.
In a statement signed by AGHAN President Olaniyi Adigun and Vice President Bashir Ahmed, the association said several indigenous airlines had complied with payment plans negotiated with ground handlers, but alleged that XEJet had failed to meet its commitments.
AGHAN said its members would continue to withhold services from the airline until its outstanding obligations were settled.
The association also warned that similar action could be taken against other airlines that fail to honour agreed payment arrangements.
‘We Can’t Continue to Operate Like This’
Explaining the decision, AGHAN said its members had made several efforts to resolve the matter without withdrawing services but claimed that those efforts had not produced the desired result.
“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. Our members have made every effort to ensure that the airline complied, but its management has been recalcitrant,” the statement read.
The association said prolonged non-payment was putting pressure on ground handling companies and affecting their ability to invest in equipment and improve staff welfare.
“We can’t continue to operate like this. Why are some companies not willing to pay for services rendered to them? This is intentional. It is affecting our members at all cadres. We need to increase our equipment, while also boosting the welfare of our staff, but we can’t do this when some organisations are not willing to pay for services rendered to them,” AGHAN stated.
The association put the alleged outstanding debt at approximately N300 million and said its members had fully complied with the directive to suspend services.
“As it stands, the company owes our members about N300 million. Hence, we have instructed our members to withdraw services from the airline and this has been complied 100 per cent,” it said.
Association Warns Other Airlines
AGHAN said the action against XEJet was intended to reinforce the need for airlines to honour financial commitments to companies providing essential ground services.
The association maintained that ground handlers require timely payments to sustain operations, replace and expand equipment and maintain adequate welfare programmes for their workforce.
It said airlines that comply with agreed payment plans would continue to receive services, while those that fail to meet their obligations could face similar measures.
The development comes amid broader financial pressures within Nigeria’s aviation industry, where airlines and service providers continue to contend with rising operational costs and the need to maintain critical infrastructure and equipment.
For XEJet, the suspension of ground handling services could put additional pressure on its operations if the dispute remains unresolved, making settlement of the alleged debt central to the restoration of services.