Arik Air (W3, Lagos) was this past weekend forced to cancel a total of thirty-seven flights at its Abuja Nnamdi Azikiwe International Airport base after the the Association of Air Transport Association of Nigeria (ATTSAN) and the National Union of Air Transport Employers (NUATE) grounded the carrier for alleged failure to settle outstanding debts owed to the Federal Airports Authority of Nige­ria (FAAN).

Nigerian media reports state the operator is claiming NGN1.2 billion (USD6.03 million) in unpaid handling fees and service charges.

The carrier in turn has denied the allegations claiming to have deposited over NGN4 billion (USD20.1 million) with FAAN for parking and landing fees, rent, Passenger Service Charges (PSC) and fuel surcharges for 2014 alone.

A similar stand-off occurred in 2012 when FAAN grounded Arik, again over unpaid dues. However, the two came to an agreement in which Arik would settle its legacy debts while paying-off its charges as they accrued. Since then, the airline has had to clear its dues in advance.

“Arik Air insists that it does not owe FAAN any money since the agency’s charges are paid in advance (pay-as-you-go basis). This has been the practice for over two years when all the aviation agencies introduced pay-as-you-go for their services. The bogus debt claim by FAAN is therefore unacceptable to Arik Air," a statement read.

Both parties have since held talks to help solve the impasse which has had severe repercussions for the rest of Arik Air's operations, both domestically and internationally.