Nigeria's Cross River state government has cancelled its contract with Aero Contractors (N2, Lagos) and Harrier Global Services Limited t/a Harrier Airlines (Lagos) for the operation of its dormant virtual carrier, Cally Air (Calabar), amid a dispute regarding the attachment of a B737-300 over NGN900 million naira (USD1.9 million) in outstanding service fees.

As reported, B737-300 5N-BYQ (msn 30334) is owned by Cally Air but is stored by Aero Contractors at Lagos, which insists on the Cross River state government repaying the above outstanding sum for operations and maintenance services over the last two years.

Now, the Cross River state government has cancelled a tripartite Memorandum of Understanding (MoU) on the operation of Cally Air with Aero Contractors and Harrier Global Services Limited reports Daily Trust newspaper.

Instead, it has appointed Meler's Global Resources Limited as the lease manager for the Cally Air aircraft. Contrary to Nigerian news reports, the company's status is listed as "active" in the Nigerian Corporate Affairs Commission database under registration number 1085541.