In a bold legal move, Romanian airline Dan Air has petitioned the Nigerian High Court to register and enforce a $400,212 judgment debt against Nigeria’s troubled airline, Arik Air Limited. The debt stems from a ruling by the Central London County Court in 2023, which Arik Air has allegedly failed to honor.
This international legal tussle could see Dan Air, based in Bucharest, Romania, target Arik Air’s Nigerian assets to recover the outstanding sum. The petition, filed under the Reciprocal Enforcement of Judgments Ordinance, highlights the complexities of cross-border disputes in the aviation sector.
According to court filings, Dan Air secured a judgment in October 2023 against Arik Air for $363,625.85 in unpaid debts, with an additional $36,586.90 in interest. The judgment stipulated a 6% annual interest on the sum, translating to an additional $59.77 per day until the debt is fully paid. Despite the clear ruling, Dan Air claims Arik Air has not taken any steps toward repayment.
The Romanian airline is now seeking the Nigerian court’s intervention to enforce the judgment locally. Legal experts explain that under Nigeria’s Reciprocal Enforcement of Judgments Ordinance, judgments from certain foreign jurisdictions, including the United Kingdom, can be recognized and enforced in Nigeria.
“Without enforcement in Nigeria, recovering this debt from Arik Air remains an uphill task,” Dan Air stated in its petition. “We are left with no option but to seek the court’s support to ensure compliance.”
Arik Air, once Nigeria’s largest airline, has been under receivership since 2017 due to mounting financial troubles. The airline’s assets and operations remain active in Nigeria, making it an attractive target for judgment enforcement. If Dan Air succeeds in registering the debt, it could move to seize Arik Air’s local assets to satisfy the judgment.
“Aviation disputes like this highlight the risks in the industry,” said a Lagos-based legal analyst. “Arik Air’s financial woes have left creditors scrambling for payments, and this case could set a precedent for others to follow.”
In its filing, Dan Air outlined several requests for the Nigerian High Court:
- Registration of the British Judgment: To officially recognize the October 2023 judgment as enforceable in Nigeria.
- Permission to Enforce: Granting Dan Air the legal right to pursue recovery actions against Arik Air’s Nigerian assets.
- Full Debt Recovery: Ensuring payment of the $400,212.75 debt, including interest and accruing daily penalties.
“Unless this court intervenes, Dan Air may never fully recover the amount owed,” the petition read. “This judgment remains wholly unsatisfied despite clear rulings from the British court.”
Arik Air’s financial struggles have been widely documented. Once a beacon of Nigerian aviation, the airline fell into receivership under the Asset Management Corporation of Nigeria (AMCON) in 2017 due to unsustainable debts exceeding $1 billion. While AMCON has kept the airline operational, creditors like Dan Air have found it challenging to recoup their funds.
“This case is a reminder of the financial risks international businesses face when dealing with struggling local companies,” said an aviation consultant. “It’s not just about contracts; enforcement is often the real battle.”
Dan Air’s move underscores the growing reliance on international legal frameworks to resolve commercial disputes. With Nigeria serving as a major aviation hub in Africa, the outcome of this case could have far-reaching consequences for foreign companies operating in the country.
“The Reciprocal Enforcement of Judgments Ordinance is a vital tool,” noted a legal expert. “It allows foreign creditors to navigate local systems effectively, ensuring they are not left out in the cold.”
If the court grants Dan Air’s request, it could pave the way for other foreign creditors to pursue similar actions against Nigerian entities with outstanding debts.
As the case unfolds, all eyes are on the Nigerian High Court to see whether it will grant Dan Air’s petition. If successful, Arik Air could face significant operational disruptions, with potential asset seizures affecting its already precarious position in the aviation market.
For Dan Air, the stakes are clear: enforcing the judgment is not just about recovering funds but also about sending a strong message to defaulting partners.
“Nigeria remains an important market for aviation, but we must ensure that agreements are respected and debts honored,” Dan Air’s representative stated.
For Arik Air, however, the case adds another layer to its financial woes, as the once-mighty airline struggles to stay afloat in a highly competitive industry.
