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Business & Economy

Max Air operations grounded nationwide over N9 billion debt

The FrontierThe FrontierJune 11, 2026 942 Minutes read0

The Aviation Ground Handlers Association of Nigeria (AGHAN), the umbrella body of ground handling companies in the country, has suspended ground handling services to Max Air over debt.

The action, which took effect today, effectively grounded the airline’s domestic operations nationwide, marking the first major enforcement move by the association against defaulting airlines, reports The Guardian.

Chairman of AGHAN, Mr. Olaniyi Adigun, said the decision became necessary following Max Air’s refusal to engage with the handling companies on the reconciliation and settlement of its outstanding indebtedness.

According to Adigun, while several other airlines owing the ground handling firms are currently in talks and reconciling their accounts, while Max Air has failed to respond positively to repeated efforts aimed at resolving the matter.

He explained that the association could no longer sustain the financial burden imposed by the airline’s prolonged non-payment for services rendered.

He said: “We took the decisive action on Max Air today (Thursday) because the airline refused to negotiate with us. While the other debtor airlines are negotiating with us, Max Air has blatantly refused to negotiate with the handling companies.

“Some of the other debtor airlines are already on the verge of signing Memoranda of Understandings (MoUs) with our members on debt repayment. This action should serve as a signal to other airlines that ground handling companies can no longer continue to provide services without payment.”

Adigun, however, clarified that the airline’s ongoing hajj operations would not be affected by the sanctions, noting that the handling charges for the pilgrimage flights are paid directly by the National Hajj Commission of Nigeria (NAHCON).

Investigations by our correspondent revealed that Max Air’s debt exposure to the two major ground handling companies — Skyway Aviation Handling Company Plc (SAHCO) and Nigerian Aviation Handling Company Plc (NAHCO), is estimated at about N1 billion.

The latest development follows months of disagreements between the handling companies and several airlines over the accumulation of unpaid service charges.

AGHAN had earlier issued a series of ultimatums to indebted airlines, warning that failure to settle outstanding obligations could lead to the withdrawal of services.

The association had initially planned to commence enforcement actions on May 1, 2026, but suspended the move in consideration of Workers’ Day celebrations and the need to maintain industrial harmony.

Subsequently, the association issued a fresh three-day ultimatum to the affected airlines, demanding immediate reconciliation and payment plans.

In previous statements, AGHAN lamented that the prolonged delay in settling the debts had placed severe financial and operational pressure on its member companies, which provide essential services including passenger facilitation, baggage handling, aircraft cleaning, cargo processing, ramp operations and aircraft turnaround support.

The association maintained that continued non-payment by airlines threatens the sustainability of ground handling operations and could ultimately affect service delivery across the nation’s aviation sector.

Efforts to obtain the reaction of Max Air to the development were unsuccessful as of the time of filing this report.

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