Another Nigerian airlines is in deep trouble as it has been technically grounded after insurance on its airplanes expired. This has left many of its customers stranded. The airline, Arik Air, has made effort to assure customers that the situation will soon be sorted. The airline’s Group CEO, Michael Arumemi-Ikhide, assured customers that it was fully committed to returning to normal operations and minimise any unfortunate inconvenience the cancellation of flights may have caused passengers.
The development comes less than two weeks after both Aero Contractors and FirstNation Airways suspended operations.
It is curious how the airline allowed insurance on all its airplanes expired on the same day, making it very unlawful to operate the equipment out of their destinations. It was also curious why the operator was not in the know as to when it was supposed to renew its insurance policy on its fleet.
At the Lagos airport, a large number of their fleet was seen on the tarmac of the Lagos airport.
As at 9 am today, the carrier was yet to make a flight out of Lagos or into Lagos indicating that a crisis may loom later today and tomorrow as people go back to work after the long Sallah holiday.
A source at the airport said insurance on the airplanes expired midnight of today.
Airlines always make the mistake of insuring their airlines same time making it difficult to operate their airplanes when they default on premiums.
The International Civil Aviation Authority (ICAO) and the United States Federal Aviation Administration (FAA) including Nigeria Civil Aviation Authority (NCAA) forbids the operations of civil aircraft without proper insurance.
The London insurance market is still the largest single centre for aviation insurance. The market is made up of the traditional Lloyd’s of London syndicates and numerous other traditional insurance markets.
Throughout the rest of the world there are national markets established in various countries, each dependent on the aviation activity within each country.
The United States has a large percentage of the world’s general aviation fleet and has a large established market. A
According to the 2014 report from GAMA (General Aviation Manufacturers Association), there are 362,000 general aviation aircraft worldwide, and 199,000 (or roughly 55%) are based in the United States.
