By Benson Daniel
Chairman of Air Peace, Allen Onyema, has warned that Nigeria’s domestic aviation industry is facing a severe financial and operational crisis, saying several airlines could cease operations within the next 30 days unless urgent measures are taken to address the challenges confronting operators.
Onyema raised the alarm while speaking on the sidelines of the launch of a biography of Med View Airline Chairman, Muneer Bankole. He described the current situation in the aviation sector as an existential threat to domestic airlines and called for immediate intervention to prevent further failures.
According to him, the challenges confronting Nigerian airlines extend beyond the current dispute over the five per cent Ticket and Cargo Sales Charge. He argued that the central issue is the way the charge is collected and the financial burden the existing system places on operators.
Onyema said airlines were not opposed to paying statutory charges but wanted a more practical and transparent collection mechanism. He suggested the introduction of a fixed unit charge that would remove disputes over which components of airfares should be subjected to the levy.
He stressed that the aviation business is highly capital intensive and offers limited returns compared with the enormous financial commitments required to keep airlines operating. The situation, he said, has become increasingly difficult for domestic carriers as operators struggle with several layers of costs.
The Air Peace chairman identified high borrowing costs, inadequate aviation infrastructure, bird strikes and multiple operating charges among the factors putting additional pressure on airlines.
He also expressed concern over threats by labour unions to picket airlines in connection with the Ticket and Cargo Sales Charge dispute. Onyema described such threats as inappropriate, arguing that airline operators had been engaging with relevant government agencies, including the Nigerian Civil Aviation Authority and the Federal Ministry of Aviation.
He maintained that the dispute should be resolved through constructive engagement between the government and airline operators rather than through industrial action that could further weaken already vulnerable companies.
The aviation industry has faced persistent financial difficulties over the years, with operators contending with high fuel costs, foreign exchange pressures, aircraft maintenance expenses, financing challenges and infrastructure limitations.
Onyema noted that more than 50 Nigerian airlines had folded over the years, despite the fact that many of their owners had successfully operated businesses in other sectors. He warned that without decisive action, more carriers could suffer the same fate.
The Air Peace chairman therefore appealed to the Federal Government to urgently introduce policies capable of strengthening domestic airlines and improving the operating environment. He argued that the survival of local carriers was important to the development of Nigeria’s aviation industry and the wider economy.
He also expressed confidence that President Bola Tinubu’s administration would be willing to support indigenous airlines and prevent the collapse of the sector.
The warning comes at a time when domestic air travel remains an important component of Nigeria’s transportation network, connecting major commercial centres and providing an alternative to increasingly difficult road transportation.
A wave of airline failures could reduce competition, limit passenger choices and potentially increase pressure on the few carriers that remain operational. It could also affect employment, tourism, trade and other businesses that depend on reliable air connectivity.
The Federal Government is therefore expected to face increasing pressure from industry operators and stakeholders to address the structural problems affecting domestic aviation.
For airline operators, the immediate concern remains the rising cost of doing business and the need for a regulatory and financial environment that allows carriers to operate sustainably.
Onyema’s warning has consequently renewed calls for urgent government action to prevent further airline closures and protect the long term viability of Nigeria’s aviation industry.
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