Air Peace Chairman, Allen Onyema, has raised alarms about Nigeria’s aviation industry, indicating it is on the brink of a major crisis. According to Onyema, urgent actions are needed to save several domestic airlines from potential collapse within the next month due to existing challenges operators face.
He made these remarks during the launch of “Pathways, Pilgrimage and Destiny,” a biography of Med-View Airline Chairman, Muneer Bankole. Onyema clarified that the ongoing issues over the five percent Ticket and Cargo Sales Charge (TSC) stem not from airlines refusing to pay, but from the heavy burden of the current collection system.
Onyema advocated for a dialogue between the government and airline operators to devise a more efficient revenue collection model. He suggested implementing a fixed unit charge to avoid disputes regarding ticket pricing components subject to the levy.
He emphasized that entering the aviation sector isn’t easy, as it requires significant investment with minimal returns. The current situation poses severe risks to airline survival, and drastic measures are needed within 30 days to prevent many from going under.
Furthermore, Onyema criticized labor unions’ threats to picket airlines over the financial dispute, labeling such actions as unprecedented. He noted that airlines have consistently engaged with the Nigerian Civil Aviation Authority (NCAA) and the Federal Ministry of Aviation, asserting there is no conflict with labor unions.
He highlighted the extreme challenges faced by Nigerian airlines, such as high borrowing costs, inadequate infrastructure, bird strikes, and multiple operational fees threatening their viability.
Onyema stressed that picketing airlines would be detrimental since it is not standard for government agencies to use unions for debt-related issues. He urged the Federal Government to take immediate action to prevent further collapses in the industry, referencing over 50 Nigerian airlines that have failed despite their owners’ success in other sectors.
Onyema expressed confidence in President Bola Tinubu’s support for local carriers and his commitment to preserving the industry. He called for policies that enhance rather than diminish domestic airlines, ensuring a sustainable future for Nigeria’s aviation sector.
