Allen Onyema, Chairman of Air Peace and Vice Chairman of the Airline Operators of Nigeria (AON), has issued a stark warning that several Nigerian airlines could shut down within the next 30 days if the Federal Government fails to urgently address the mounting challenges facing the aviation sector. Speaking in Lagos, Onyema described the current operating environment as an existential threat to domestic carriers, emphasizing that immediate action is critical to prevent more operators from going out of business.
What Did Onyema Say?
“Going into aviation is not a piece of cake. It is an industry that is not very rewarding. It is capital-intensive, yet less rewarding,” Onyema said, according to reports. He warned that without swift intervention, many airlines could become unable to continue operations. The Air Peace chairman attributed the pressure on airlines to a combination of factors, including high operating costs, aviation fuel expenses, government charges, financial obligations, and the challenging business environment.
Onyema also raised concerns over disputes involving aviation unions and airline operators, particularly regarding the payment of the five per cent Ticket Sales Charge (TSC). He warned that actions capable of disrupting airline operations could worsen the crisis and negatively affect passengers, workers, and the wider economy.
Financial Strain on Airlines
According to Onyema, Nigerian airlines generate significant revenue but face even higher expenses, including aircraft maintenance, fuel costs, insurance, foreign exchange-related expenses, and other operational charges. He illustrated the financial strain with a poignant observation: “People say airlines made N10 million today, but they don’t ask how much it cost to make that N10 million.” He explained that operators often spend far more to keep flights running, highlighting the precarious nature of the industry.
Onyema lamented that several Nigerian airlines had collapsed over the years because of the difficult operating environment, stressing that the sector requires urgent reforms to remain sustainable. His warning comes amid long-running concerns by airline operators over the cost of aviation fuel, access to foreign exchange, airport charges, and other expenses affecting the industry.
Context and Implications
Onyema’s warning does not mean Nigeria’s aviation industry has already collapsed. Rather, it highlights concerns from operators that continued pressure on airlines could force some domestic carriers to suspend operations or exit the market if solutions are not implemented. The Federal Government has previously engaged aviation stakeholders over industry challenges, including measures aimed at reducing pressure on operators and ensuring uninterrupted flight operations.
Industry stakeholders have continued to call for policies that will improve the business environment, reduce unnecessary costs, and support the survival of Nigerian airlines. The warning adds to a growing chorus of concerns about the viability of the aviation sector in Nigeria, which has seen several airlines fail in recent years due to similar economic pressures.
What’s at Stake?
The potential collapse of multiple airlines within a month would have severe consequences for passengers, workers, and the broader economy. Air travel is a critical component of Nigeria’s connectivity, and any disruption could impact business, tourism, and family travel. The aviation industry also supports numerous jobs, from pilots and cabin crew to ground staff and maintenance workers.
Onyema’s warning underscores the urgent need for government intervention to stabilize the sector. Possible measures could include reducing taxes and charges, providing access to affordable foreign exchange, and implementing policies that lower operational costs. Without such actions, the future of Nigerian aviation remains uncertain, and the 30-day timeline serves as a stark reminder of the industry’s fragility.
