Many airlines risk collapse within 30 days, Onyema warns

Allen Onyema, Vice Chairman of the Airline Operators of Nigeria, issued a stark warning that numerous domestic airlines could cease operations within the next 30 days if the Federal Government does not promptly address the industry's challenges. Onyema, who also chairs Air Peace, spoke on Wednesday at a book launch in Lagos, describing the aviation sector as demanding significant capital with minimal returns.

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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. Today, we are facing a phase that has existential threats. Except something drastic is done very quickly within the next 30 days, a lot of airlines might go extinct.

"Except something drastic is done very quickly within the next 30 days, a lot of airlines might go extinct," Onyema stated, emphasizing the existential threats currently facing airlines. He also urged aviation unions to reconsider their planned picketing of airlines regarding the non-remittance of the five percent Ticket Sales Charge. Onyema warned that such actions would lead to solidarity suspensions from other domestic carriers.

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If they picket any airline, others will go because there’s no need for that. There is nowhere in the world that government agencies use unions to talk about issues of debt.

"If they picket any airline, others will go because there’s no need for that. There is nowhere in the world that government agencies use unions to talk about issues of debt," he asserted. Onyema expressed concern over the harsh operating environment, noting that over 50 airlines have shut down in Nigeria. He stressed that airlines are willing to contribute to government revenue but called for a more sustainable approach to taxation and revenue generation within the industry.

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Everybody pities Nigerian airlines, yet nobody wants to do anything about their situation. Over 50 airlines have come and gone. The owners of these airlines succeeded in other businesses, yet they failed in airline business.