Nigerian airlines may go extinct in 30 days, warns Air Peace chairman

Nigeria's domestic airlines face an existential threat, with many potentially going out of business within the next 30 days unless the Federal Government intervenes urgently, according to Allen Onyema, Vice Chairman of the Airline Operators of Nigeria (AON).

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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.

Onyema, who also chairs Air Peace, Nigeria's largest airline, cautioned aviation unions against picketing any airline over the five percent Ticket Sales Charge (TSC). He warned that such actions would lead other domestic carriers to suspend operations, potentially crippling the industry.

Speaking at the launch of a biography in Lagos, Onyema described the aviation industry as "not a piece of cake," characterizing it as capital-intensive yet less rewarding. He noted that airlines are operating under "excruciating circumstances," a sentiment echoed by the International Air Transport Association (IATA), which has stated the difficulty for airlines to survive in Nigeria.

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The Nigerian airline industry doesn’t have any problem with any union, nor do we have business with the unions. This is an aberration; it has never been heard before.

Onyema lamented the high mortality rate of airlines in the country, with over 50 having failed. He questioned why airlines consistently fail despite owners' successes in other businesses, urging introspection. He also criticized the practice of government agencies using unions to discuss debt issues, highlighting that airlines borrow money at exorbitant interest rates of 30-33 percent, with little regard for their survival.

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The airlines in Nigeria are operating under very excruciating circumstances. Even the International Air Transport Association, IATA, has said it is very difficult for any airline to survive in this country.

The AON vice chairman stressed that the five percent TSC is not the sole burden; numerous other charges contribute to the airlines' financial strain. He called for solutions to ensure the industry's sustainability, emphasizing that airlines do not wish to accumulate debt and that a workable system is needed for all stakeholders.

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Everybody pities Nigerian airlines, yet nobody wants to do anything about their situation. Take a look at the mortality rate of airlines in Nigeria. Is anybody addressing it? Over 50 airlines have come and gone.