Nigerian airlines may go extinct within 30 days without government intervention, warns Air Peace chairman

Nigerian domestic airlines are on the brink of collapse, with many potentially ceasing operations within the next month unless the Federal Government intervenes, warned Allen Onyema, Chairman of Air Peace and 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 poses existential threats. Except something drastic is done very quickly within the next 30 days, a lot of airlines might go extinct.

Onyema described the aviation industry as capital-intensive and less rewarding, currently facing "existential threats." He cited high operating costs, multiple financial obligations, and difficulties accessing financing as primary drivers of this crisis. The warning comes amid ongoing concerns about the price of aviation fuel and various regulatory charges imposed on carriers.

Adding to the pressure, Onyema criticized the planned picketing of airlines by aviation unions over the non-remittance of the five percent Ticket Sales Charge (TSC). He argued that using unions to address debt issues is unprecedented globally and warned that picketing one airline could lead to wider disruptions in domestic air travel, with other carriers supporting affected airlines.

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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.

The Nigerian Civil Aviation Authority (NCAA) collects the TSC, which is statutorily shared with other aviation agencies. While the NCAA acknowledged remittance challenges and had previously deferred a requirement for advance payment guarantees, Onyema stressed the need for a broader review of government charges and the overall operating environment for airlines.

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The airlines are not against helping the government generate revenue. But no airline in the world is taxed directly for revenue. The airlines indirectly provide revenue for the government.