Onyema Warns Nigerian Airlines Face Collapse Within 30 Days

Air Peace Chairman Allen Onyema has warned that Nigeria’s domestic aviation industry could face a wave of airline closures within the next 30 days unless the Federal Government takes urgent steps to address the sector’s growing challenges.

Speaking during an interview with aviation journalists in Lagos, Onyema described the current state of the sector as one of the most difficult in its history, saying the operating environment has become increasingly unsustainable for indigenous carriers.

He said the challenges facing the industry are comparable to the circumstances that led to the collapse of the former national carrier, Nigerian Airways, warning that many domestic airlines are now fighting for survival.

According to Onyema, the warning comes amid growing tensions between airline operators and aviation labour unions over the controversial five per cent Ticket Sales Charge (TSC). The unions have threatened to embark on industrial action, accusing airlines of failing to remit the statutory charge to the Nigerian Civil Aviation Authority (NCAA), a situation they say has affected the finances of aviation agencies and workers’ welfare.

The Air Peace chairman argued that Nigeria’s business environment remains one of the toughest for airline operations, noting that even the International Air Transport Association (IATA) has acknowledged the difficulties faced by operators in the country.

He explained that the public often assumes airlines make substantial profits without considering the enormous costs involved in keeping aircraft in service. According to him, the industry’s operating expenses frequently exceed revenue, making profitability increasingly difficult.

Onyema cautioned against using labour unions to pressure airlines over financial disputes, warning that any disruption to flight operations would have far-reaching consequences for passengers, employees and the wider economy.

He also described aviation as one of Nigeria’s most capital-intensive industries, citing high interest rates, multiple taxes, foreign exchange constraints, rising maintenance costs and other operational expenses as major factors threatening the survival of local carriers.

The airline executive noted that more than 50 Nigerian airlines have shut down over the years despite significant investments by their promoters, many of whom have succeeded in other sectors of the economy.

He appealed to the Federal Government and relevant stakeholders to urgently introduce policies to ease the financial burden on domestic airlines, improve the operating environment and ensure the long-term sustainability of Nigeria’s aviation industry.

Industry observers have repeatedly called for reforms, including improved access to foreign exchange, lower operating costs and a review of industry charges, warning that continued financial pressure could further weaken the country’s domestic air transport sector.