Nigeria’s Aviation Industry May Collapse Soon – Allen Onyema Warns

As Nigeria battles challenging socio-political and economic issues, there are indications that the aviation industry may soon be hit with a serious crisis that could affect this sector of the economy.

This followed the alarm raised by the Air Peace Chairman, Allen Onyema, who spoke on the sidelines of the launch of Pathways, Pilgrimage and Destiny, the biography of Med-View Airline Chairman, Muneer Bankole, warning that Nigeria’s aviation industry is facing an existential crisis.

According to him, several domestic airlines could collapse within the next 30 days unless urgent measures are taken to address the challenges confronting operators.

Onyema pointed out that the controversy surrounding the remittance of the five per cent Ticket and Cargo Sales Charge (TSC) was not about airlines’ refusal to pay statutory charges, but the burden imposed by the current collection system.

He lamented that Nigerian airlines are operating under extremely harsh conditions, with high borrowing costs, inadequate infrastructure, bird strikes and multiple operating charges threatening their survival.

Onyema urged the Federal Government to intervene urgently to prevent further airline failures, noting that more than 50 Nigerian airlines had folded over the years despite the success of their owners in other sectors.

To this end, the Air Peace Chairman solicited constructive engagement between the government and airline operators to develop a more practical revenue collection model, suggesting a fixed unit charge that would eliminate disputes over the components of airfares subject to the levy.

He also condemned threats by labour unions to picket airlines over the dispute, describing the move as unprecedented and an attempt to intimidate operators.

Onyema noted that airlines had consistently engaged with the Nigerian Civil Aviation Authority (NCAA) and the Federal Ministry of Aviation, stressing that the industry had no dispute with labour unions.

The Air Peace Boss however expressed confidence that President Bola Tinubu remained supportive of indigenous carriers and would not allow the industry to collapse.

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