Nigeria’s domestic aviation industry could witness the collapse of several airlines within the next 30 days unless urgent government intervention addresses worsening operating conditions, Chairman of Air Peace, Allen Onyema, has warned.
Onyema raised the alarm in Lagos during an interview with aviation journalists, where he explained that the challenges confronting indigenous carriers had reached a level that now threatens their survival. He maintained that the industry was facing an existential crisis and likened the situation to the conditions that preceded the collapse of the defunct Nigerian Airways.
He revealed d that many local operators were struggling to remain in business despite their strategic contribution to the country’s economy.
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Onyema said, “The next 30 days will be critical. A lot of airlines in this country will go extinct if nothing is done.”
He argued that public perception of airline profitability often ignores the enormous cost of running flight operations. According to him, revenue figures alone do not reflect the financial realities confronting operators.
He explained: “People say airlines made N10 million today, but they don’t ask how much it cost to make that N10 million. Sometimes you spend N30 million to generate N10 million. That is why airlines are struggling.”
Ticket levy dispute deepens pressure
Onyema spoke against the backdrop of the dispute between domestic airlines and aviation labour unions over the five per cent Ticket Sales Charge (TSC).
The unions have threatened to picket airline operations, insisting that the carriers have failed to remit the statutory levy through the Nigerian Civil Aviation Authority (NCAA), a development they said has affected the finances of aviation agencies and the welfare of their workers.
Onyema, however, still insisted that deploying labour action to settle financial disagreements could destabilise the aviation industry and worsen existing challenges.
He warned that any disruption of flight operations would affect passengers, workers, and the economy at large.
Operators battle rising costs
Beyond the dispute over the ticket levy, Onyema established that airlines continue to contend with a difficult business environment marked by high interest rates, multiple taxation, foreign exchange constraints, and escalating operating costs.
He said the International Air Transport Association (IATA) had also acknowledged the difficult operating climate confronting airlines in Nigeria.
According to him, aviation remains one of the country’s most capital-intensive sectors despite offering limited financial returns, leaving operators under sustained economic pressure.
Call for urgent intervention
Onyema disclosed that more than 50 airlines had ceased operations in Nigeria over the years, despite many of their promoters recording success in other sectors of the economy.
He appealed to the Federal Government and other stakeholders to introduce measures that would ease the financial burden on airlines and improve the operating environment.
According to him, without immediate intervention, the country’s domestic aviation sector could face another wave of airline failures, with implications for air transport services, employment, and connectivity across Nigeria.
