Aviation dispute grounds flights, threatens N2bn daily revenue

Nigeria’s aviation sector suffered a major operational setback on Tuesday as union picketing disrupted domestic flight operations across Lagos and Abuja, while industry estimates put the immediate revenue exposure at about N2 billion.
The industrial action, centred on allegations that airlines have failed to remit the five per cent Ticket Sales Charge, TSC, and have restricted workers from joining unions, left passengers stranded, and forced several carriers to delay or cancel scheduled flights.
Air Peace, United Nigeria Airlines, Ibom Air, Enugu Air, and Aero Contractors were among the operators affected before the unions suspended the picketing at about 2 p.m. to review their next steps.
The scale of the disruption highlights the wider economic cost of the dispute. Industry estimates indicate that Nigerian airlines generate between N1.8 billion and N2 billion daily from passenger tickets and cargo operations. The figure excludes income earned by aviation agencies, airport operators, ground handlers, caterers, travel agencies, hotels, car-hire firms, and other businesses dependent on air traffic.
Air Peace, which accounts for an estimated 40 per cent of daily airline revenue, operates more than 100 flights a day across its domestic, regional, and international network, and carries an estimated 8,000 passengers daily.
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The unions, led by the Air Transport Services Senior Staff Association of Nigeria, ATSSSAN, and the National Union of Air Transport Employees, NUATE, alongside the Nigeria Labour Congress (NLC), and Trade Union Congress (TUC), accuse airlines of withholding about N20 billion in TSC payments owed to aviation agencies.
They specifically alleged that Air Peace alone owed about N15 billion and had frustrated workers seeking to unionise.
The unions blocked access to Air Peace’s Alpha and Zulu terminals at the Murtala Muhammed Airport Terminal 1, as well as its operations at Terminal 2 and the Nnamdi Azikiwe International Airport, Abuja.
Air Peace spokesman, Efe Osifo-Whiskey, said the blockade prevented scheduled flights from departing from Lagos and Abuja and significantly disrupted passengers travelling across the airline’s network.
The airline apologised to affected travellers and said passengers booked on later flights were being contacted as the situation developed.
ATSSSAN General Secretary, Frances Akinjole, said the unions resorted to picketing after Air Peace allegedly refused to engage them on the TSC debt and workers’ unionisation.
He said a meeting convened by Aviation and Aerospace Development Minister Festus Keyamo the previous week failed to resolve the dispute because Air Peace communicated that it would not meet with the unions.
Akinjole confirmed that the unions had suspended the action to review their strategy, but did not indicate how long the suspension would last.
The disruption also forced United Nigeria Airlines to cancel 32 flights.
UNA spokesman, Chibuike Uloka, said the airline’s eight serviceable aircraft had been fully booked before the picketing. Based on the affected aircraft and scheduled flights, the airline could have lost about N500 million from the disruption.
Aero Contractors CEO, Ado Sanusi, urged the Federal Government to investigate the unions’ action. He argued that disputes over TSC remittances should not result in operators taking the law into their own hands.
Sanusi said Aero Contractors suffered a significant impact on its Abuja operations, while its Lagos flights were only mildly affected because the picketing was concentrated around the General Aviation Terminal.
He said the airline would need to assess the full financial consequences before putting a figure on its losses.
Sanusi also questioned why the dispute had escalated to industrial action when aviation agencies have established mechanisms for collecting the five per cent charge.
The NCAA has meanwhile appealed for restraint, warning that prolonged disruption could further affect passengers and other aviation stakeholders.
The Director-General of Civil Aviation, Chris Najomo, implored the unions to suspend further action and return to negotiations.
Najomo said the regulator remained concerned about the disruption but stressed that the dispute had not compromised flight safety.
He said, “The NCAA assures the travelling public that flight safety remains uncompromised and that the Authority continues to exercise its statutory safety oversight responsibilities.”
He urged all parties to embrace dialogue and expressed confidence that the dispute would be resolved and normal flight operations restored.
The latest confrontation is not the first time aviation unions have paralysed operations over labour disputes.
Since the commencement of operations at the Murtala Muhammed Airport Two, unions have picketed Bi-Courtney Aviation Services Limited at least twice in the past eight years. On October 9, 2018, ATSSSAN, NUATE, and the National Association of Aircraft Pilots and Engineers (NAAPE) blocked access to MMA2 during an industrial dispute involving the terminal operator and its workers.
On November 1, 2022, the terminal operator was again picketed over allegations that its staff were being prevented from joining unions.
The recurrence of such disruptions has placed the immediate dispute beyond the issue of unpaid charges or union membership, with airlines, labour unions, and regulators now facing pressure to resolve the underlying disagreements without repeatedly bringing passenger operations to a halt.



