The Vice Chairman of the Airline Operators of Nigeria (AON), Allen Onyema, has warned that several domestic airlines could shut down within the next 30 days unless the Federal Government urgently intervenes to address the mounting challenges facing the aviation industry.
Onyema, who is also the Chairman of Air Peace, sounded the warning on Wednesday, August 5, while speaking at the launch of Pathways, Pilgrimage & Destiny: The Biography of Alhaji Muneer Bankole in Lagos, as reported by Vanguard.
He described the aviation sector as one of the most capital-intensive businesses in the country, yet one that offers little financial reward, saying operators are now battling conditions that threaten their continued existence.
“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 has existential threats. Except something drastic is done very quickly within the next 30 days, a lot of airlines might go extinct,” Onyema said.
The Air Peace chairman also criticised the planned picketing of airlines by aviation unions over the non-remittance of the five per cent Ticket Sales Charge (TSC), warning that such action could disrupt the entire domestic aviation industry.
According to him, if one airline is targeted, other carriers would halt operations in solidarity.
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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,” he said.
Onyema expressed concern over the difficult operating environment for airlines in Nigeria, noting that more than 50 carriers have folded over the years despite being owned by successful business people.
“Everybody pities Nigerian airlines, yet nobody wants to do anything about their situation. Over 50 airlines have come and gone. The owners of these airlines succeeded in other businesses, yet they failed in airline business,” he said.
While affirming that airline operators are willing to support government revenue generation, Onyema argued that the current approach is unsustainable.
“The airlines are not against helping government generate revenue. But no airline in the world is taxed directly for revenue. The airlines indirectly provide revenue for government,” Onyema added.
Nigeria’s domestic aviation sector has in recent years struggled with rising operational costs, foreign exchange shortages, high maintenance expenses, multiple taxes and regulatory charges, leading operators to repeatedly call for policy reforms to keep the industry afloat.