Nigeria’s domestic aviation industry may be heading towards another major crisis, with Air Peace Chairman, Allen Onyema, warning that several airlines could be forced out of business within the next 30 days if urgent action is not taken.
Onyema issued the warning as concerns continue to grow over the financial pressures confronting operators, including the ongoing dispute surrounding the five per cent Ticket and Cargo Sales Charge, TSC.
Speaking on the sidelines of the launch of Pathways, Pilgrimage and Destiny, a biography of Med-View Airline Chairman, Muneer Bankole, Onyema insisted that the disagreement over the statutory charge should not be interpreted as airlines attempting to evade their obligations.
According to him, the central issue is the way the charge is currently collected and the financial burden the system places on already struggling operators.
He called for a fresh dialogue between the Federal Government and airline operators, arguing that a simpler collection mechanism could end the recurring disagreements.
One of his suggestions is the introduction of a fixed charge per unit, which he believes would remove uncertainty over which components of passengers’ fares should attract the levy.
Onyema stressed that airlines are not opposed to paying legitimate statutory charges, but want a collection system that is clear, predictable and workable.
He urged the government and industry stakeholders to engage constructively rather than allow the disagreement to deepen the financial difficulties facing domestic carriers.
His warning comes against the backdrop of an aviation sector already battling several structural and operational problems.
The Air Peace chairman identified high borrowing costs, inadequate infrastructure, bird strikes and multiple charges as some of the factors placing enormous pressure on airlines.
He also raised concerns about the history of airline failures in Nigeria, noting that more than 50 domestic carriers have folded over the years.
For Onyema, the repeated collapse of airlines is a warning that the current operating environment requires urgent attention if indigenous carriers are to survive.
The airline executive also criticised threats by labour unions to picket airlines over the TSC controversy.
He described the proposed action as unprecedented and said it amounted to an attempt to intimidate operators.
Onyema maintained that airlines had already been engaging with the Nigerian Civil Aviation Authority and the Federal Ministry of Aviation over the matter.
He questioned why labour unions should intervene in a dispute that, according to him, is fundamentally between airlines and the relevant government authorities.
The warning is particularly significant because any disruption to domestic airline operations could affect passengers, businesses and other sectors that depend heavily on air transportation.
Onyema appealed to the Federal Government to act quickly before more operators are pushed to the brink.
He expressed confidence that President Bola Tinubu remains committed to supporting indigenous airlines and would not want Nigeria’s domestic aviation industry to collapse.
The Air Peace chairman therefore called for policies that would reduce pressure on local carriers and create an environment in which airlines can remain financially viable.
At the heart of his warning is a broader concern: Nigeria cannot sustain a strong aviation sector if airlines continually struggle with mounting costs, regulatory charges and infrastructure limitations.
With the 30-day warning now hanging over the industry, attention is likely to turn to the Federal Government and aviation regulators to determine whether immediate measures can prevent another wave of airline failures.
For passengers, the stakes could be significant.
A reduction in the number of operating airlines could ultimately mean fewer choices, reduced competition and greater pressure on airfares and domestic connectivity.
