Nigeria’s aviation industry may collapse within 30 days without urgent action, Air Peace chairman warns

• Allen Onyema warned that many Nigerian airlines could shut down within 30 days without urgent intervention.

• He blamed rising operating costs, aviation charges and financial pressures for the crisis.

• The Air Peace chairman described the situation as an existential threat to domestic carriers.

• Onyema’s warning is a concern about possible airline failures, not a confirmation that the aviation industry has collapsed.

The Chairman of Air Peace, Allen Onyema, has warned that several Nigerian airlines could shut down within the next 30 days if the Federal Government does not urgently intervene to address the challenges facing the aviation sector. 

Onyema, who is also the Vice Chairman of the Airline Operators of Nigeria (AON), issued the warning in Lagos while speaking about the difficult operating environment facing domestic carriers. He described the situation as an existential threat to airlines, saying immediate action was needed to prevent more operators from going out of business. 

“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,” Onyema said, warning that without swift intervention, many airlines could become unable to continue operations.

The Air Peace chairman blamed the pressure on airlines on a combination of factors, including high operating costs, aviation fuel expenses, government charges, financial obligations and the challenging business environment. 

Onyema also raised concerns over disputes involving aviation unions and airline operators, particularly over the payment of the five per cent Ticket Sales Charge (TSC). He warned that actions capable of disrupting airline operations could worsen the crisis and affect passengers, workers and the wider economy. 

According to him, Nigerian airlines generate significant revenue but face even higher expenses, including aircraft maintenance, fuel costs, insurance, foreign exchange-related expenses and other operational charges.

“People say airlines made N10 million today, but they don’t ask how much it cost to make that N10 million,” Onyema was quoted as saying, explaining that operators often spend far more to keep flights running. 

He also lamented that several Nigerian airlines had collapsed over the years because of the difficult operating environment, saying the sector requires urgent reforms to remain sustainable. 

The warning comes amid long-running concerns by airline operators over the cost of aviation fuel, access to foreign exchange, airport charges and other expenses affecting the industry.

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However, Onyema’s warning does not mean Nigeria’s aviation industry has already collapsed. Rather, it highlights concerns from operators that continued pressure on airlines could force some domestic carriers to suspend operations or exit the market if solutions are not implemented. 

The Federal Government has previously engaged aviation stakeholders over industry challenges, including measures aimed at reducing pressure on operators and ensuring uninterrupted flight operations.

Industry stakeholders have continued to call for policies that will improve the business environment, reduce unnecessary costs and support the survival of Nigerian airlines.