Air Peace CEO, Dr. Allen Onyema
Air Peace Chairman, Allen Onyema, has warned that Nigeria’s aviation industry is on the brink of a major crisis, saying several local airlines could shut down within the next 30 days if urgent action is not taken.
He made the remark during the launch of Pathways, Pilgrimage and Destiny, the biography of Med-View Airline Chairman, Muneer Bankole.
Onyema said the dispute over the remittance of the five per cent Ticket and Cargo Sales Charge (TSC) is not because airlines are unwilling to pay, but because of the current method of collection.
He urged the Federal Government and airline operators to work together on a more practical revenue collection system, including a fixed unit charge.
“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 poses existential threats.
“Except something drastic is done very quickly within the next 30 days, a lot of airlines might go extinct,” Onyema said.
He also criticised plans by labour unions to picket airlines over the disagreement, describing the move as unnecessary and intimidating.
According to him, airlines have continued discussions with the Nigerian Civil Aviation Authority (NCAA) and the Federal Ministry of Aviation, insisting there is no dispute with labour unions.
Onyema said domestic airlines are battling high borrowing costs, poor infrastructure, bird strikes and multiple operating charges that are threatening their survival.
“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 added.
He appealed to President Bola Tinubu to support indigenous airlines with policies that will keep the sector alive, noting that more than 50 Nigerian airlines have collapsed over the years.
