Nigeria's airlines face extinction in 30 days without urgent action, Onyema warns. Air Peace chairman Allen Onyema has warned that Nigerian airlines could collapse within 30 days without urgent government intervention over rising costs and industry challenges.
Aviation Industry on Brink of Collapse
Allen Onyema, chairman of Air Peace, has sounded the alarm over the state of Nigeria's aviation industry. The industry is on the brink of collapse, with several airlines facing extinction within 30 days if urgent action is not taken. Rising operating costs, aviation charges, and financial pressures have created an existential threat to domestic carriers.
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.
Operating Environment Proves Challenging
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. He explained that operators often spend far more to keep flights running than they generate in revenue. "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.
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.
Industry Stakeholders Call for Reforms
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. Industry stakeholders have continued to call for policies that will improve the business environment, reduce unnecessary costs, and support the survival of Nigerian airlines.
The Federal Government has previously engaged aviation stakeholders over industry challenges, including measures aimed at reducing pressure on operators and ensuring uninterrupted flight operations. However, Onyema's warning highlights concerns that continued pressure on airlines could force some domestic carriers to suspend operations or exit the market if solutions are not implemented.
What's at Stake
The collapse of Nigeria's aviation industry would have far-reaching consequences for the country's economy and citizens. Air travel is a vital link between Nigeria and the rest of the world, facilitating trade, tourism, and cultural exchange. The industry also provides employment opportunities for thousands of Nigerians, both directly and indirectly.
The situation is dire, and immediate action is needed to prevent a collapse. The Federal Government must engage with industry stakeholders to find solutions to the challenges facing the aviation sector. Only then can Nigeria's airlines hope to survive and thrive in a competitive global industry.
Source: Pulse.ng
