Many airlines risk collapse within 30 days, Onyema warns

Many airlines risk collapse within 30 days, according to Allen Onyema, the Vice Chairman of the Airline Operators of Nigeria and Chairman of Air Peace. Onyema issued the warning during the launch of the book Pathways, Pilgrimage & Destiny: The Biography of Alhaji Muneer Bankole in Lagos. He emphasized that unless the Federal Government takes immediate action, numerous domestic airlines could cease operations within the next month. Onyema described the aviation sector as capital-intensive but poorly rewarded, highlighting the severe financial pressures faced by airlines. He stated that the industry is currently experiencing existential threats, with the potential for widespread closures unless urgent measures are taken. “Going into aviation is not a piece of cake,” he said. “It is an industry that is not very rewarding. It is capital-intensive, yet less rewarding.” He further warned that the current economic climate poses a dire threat to the survival of airlines. “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. His remarks underscored the urgency of addressing the challenges facing the sector. In addition to the financial concerns, Onyema expressed caution regarding the planned picketing by aviation unions over the non-remittance of the five percent Ticket Sales Charge. He urged the unions to avoid such actions, warning that any attempt to disrupt airline operations could trigger a chain reaction. “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 also lamented the long-standing struggles of Nigerian airlines, pointing out that more than 50 airlines have ceased operations over the years. “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 noted. This highlights the persistent difficulties faced by operators despite prior successes. He reiterated that while airlines support efforts to help the government generate revenue, the current taxation model 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 explained. His comments reflect the broader tension between regulatory demands and operational realities within the industry. The warnings from Onyema come amid ongoing discussions around the Ticket Sales Charge, which remains a point of contention between airlines and the government. Recent reports indicate that the Federal Government has promised to pay the outstanding N35,000 wage award by August 15, though this does not directly address the financial strain on airlines. Meanwhile, tensions continue to mount as unions prepare for possible industrial action, adding another layer of uncertainty to an already volatile sector. With the deadline approaching, the pressure on policymakers and stakeholders intensifies. The coming weeks will likely determine whether the necessary interventions can be implemented in time to prevent a wave of airline failures. As the situation unfolds, the focus remains on ensuring stability and sustainability for one of Nigeria's key industries.