Onyema Warns Nigerian Airlines Face Collapse Without Urgent Government Action

Author: Gist Correspondent

Vice Chairman of the Airline Operators of Nigeria (AON), Allen Onyema, has warned that several domestic airlines could cease operations within the next 30 days if the Federal Government fails to urgently address the mounting challenges confronting the aviation sector.

Onyema, who is also the Chairman of Air Peace, gave the warning on Wednesday during the launch of the book Pathways, Pilgrimage & Destiny: The Biography of Alhaji Muneer Bankole in Lagos.

He described the aviation industry as highly capital-intensive with limited financial returns, stressing that airline operators are currently battling severe economic pressures that threaten their survival.

According to him, the industry has reached a critical stage where immediate intervention is needed to prevent the collapse of many local carriers.

"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 has existential threats. Except something drastic is done very quickly within the next 30 days, a lot of airlines might go extinct," Onyema said.

The Air Peace chairman also cautioned aviation unions against plans to picket airlines over the alleged non-remittance of the five per cent Ticket Sales Charge, warning that such action could trigger an industry-wide shutdown.

He said domestic airlines would stand together in solidarity if any operator was targeted, arguing that labour unions should not be used by government agencies to resolve debt-related issues.

Onyema lamented the difficult operating environment facing airline operators, noting that more than 50 Nigerian airlines have folded over the years despite the business success of many of their owners in other sectors.

While reaffirming the industry's willingness to support government revenue generation, he maintained that airlines should not be subjected to policies capable of crippling their operations.

He urged the Federal Government to adopt more sustainable measures to support the aviation industry, warning that the continued survival of domestic airlines is vital to Nigeria's economy, connectivity and employment generation.