Aviation Sector Faces Survival Threat As Onyema Warns Airlines May Shut Down

The 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 challenges confronting the aviation industry.

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

He described Nigeria’s aviation sector as highly capital-intensive with low returns, saying airlines are currently battling severe operational and financial pressures that threaten their continued existence.

According to him, the industry is facing an unprecedented crisis that requires immediate government intervention to prevent the collapse of more domestic carriers.

Onyema also cautioned aviation unions against their planned picketing of airlines over the alleged non-remittance of the five per cent Ticket Sales Charge (TSC), warning that such action could disrupt the entire domestic aviation sector.

He stated that if any airline is picketed, other local carriers would suspend operations in solidarity, arguing that labour unions should not be used by government agencies to resolve debt-related disputes.

The Air Peace chairman lamented that more than 50 Nigerian airlines have shut down over the years despite many of their owners having successful records in other sectors before venturing into aviation.

While reiterating that airlines are willing to support government revenue generation, Onyema maintained that the current approach is unsustainable. He noted that airlines globally are not directly taxed for revenue generation but contribute indirectly through their operations.

He called for urgent reforms and supportive policies to ensure the sustainability of Nigeria’s aviation industry and prevent further airline failures.