Over 50 Nigerian Airlines Have Failed, Carriers Can’t Survive Current Burden – Operator

The chairman of Air Peace Airlines, Allen Onyema, has raised concerns over the worsening operating environment for Nigerian airlines, revealing that more than 50 carriers have collapsed over the years because of multiple financial burdens, high borrowing costs and unfavourable government policies.

Speaking to LEADERSHIP, Onyema warned that the current operating conditions were pushing local airlines to the brink of extinction.

He argued that airlines were already struggling to survive under severe economic pressures and described the industry’s mortality rate as one of the highest in the world.

“Over 50 airlines have come and gone. The owners of these airlines succeeded in other businesses, yet they failed in the airline business. We need to do self-introspection and tell ourselves the truth about why airlines are failing in Nigeria,” Onyema said.

According to him, the International Air Transport Association (IATA) has repeatedly highlighted the challenges confronting Nigerian airlines, noting that the country remains one of the most difficult environments globally for airline operations.

“IATA has said it publicly at international conferences that it is very difficult for airlines to survive in Nigeria. The whole world is pitying Nigerian airlines, yet nobody seems ready to address the root causes of the problem,” he added.

The Air Peace chairman rejected attempts by aviation unions to threaten airlines over outstanding statutory charges, insisting that airlines have no dispute with labour unions but deal directly with the Nigeria Civil Aviation Authority (NCAA) on regulatory matters.

“The Nigerian airline industry has no problem with any union. We have no business with the unions. Whenever the NCAA calls us, we respond. If there are issues, we discuss them with the regulator, not with unions,” he said.

Onyema described the planned use of unions to enforce debt recovery as unprecedented, warning that it could set a dangerous precedent capable of disrupting aviation safety and damaging investor confidence.

“If they want to shut down the industry, they can go ahead. Airlines are already operating under excruciating circumstances. Intimidation will not solve the problem,” he stated.

He lamented that airlines were forced to borrow funds at interest rates of between 30 and 33 per cent while also bearing the costs of inadequate aviation infrastructure.

Citing bird strikes as an example, Onyema said Air Peace recorded 56 bird strikes within one year despite paying statutory charges meant to provide critical airport infrastructure.

“We pay for infrastructure that should reduce these incidents, yet the facilities are not adequately provided. When airlines lose revenue because of operational challenges, people still expect immediate payment of every obligation without considering the realities,” he said.

Onyema also faulted the current five per cent Ticket, Charter and Cargo Sales charge collection system, describing it as confusing and difficult to administer.

According to him, airlines are not opposed to paying statutory charges but believe the existing percentage-based model creates disputes over what components of ticket fares should be subject to the levy.

“There are too many ambiguities. Airlines do not want to owe anybody. We need a practical solution that works for everyone. If government adopts a fixed unit charge per passenger instead of the current percentage system, it could eliminate confusion and improve compliance,” he suggested.

He stressed that airlines should not be viewed as direct revenue-generating agencies for government, noting that they already contribute significantly to economic growth through taxes, employment and connectivity.

Onyema expressed confidence that President Bola Tinubu would not deliberately allow Nigerian airlines to collapse, saying the President had consistently demonstrated support for indigenous carriers.

“The President has been supportive of Nigerian airlines and will never allow them to go down. What is happening today does not reflect his intentions. Around the world, governments are supporting their airlines, while ours should be working with operators to ensure the industry’s survival,” he said.

He called on government and aviation stakeholders to engage in constructive dialogue to reform the industry’s funding and regulatory framework, warning that failure to address the challenges would continue to threaten the survival of indigenous airlines.