Air Peace Founder and Cha9rman/CEO, Allen Onyema, says Nigerian airlines are seeking a meeting with President Bola Tinubu to discuss the challenges facing the aviation sector, particularly multiple taxes, charges, and rising operating costs that continue to threaten the survival of domestic carriers.
Speaking during an interview with Ojy Okpe on ARISE NEWS, Onyema said the aviation industry has been severely impacted by rising fuel costs, high-interest loans, and regulatory charges, stressing that airlines need direct engagement with the president to address issues affecting their operations.
According to him, the challenges confronting Nigerian airlines are part of a broader global aviation crisis triggered by geopolitical tensions, particularly the conflict involving the United States, Israel, and Iran, which has driven up the cost of aviation fuel worldwide.
“What has happened to Nigerian aviation is global. It’s a global crisis in the aviation industry. It’s not just limited to Nigeria alone. Since the advent of the US-Israel-Iran war, the aviation world has been adversely affected,” he said.
He noted that while airlines around the world have been affected by rising fuel prices, Nigerian operators face a more severe situation due to the sharp increase in aviation fuel costs and expensive borrowing conditions.
“No Nigerian airline is smiling now. We’ve all borrowed and borrowed, and thanks to the banks that believe in the aviation industry, we’ve all borrowed and borrowed billions just to buy fuel and fly,” Onyema said.
He also praised businessman Aliko Dangote for establishing the Dangote Refinery, describing it as a major intervention for Nigeria’s economy and energy security.
“I’m a huge fan of that man, Aliko Dangote. I’m a huge fan of his because, like I’ve always said, we should look beyond the man, Aliko Dangote,” he said.
Onyema, however, argued that the major challenge affecting aviation fuel pricing is the distribution chain rather than the refinery itself.
“Dangote’s fuel still remains, through MRS, still remains the cheapest. But it’s the chain, the middle man in between,” he stated.
Commenting on concerns raised by international aviation stakeholders about the cost of operating airlines in Nigeria, Onyema said local carriers have repeatedly appealed to successive governments for reforms.
“Over 70 airlines have come and gone in this country. Nigeria has the highest mortality rate of airlines worldwide. That’s not complimentary. We keep on complaining. Nobody is listening to us,” he said.
While acknowledging ongoing reforms by the federal government, Onyema said more needs to be done to ease the burden on operators.
“Thanks to this government that at least has come in to do this Cape Town thing. The government is trying to establish a leasing company now. Thanks to President Tinubu and Festus Keyamo. The man is working around the clock to make that happen,” he said.
He revealed that airline operators are seeking a direct audience with the president to present their concerns and recommendations.
“We are seeking an appointment with the president. And we think the president should see us and hear from us. We are patriotic citizens of this country. We appreciate what this government has done for us. But they need to listen more to us and get to know the pains, the pain points that are hitting these airlines,” Onyema said.
Onyema specifically criticised the five per cent Ticket Sales Charge (TSC) imposed on airlines, arguing that operators bear the burden of the levy despite claims by the Nigerian Civil Aviation Authority (NCAA) that it is paid by passengers.
“The truth we have to tell the president is that the 5 percent passenger TSC, they charge the airlines. And they will tell you that, it’s the passengers that pay it. We refuse to accept,” he said.
“If I charge 100,000, NCAA will take 5 percent. If I charge 200,000, NCAA will take 5 percent of 200,000. I didn’t set up business with you. Because aviation itself does not give you 5 percent gain. But they tell you, it’s the passengers that pay it.”
The Air Peace CEO called for the establishment of an aviation taxes and charges review committee to assess levies imposed on airlines, arguing that some of the charges have contributed to the collapse of several carriers over the years.
“We want Mr. President to set up aviation taxes and charges review committee. It is very important, so that it doesn’t look as if we are trying to fool the government,” he said.
Onyema warned that the collapse of airlines could have wider economic consequences, including job losses and financial exposure for lending institutions.
“If any airline goes down, banks will take a hit. And it creates massive job unemployment. A lot of people will be thrown into the unemployment market,” he said.
Ademide Adebayo
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