Several carriers face imminent bankruptcy within a month, Onyema cautions

Vice Chairman of the Airline Operators of Nigeria, Allen Onyema, has issued a stark warning that numerous domestic airlines are on the brink of collapse within the next 30 days if the Federal Government fails to promptly address the challenges plaguing the aviation industry.

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Onyema, who also serves as Chairman of Air Peace, made this statement on Wednesday during the launch of the book, Pathways, Pilgrimage & Destiny: The Biography of Alhaji Muneer Bankole, in Lagos, as reported by Vanguard.

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The aviation industry is characterized by high capital requirements but low returns, according to Onyema, who emphasized that airlines are currently facing significant threats to their survival, making it a precarious time for the sector.

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Onyema cautioned that venturing into aviation is a daunting task, stating "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," and warned that unless drastic action is taken within 30 days, many airlines may cease to exist.

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The Air Peace chairman also urged aviation unions to reconsider their plans to picket airlines over the non-remittance of the five per cent Ticket Sales Charge, warning that if any airline is targeted, other domestic carriers will likely suspend operations in solidarity.

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Onyema argued that using unions to resolve debt issues is unheard of globally, saying "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."

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Onyema bemoaned the challenging operating environment faced by Nigerian airlines, noting that over 50 airlines have shut down over the years, with their owners often succeeding in other business ventures but failing in the airline industry.

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He emphasized that airlines are willing to contribute to government revenue but advocate for a more sustainable approach, stating "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."