Chairman and Chief Executive Officer of Air Peace, Allen Onyema, has raised alarm that Nigeria’s aviation sector is being pushed to the edge of collapse by a 5% Ticket Sales Charge (TSC) and a barrage of multiple taxes, even as global pressures from the Middle East crisis intensify.
Speaking on Arise TV’s The Morning Show, Onyema described the operating environment for Nigerian airlines as unsustainable, citing spiralling costs, prohibitive borrowing rates, and mounting external shocks.
“We want Mr. President to set up an Aviation Taxes and Charges Review Committee. Aviation itself does not give you 5% gain, yet TSC takes 5% of ticket revenue”, he said.
According to him, the ongoing tensions involving Israel, Iran and the United States have driven up global jet fuel prices, forcing major international carriers to cut thousands of flights.
Onyema noted a stark disparity in financing conditions, revealing that while foreign airlines access loans at between 3% and 4% interest, Nigerian operators face rates as high as 33%
“No Nigerian airline is smiling now. We’ve borrowed billions just to buy fuel and keep flying”, he said, adding that many carriers have been forced to cut flight frequencies just to stay afloat.
The Air Peace boss, who also serves as Vice President of the Airline Operators of Nigeria (AON), commended the Dangote Refinery for easing fuel supply challenges, describing its aviation fuel as the most affordable currently available. However, he blamed intermediaries in the distribution chain for inflating prices before the product reaches airlines.
Onyema welcomed recent remarks by the International Air Transport Association (IATA), which described Nigeria as one of the most challenging environments for airline operations, noting that operators have long complained about more than 50 taxes and charges without corresponding government support.
“Over 70 airlines have come and gone in this country. Nigeria has the highest mortality rate of airlines worldwide”, he said.
He also acknowledged efforts by President Bola Tinubu and Aviation Minister Festus Keyamo to establish a national aircraft leasing company under the Cape Town Convention framework but stressed that urgent tax reforms remain critical to the industry’s survival.
Addressing recent disruptions involving Air Peace at London Gatwick Airport, Onyema explained that a bird strike caused the delay and maintained that affected passengers were accommodated at a nearby hotel.
“When it comes to safety, Air Peace takes no chances. We will never fly if there is even 1% doubt about safety”, he said.
The airline executive further decried what he described as unfair criticism and cyberbullying of Nigerian carriers, warning that Air Peace would take legal action against individuals spreading false information.
“We welcome constructive criticism, but you cannot peddle falsehoods against Air Peace and go scot-free any longer”, he added.
On persistent flight delays, Onyema argued that airlines are rarely at fault, attributing most disruptions to factors such as weather, infrastructure limitations, and bird strikes.
“About 97% of delays and cancellations are not caused by airlines. They are force majeure issues, and safety will always come first”, he said.