The Vice Chairman of the Airline Operators of Nigeria (AON), Allen Onyema, has warned that several domestic airlines could shut down within the next 30 days if the Federal Government fails to urgently address the challenges facing the aviation sector.
Onyema, who also serves as the Chairman of Air Peace, made the remark during the launch of Pathways, Pilgrimage & Destiny: The Biography of Alhaji Muneer Bankole in Lagos.
He described the aviation industry as one that requires huge financial investment but offers limited returns, saying airlines are currently battling severe operational challenges that threaten their continued existence.
According to him, running an airline is far from easy because of the industry’s high operating costs and low profitability.
He warned that without immediate government intervention, many local carriers may be forced to cease operations within a month.
Onyema also urged aviation unions to reconsider their planned picketing of airlines over the alleged non remittance of the five percent Ticket Sales Charge.
He cautioned that if any airline is targeted, other domestic operators would suspend services in solidarity.
He argued that using labour unions to recover debts owed to government agencies is not a common practice internationally and called for more appropriate channels to resolve the dispute.
The Air Peace chairman further decried the difficult business environment confronting Nigerian airlines, noting that more than 50 carriers have folded over the years despite their owners’ success in other industries.
While affirming that airline operators are willing to support government revenue generation, Onyema maintained that airlines should not be subjected to direct taxation for that purpose.
Instead, he said the industry contributes to government earnings indirectly through its operations and economic activities.
