Multiple Charges Threaten Airlines’ Survival – Allen Onyema

The chairman of Air Peace, Dr. Allen Onyema, has called on President Bola Tinubu to grant stakeholders in the aviation sector an audience, warning that multiple taxes and charges imposed on operators could threaten the survival of domestic airlines.

Speaking during an exclusive interview on Arise Television, Onyema argued that the Nigerian aviation industry remained one of the most difficult environments in which to operate, citing high borrowing costs, insurance premiums, aircraft acquisition expenses and regulatory charges.

According to him, many of the challenges facing local carriers stem from the cost of doing business rather than poor management.

Defending the cost of domestic air travel in Nigeria, Onyema maintained that Nigerian airlines offer some of the world’s cheapest airfares despite operating under difficult economic conditions.

He said comparisons between Nigerian carriers and foreign budget airlines often ignore the realities of aviation financing and operational costs.

“People talk about budget airlines abroad, but they forget that those airlines are heavily subsidised. In Nigeria, airlines are operating largely on their own,” he said.

The Air Peace boss argued that many foreign airlines acquire aircraft through low-interest leasing arrangements, while Nigerian operators often have to purchase aircraft outright and borrow funds at interest rates exceeding 30 per cent.

“What a Nigerian airline pays to insure one aircraft is what some foreign operators pay to insure five aircraft because of the risk perception attached to Nigeria,” he stated.

Onyema further claimed that some domestic routes still offer fares as low as ₦95,000, which he said translates to less than $60.

“Budget airlines abroad charge over $100 before taxes and still make passengers pay for luggage, seat selection and refreshments. Yet Nigerian passengers expect meals on a 45-minute flight,” he said.