Concerns Surrounding the Future of Nigerian Airlines
Air Peace Chairman Allen Onyema has raised urgent concerns regarding the viability of Nigerian airlines, cautioning that further shutdowns could occur within days, despite recent federal government measures aimed at stabilizing the industry.
In an interview with TVC News on Friday, Onyema commended President Bola Ahmed Tinubu for instituting a 30% moratorium on outstanding debts owed by airlines to the Federal Aviation Authority. This move is designed to provide temporary financial relief.
We appreciate the President’s generosity in offering this moratorium, which we see as a welcome development, Onyema remarked, acknowledging that the current government has shown more support for domestic airlines than its predecessors.
Despite this positive development, Onyema emphasized that the sector’s most significant challenge persists—the escalating prices of aviation fuel. He attributes these increases to prevailing market conditions, rather than government decisions.
“To clarify, airlines are not targeting the government; it is not the source of our challenges,” he stated. Instead, he highlighted how global oil price fluctuations, exacerbated by geopolitical tensions such as those involving Iran, have led to a sharper rise in aviation fuel prices within Nigeria.
Before the current crisis, airlines were purchasing fuel at approximately N900 per liter. Now, prices have surged to between N2,700 and N2,900, with some distributors charging as much as N3,300 to N3,500. This staggering increase, exceeding 250%, has exerted tremendous pressure on airline operations.
Currently, many Nigerian airlines are functioning primarily to cover their escalating fuel expenses while contending with high borrowing rates. “Airlines are operating just to pay their fuel suppliers, and we refuse to compromise on safety,” he emphasized. Onyema warns that the situation could deteriorate further without immediate intervention, disclosing that at least two additional airlines are on the brink of suspension.
We are seeking a meeting with the President, as two more airlines are poised to halt operations by Monday. It is critical that we present our concerns to him, he added.
Government Measures to Support the Aviation Sector
Premium Times recently reported that President Bola Tinubu has approved a 30% reduction in debt owed by domestic airlines to the Federal Aviation Authority. This initiative aims to alleviate the financial strain faced by airlines grappling with soaring fuel expenses.
Further Details on the Intervention
Minister of Aviation and Aerospace Development Festus Keyamo announced this approval on Thursday, following communication from the President through his Chief of Staff, Femi Gbajabiamila. The initiative will allow local airlines to make reduced payments on accumulated dues, including parking charges to the Federal Airports Authority of Nigeria and navigation charges to the Nigerian Airspace Authority.
Despite this relief, industry experts have warned that rising operational costs and the limited availability of Jet A1 fuel remain significant threats to the long-term sustainability of Nigeria’s airline industry.
