The worsening state of Nigeria’s aviation industry may consume the domestic airlines in the next 30 days unless the government takes decisive action to stem the tide.

Chairman of Air Peace, Allen Onyema, stated this yesterday in an interview with aviation journalists in Lagos.

According to Onyema, the industry is facing an existential crisis, which could only be compared to the circumstances that led to the collapse of the defunct national carrier, Nigerian Airways.

According to him, the operating environment has become so harsh that many indigenous carriers are struggling to remain in business despite their strategic role in the economy.

He stated this against the backdrop of labour unions who, in the last 21 days, threatened to picket their operations over the controversial five per cent ticket sales charge (TSC).

The unions insisted that the failure of the airlines to remit the five per cent TSC to the agencies through the Nigeria Civil Aviation Authority (NCAA) was affecting the financial performance of the organisations, while the welfare of their members was also negatively affected.

But Onyema insisted that the Nigerian operating environment was hostile to businesses, saying that the International Air Transport Association (IATA) had also confirmed this assertion.

Onyema lamented that many Nigerians wrongly assumed airlines make enormous profits without considering the huge cost of operations.

He explained that while airlines may generate millions of naira in revenue, operating expenses often far exceeded earnings, leaving operators with unsustainable losses.

He said: “We are facing a phase that poses existential threats to the continued operations of these airlines. Trust me, in the next 30 days, a lot of airlines in this country will go extinct if nothing is done.

“People say airlines made N10 million today, but they don’t ask how much it cost to make that N10 million. Sometimes you spend N30 million to generate N10 million. That is why airlines are struggling.”

Onyema warned that using labour unions to pressure airlines over financial disputes would set a dangerous precedent that can destabilise the industry.

He maintained that any disruption of airline operations would ultimately hurt passengers, employees and the Nigerian economy.

Besides, he described aviation as one of the most capital-intensive yet least rewarding industries in Nigeria and appealed to stakeholders to appreciate the financial burden borne by operators.

He noted that despite the enormous investments required to keep aircraft flying, operators continued to contend with high interest rates, multiple taxes, foreign exchange challenges and rising operating costs.

He decried that no fewer than 50 carriers had ceased operations in recent years, noting that most of the promoters of the airlines succeed in other businesses they ventured in.

Onyema appealed to the Federal government and industry stakeholders to urgently implement measures that would improve the operating environment, reduce the financial burden on airlines and safeguard the future of Nigeria’s domestic aviation industry.