Airlines will collapse unless FG reviews 54 industry charges, operators warn

Operators of airlines in Nigeria under the aegis of Airline Operators of Nigeria (AON) on Thursday asked the federal government to review 54 different charges airlines currently pay if domestic airlines are to survive in the country.

They affirmed that the various charges are among the highest across the globe thus constituting barriers to the growth and sustainability of airline businesses in Nigeria.

Vice Chairman of the AON, Mr. Allen Onyema who spoke as Keynote Speaker at the 30th annual conference of the League of Airport and Aviation Correspondents (LAAC) in Lagos, said “the charges have become a significant barrier to the profitability and competitiveness of Nigerian carriers both domestically and internationally.”

Speaking on the theme “Towards a Sustainable Aviation Industry: Balancing government revenue demands with sector growth “, Mr. Onyema who is also the Chairman and Chief Executive Officer of Air Peace affirmed that “One thing I want to mention is that there are many charges. If I were to list them, there are about 54 that airlines pay. Even for international flights, it’s the same. I remember when ECOWAS came together.” 

He said that “Even our president signed a treaty on behalf of ECOWAS calling for a 25% reduction in taxes across West Africa. That has not been implemented anywhere yet. But one thing I must say is that I’m certain any day President Bola Tinubu sees us, if they allow us to see him, because I know he wants to meet with us, that will be the day there will be a revolution in the airline industry in this country. Because that man supports indigenous businesses. He does.”

“I remember a few occasions when I visited him regarding the 4% FOB customs duty. He acted within 24 hours. I happened to be at the villa that day, not to see him, and I ran into the controller general of customs, a fantastic man. These are people who think about the country, not just revenue. He said to me, “It’s going to hurt airlines.” I said, “We are already bleeding. This 4% will hurt us.” He said, “Okay, let’s go see the president.” This man helped me. Within 24 hours, the 4% was removed. That is the power of listening.

“The problem is that the president has not seen us. He has too many things to grapple with. When he does see us, aviation will flourish in this country. It will benefit the agencies, the government, and the flying public.”

Also speaking at the event, the spokesperson of the AON and chairman of United Nigeria Airlines, Prof. Obiora Okonkwo, disclosed how bird strikes are inflicting severe damage on airline operations and profitability. 

He called on the Federal Airport Authority of Nigeria (FAAN) to intensify efforts aimed at adequately mitigating the problem and noted the financial burden of such incidents on operators who have taken bank loans to acquire aircraft.

He said: “Today, I have an aircraft, E-190. This is the 13th day of AOG (aircraft on ground) due to bird strike. We bought new blades and fixed them. . Imagine having borrowed 30% of funds from the bank to acquire these beautiful aircraft, only to wake up and face a bird strike. It happens continuously within one month. It is very painful.”

Okonkwo also spoke on unruly passengers narrating an incident where passengers refused to disembark from a United Nigeria flight that was forced to return to Lagos due to heavy rain affecting Kano’s runway. He said passengers refused to leave the aircraft and spent the night on the ramp because they did not want the plane to go anywhere except back to Kano.

“If we cannot protect airline workers, who are somebody’s wives, children, sisters, and brothers, then when there is any flight disruption, what happens? Staff disappear because nobody wants to be harmed,” he said.

Another concern raised by Okonkwo is the speed in which Airline Operating Certificates (AOCs) are issued, warning that the airport infrastructure is insufficient to handle the growing number of operators.

Okonkwo noted that while it took him two to three years to obtain his AOC, some operators are now receiving theirs within six months.

He expressed concern about airport congestion, citing a recent incident where a United Nigeria flight sat on the tarmac for 30 minutes because passengers could not disembark due to ramp congestion. “More AOCs are being issued, and perhaps five more will be issued by year’s end. More competition is fine, no problem. But where is the infrastructure to accommodate these additional aircraft? If these new operators acquire aircraft quickly, the ground infrastructure is already full. I wonder if we have enough airspace,” he said.