The Chairman of Air Peace, Allen Onyema, has raised fresh concerns over the survival of Nigerian airlines, warning that more operators could shut down by Monday despite a recent Federal Government intervention. Speaking on TVC News’ “News at 10” on Friday, Onyema commended President Bola Ahmed Tinubu for approving a……
The Chairman of Air Peace, Allen Onyema, has raised fresh concerns over the survival of Nigerian airlines, warning that more operators could shut down by Monday despite a recent Federal Government intervention.
Speaking on TVC News’ “News at 10” on Friday, Onyema commended President Bola Ahmed Tinubu for approving a 30 per cent reprieve on outstanding debts owed by airlines to federal aviation agencies in the aviation sector, describing the move as timely and supportive.
“We appreciate Mr President for being magnanimous enough to offer us a 30% reprieve… That’s a very welcome development,” he said, adding that the current administration has shown more support to domestic airlines than any previous government since independence.
READ ALSO: Tinubu Grants 30% Debt Relief to Domestic Airlines
However, the airline boss stressed that the industry’s most pressing challenge remains the soaring cost of aviation fuel, which he blamed on marketers rather than government policies.
“For the avoidance of doubt, I want Nigerians to know that the airlines are not after the government. Government is not our problem,” Onyema stated.
He explained that while global crude oil prices have risen by about 20 to 30 per cent due to geopolitical tensions, including the conflict involving Iran, aviation fuel prices in Nigeria have surged disproportionately.
“Before the crisis, we were buying fuel at about N900 per litre. Now it has risen to between N2,700 and N2,900, with some selling as high as N3,300 to N3,500,” he said, noting that the sharp increase estimated at over 250 per cent has placed unbearable pressure on operators.
According to him, airlines are currently operating largely to offset fuel costs while contending with high-interest rates of up to 35 per cent, a situation he described as unsustainable.
“All the airlines in Nigeria have been flying to pay fuel marketers only, and you don’t want to compromise safety,” he said.
Onyema warned that the crisis could soon worsen if urgent steps are not taken, revealing that at least two more airlines risk shutting down by Monday.
“We want to meet with Mr. President because as I speak to you now about two more airlines want to go down by Monday. It is very urgent that we meet with Mr. President so that he will hear from us. He’s our president and he’s a very listening president. That is not that of a good news if we have airlines folding up again,” he added.
TVC News Online, had yesterday reported that President Bola Tinubu approved a 30 percent reduction in debts owed by domestic airlines to federal aviation agencies, in a move aimed at easing mounting financial pressure on operators grappling with soaring fuel costs.
The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed the approval on Thursday night, shortly after receiving communication from the President’s Chief of Staff, Femi Gbajabiamila.
“This evening, Mr. president has definitely approved a 30 percent discount,” the minister told journalists.
The intervention means local carriers will pay significantly less on accumulated obligations, including parking fees to the Federal Airports Authority of Nigeria (FAAN), navigational charges to the Nigerian Airspace Management Agency (NAMA), and other statutory levies.