By Fiscal Posts
Chairman of Air Peace, Allen Onyema, has decried the crippling cost of running airlines in Nigeria, accusing the global aviation industry of unfairly stigmatizing the country and driving up operational expenses for local carriers.
Speaking in Lagos at a lecture organised by the League of Airport and Aviation Correspondents (LAAC) with the theme “Aviation Financing in Nigeria”, Onyema said the perception of Nigeria as “unsafe” has resulted in exorbitant insurance premiums for the nation’s airlines.
“My airline pays huge premiums to insure just one aircraft, whereas in other parts of the world, what we spend on one aircraft could insure seven,” Onyema lamented.
He described the situation as an “unholy alliance” against Nigerian airlines and urged the Federal Government to take urgent diplomatic and policy steps to change the country’s image internationally.
Onyema warned that the astronomically high cost of airline operations in Nigeria could destroy an airline “within 48 hours” if unchecked. He cited multiple cost drivers, including the 5% ticket sales charge paid to the Nigerian Civil Aviation Authority (NCAA) and the customs duties on imported aircraft and spare parts, describing them as “profit killers” for the industry.
The Air Peace boss also appealed for the provision of adequate and functional aviation infrastructure, vowing that with the right support, “Ethiopia and the rest of the foreign airlines will be a thing of the past.”
On the financing challenges facing Nigerian carriers, aviation consultant Chris Aligbe stressed the need for local airlines to form alliances to expand their economies of scale.
“For financing, airlines should introspect and identify where they are going wrong. If you go alone, you die alone,” Aligbe warned, while also advocating for the creation of a federation flag carrier.
However, Onyema disagreed with the idea of floating a new national carrier, calling it a “moribund idea.” He insisted that Air Peace is already bigger than some African national carriers and argued that Nigerian airlines are performing better than many of their continental counterparts despite a far harsher operating environment.