Airlines warn 54 charges, weak infrastructure threaten industry

Nigeria’s domestic airlines may struggle to achieve sustainable profitability unless the government reviews the 54 taxes, fees imposed across the aviation industry, while upgrading infrastructure to cope with rising competition, the Airline Operators of Nigeria (AON) has warned.

Vice Chairman of AON and Chief Executive Officer of Air Peace, Allen Onyema, said the multiple charges had become a major burden on operators and were undermining the competitiveness of Nigerian airlines in both domestic and international markets.

Onyema spoke at the 30th Annual Conference of the League of Airport and Aviation Correspondents (LAAC) in Lagos, themed “Towards a Sustainable Aviation Industry: Balancing Government Revenue Demands with Sector Growth.”

“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,” Onyema said.

He argued that the charges were among the factors making it difficult for airlines to remain commercially viable, adding that an earlier ECOWAS agreement seeking a 25 per cent reduction in aviation-related taxes across West Africa had yet to be implemented.

Onyema appealed for greater engagement between the Federal Government and airlines, saying policy decisions could significantly alter the fortunes of the industry when government listened to operators.

He cited the removal of the four per cent customs duty on aircraft-related imports as an example of how rapid government intervention could ease pressure on airlines.

According to him, the duty was removed after he raised concerns that it would further strain operators already facing severe financial pressures.

Onyema said direct engagement with President Bola Tinubu on the industry’s challenges could unlock further reforms that would benefit airlines, aviation agencies and passengers.

Meanwhile, Chairman of United Nigeria Airlines and AON spokesperson, Prof Obiora Okonkwo, raised concerns over the impact of bird strikes on airline operations.

Okonkwo disclosed that one of his airline’s Embraer E-190 aircraft had remained on the ground for 13 days following a bird strike, despite efforts to replace damaged components.

He said such incidents could impose substantial financial pressure on airlines that had financed aircraft purchases with expensive bank loans.

“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,” he said.

Okonkwo urged the Federal Airports Authority of Nigeria (FAAN) to do more to tackle bird activity around airports, warning that repeated strikes were affecting aircraft utilisation and airline revenue.

He also raised concerns over the treatment of airline staff during flight disruptions, citing an incident in which passengers reportedly refused to disembark from a United Nigeria flight that returned to Lagos because of adverse weather affecting the Kano runway.

He warned that poor protection of aviation workers during disruptions could discourage staff from reporting for duty during difficult operational situations.

Okonkwo further questioned whether airport infrastructure was keeping pace with the number of airline operators entering the market.

He noted that while obtaining an Airline Operating Certificate (AOC) previously took him two to three years, some operators were now obtaining certification within about six months.

He said growing competition was positive, but warned that additional airlines and aircraft would create pressure on already constrained airport infrastructure.

He cited a recent case in which a United Nigeria aircraft remained on the tarmac for about 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?” he asked.

Okonkwo also criticised public statements by some government officials that he said could damage the industry’s reputation and weaken investor confidence.

He called for officials appointed to communicate government aviation policies to receive adequate sector-specific training to ensure that public statements reflect the operational realities of the industry.

The concerns raised by the AON underscore the wider challenge facing Nigeria’s aviation sector: airlines are seeking lower operating costs and stronger infrastructure at a time when government is also under pressure to generate revenue and expand connectivity.

Without a better balance between aviation charges, infrastructure capacity, safety management and airline profitability, the industry risks attracting more operators into an ecosystem that may not yet have enough commercial and physical capacity to support sustainable growth