Air Peace chairman warns more airlines may shut down despite Tinubu’s intervention

Chairman of Air Peace, Allen Onyema, has raised fresh concerns over the survival of Nigerian airlines, warning that more operators could shut down within days despite a recent Federal Government intervention.

Speaking on News at 10, a programme on TVC News, on Friday, Mr Onyema commended President Bola Ahmed Tinubu for approving a 30 per cent reprieve on outstanding debts owed by airlines to federal aviation agencies.

“We appreciate Mr President for being magnanimous enough to offer us a 30 per cent reprieve… That’s a very welcome development,” he said, adding that the current administration has shown more support to domestic airlines than previous governments.

However, he stressed that the industry’s most pressing challenge remains the soaring cost of aviation fuel, which he blamed on market conditions rather than government policy.

Stay Ahead with Premium Times

Add as a preferred source on Google

“For the avoidance of doubt, I want Nigerians to know that the airlines are not after the government. Government is not our problem,” he noted.

Mr Onyema explained that while global crude oil prices have risen moderately due to geopolitical tensions, including developments involving Iran, aviation fuel prices in Nigeria have increased far more sharply.

“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 increase—estimated at over 250 per cent—has placed severe pressure on airline operations.

According to him, airlines are now operating largely to offset fuel costs while also contending with high borrowing rates.

“All the airlines in Nigeria have been flying to pay fuel marketers only, and you don’t want to compromise safety,” he said.

The Air Peace chairman warned that the situation could worsen if urgent steps are not taken, revealing that at least two more airlines risk shutting down soon.

“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 said.

Government intervention

PREMIUM TIMES had earlier reported that President Bola Tinubu approved a 30 per cent reduction in debts owed by domestic airlines to federal aviation agencies, in a move aimed at easing mounting financial pressure on operators grappling with rising fuel costs.

ALSO READ: Tinubu approves 30% discount on airlines’ debt to aviation agencies

The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed the approval on Thursday after receiving communication from the President through his Chief of Staff, Femi Gbajabiamila.

The intervention means local carriers will pay less on accumulated obligations, including parking fees to the Federal Airports Authority of Nigeria, navigational charges to the Nigerian Airspace Management Agency, and other statutory levies.

Despite the relief, industry operators say the rising cost and limited availability of Jet A1 fuel remain a major threat to airline sustainability.