The Chief Executive Officer of Air Peace, Allen Onyema, has raised concerns over the worsening challenges facing Nigeria’s aviation industry, revealing that many airlines are now borrowing billions of naira just to purchase aviation fuel.
Speaking during a television interview, Onyema said the soaring cost of Jet A1 fuel has placed enormous pressure on local carriers, making it increasingly difficult for them to sustain operations.
According to him, the price of aviation fuel has risen sharply over the years, forcing airlines to rely heavily on bank loans to keep their aircraft in the air.
“No Nigerian airline is smiling now. We have borrowed billions just to buy fuel.”
The Air Peace boss explained that the cost of fueling a flight has increased several times over, significantly reducing profitability across the industry.
He also pointed to high lending rates in Nigeria, saying local airlines face interest rates far higher than what operators in many developed countries pay.
Onyema warned that many airlines may struggle to survive if urgent steps are not taken to address the sector’s challenges.
The aviation executive further criticised some of the charges imposed on airlines, arguing that they add to the financial burden operators already face.
He noted that Nigeria has witnessed the collapse of dozens of airlines over the years and warned that more carriers could face similar difficulties if conditions do not improve.
Despite the challenges, Onyema commended ongoing efforts by the Federal Government to improve aircraft leasing opportunities and support the aviation sector.
He also called for a review of aviation taxes and charges, urging authorities to work with industry stakeholders to create a more sustainable operating environment.
Source: Arise TV
