Chief Executive Officer of Air Peace, Allen Onyema, has warned that Nigeria’s aviation industry is facing a worsening crisis, saying local airlines are effectively “dead on arrival” due to soaring operating costs, high fuel prices, multiple taxes, and expensive borrowing rates.

Speaking during an interview on Arise TV, Onyema said the aviation sector is under pressure globally, citing geopolitical tensions and international conflicts as factors driving up operational costs across the industry.

“What is happening to Nigerian aviation is global. It’s a global crisis in the aviation industry. It’s not just limited to Nigeria alone,” he said.

According to him, several international carriers have reduced operations and cancelled flights as rising costs continue to affect the sector. However, he argued that Nigerian airlines face far greater challenges than their counterparts elsewhere.

Onyema disclosed that aviation fuel prices have risen by more than 250 per cent in recent years, noting that fuel costs climbed from about ₦900 per litre to as much as ₦3,300 per litre at one point.

“At a time, aviation fuel rose from about N900 per litre to about N3,300. This is what the Nigerian airline is supposed to grapple with,” he said.

He commended domestic operators for remaining in business despite the difficult environment, revealing that airlines now spend between ₦12 million and ₦13 million on fuel for flights that previously required around ₦3 million.

“You just fly for the fuel vendors. Fuel used to cost about N3 million for a flight. Now it’s about N12 million or N13 million for the same flight,” he stated.

The Air Peace boss also identified access to affordable financing as a major challenge, noting that while airlines in many developed countries secure loans at interest rates of three to four per cent, Nigerian operators contend with rates between 29 and 33 per cent.

“The Nigerian airline is actually dead on arrival. We have all cut down the number of flights we do in order to save costs,” he said.

Onyema dismissed claims that the high cost of aviation fuel was caused by Dangote Refinery, arguing that multiple intermediaries within the supply chain are responsible for pushing up prices.

“Dangote’s fuel, through MRS, still remains the cheapest. But it’s the chain of middlemen before it gets to the airline that pushes up the cost,” he said.

He described the refinery as a strategic national asset that has helped cushion Nigeria from global fuel market shocks.

The aviation executive further argued that aviation should be treated as a strategic economic sector rather than merely a source of government revenue.

“There is no UAE without Etihad and Emirates. Every country supports its airlines because they energise the economy,” he said.

Onyema lamented that more than 70 airlines have collapsed in Nigeria over the years, describing the country as one of the nations with the highest airline failure rates globally.

He identified the five per cent Ticket Sales Charge (TSC) as one of the major burdens on operators and called on President Bola Ahmed Tinubu to establish an aviation taxes and charges review committee.

“We want Mr. President to set up an aviation taxes and charges review committee. Let technocrats, government officials and airline operators sit down and review these charges that airlines have been crying about for years,” he said.

While acknowledging government efforts to support the sector, Onyema warned that more intervention is needed to prevent further airline failures, stressing that the collapse of airlines would lead to significant job losses and expose banks with aviation-sector investments to financial risks.

He also defended Air Peace over recent flight disruptions, including complaints from passengers stranded at Gatwick Airport in London, insisting that safety remains the airline’s highest priority.

According to him, the disruption was caused by a bird strike, while affected passengers were accommodated in a five-star hotel.

“When it comes to safety, Air Peace takes no prisoners. No amount of intimidation or name-calling will make Air Peace take to the skies when we know it is one per cent unsafe,” he said.

Onyema concluded by urging the government to review industry charges, improve access to affordable financing, and provide stronger support for domestic airlines.

“Time has come for government to listen. If those charges are not reviewed, airlines will continue to crumble in this country,” he warned.