BY OLAPEJU OLUBI
Air Peace Chairman and Chief Executive Officer, Dr Allen Onyema, has said President Bola Tinubu’s intervention in the crisis over the five per cent Ticket Sales Charge (TSC) will help save Nigeria’s struggling aviation industry.
Onyema, who spoke at the 30th annual conference of the League of Airport and Aviation Correspondents (LAAC) in Lagos yesterday, also said Nigeria’s reputation as one of the world’s most difficult places to run an airline could change if the President is properly briefed on the challenges facing local operators.
The conference was themed: “Towards a Sustainable Aviation Industry: Balancing Government Revenue Demands with Sector Growth.”
The Air Peace boss said the current system, under which airlines pay five per cent of the value of every ticket to the Nigeria Civil Aviation Authority (NCAA), is putting severe financial pressure on operators.
He called for the government to replace the percentage-based charge with a fixed amount attached to each ticket, saying this would make the system easier for airlines to manage and help prevent more carriers from collapsing.
Onyema, who is also Vice President of the Airline Operators of Nigeria (AON), said he was confident that President Tinubu would listen to the airlines if given the opportunity to explain their challenges.
He recalled how the President intervened in the four per cent Free on Board (FOB) levy introduced by the Nigeria Customs Service, after airlines complained that the charge would worsen their financial problems.
According to him, Customs Comptroller-General, Adewale Adeniyi, took the matter to the Presidency after hearing the airlines’ concerns, leading to the exemption of airlines from the levy within 24 hours.
He said: “One thing I must say is that I’m certain any day President Bola Ahmed Tinubu sees us, if they allow us to see him, because I know he will not mind to meet with us, that will be the day a new revolution in the airline industry in this country will occur because Mr. President abhors anything capable of affecting indigenous businesses that provide jobs for the people adversely.”
Onyema added: “I remember when we complained to the Comptroller General of Customs, Mr. Adewale Adeniyi of the debilitating effects of the newly introduced 4% FOB customs duty on airlines.
“He, Wale Adeniyi, took it up with the presidency same day. I was there in the Presidential Villa with the Customs boss, a fantastic man. This President acted swiftly and waived it for airlines within hours of being made to understand the would-be effects of such a charge on the viability of indigenous Nigerian airlines.”
He said the Customs chief had shown concern for the survival of the airlines rather than focusing only on government revenue.
“The Customs boss is a man who thinks about the overall wellbeing of the country, not just revenue. He asked me, ‘Is it going to hurt airlines?’ I said, ‘We are already bleeding. This 4% will hurt us.’ He said, ‘Okay, let’s go see the President.’
“This man helped to save Nigerian airlines. Within 24 hours, the 4% was removed. That is the power of listening. President Tinubu is a listening President,” Onyema said.
He urged the President to meet with airline operators over the TSC crisis, arguing that the government would also benefit from a stronger aviation industry.
“The problem is that the President has not heard from us on why his country was so described by IATA who equally compared Nigeria to Afghanistan,” he said.
“When he does see us, aviation will flourish in this country. It will benefit the agencies, the government, and the flying public.”
Onyema also recalled that he had promised to create 1,000 jobs for Nigerians after the President removed airlines from the four per cent FOB levy.
He said 78,000 Nigerians applied for the jobs, out of which 1,000 young Nigerians were eventually employed, in line with his promise.
The Air Peace chairman further warned that Nigerian airlines would continue to struggle if they remained burdened by multiple taxes and charges.
He said converting the five per cent TSC to a specific fixed amount on each ticket would benefit not only airlines but also the NCAA, other aviation agencies, the government and passengers in the long run.
Onyema also cited reports indicating that at least 62 commercial airlines have collapsed or defaulted in Nigeria since independence in 1960, with more than 22 shutting down in the past 24 years.
He blamed the high cost of operating in Nigeria for the poor survival rate of airlines, noting that the International Air Transport Association (IATA) had repeatedly identified Nigeria as one of the most expensive countries in the world for airline operations.
According to him, the high cost of running airlines has made it difficult for Nigerian carriers to compete and remain profitable, limiting the growth of the industry.
“They wondered how Nigerian airlines survive and even compared Nigeria to Afghanistan, which is not good for our country’s image,” Onyema added.
Olapeju is a journalist and aviation reporter.
