Air Peace Chairman Cautions Unions against Paralysing Aviation Industry

Chinedu Eze

The Chairman and CEO Air Peace Limited, Dr Allen Onyema, has cautioned aviation unions not to embark on action that will lead to prolonged disruption of the aviation industry.

Reacting to the threat of aviation unions to picket the operations of the airlines over debts owed NCAA, Onyema warned that mounting fiscal pressures, high borrowing rates, and illegal union interference are threatening the survival of domestic carriers, declaring that operators will not succumb to intimidation.

He wondered why after NCAA and the airlines had agreed on payment arrangement to liquidate the debts, which accumulated during the US-Iran war; when the cost of aviation soared from N900 per litre to N3, 500, the unions came up with the threat to picket the operations of the airlines.

Speaking during the book launch of  Muneer Bankole, Chairman of Med-View Airline, in Lagos yesterday, Onyema stated that domestic airlines operate under the harshest conditions globally and deal strictly with the Nigerian Civil Aviation Authority (NCAA), not labour unions.

He disclosed that Air Peace in one year had recorded 56 bird strikes which had severe damage on the airline’s fleet and cost huge amount of money in dollars to repair them, some of them involving engine replacements.

Onyema described the moves by trade unions to picket airlines or enforce debt recovery on behalf of government agencies as an “aberration” without global precedent, warning that any attempt to disrupt airline operations poses a direct threat to aviation safety.

“We don’t have any problem with the unions, neither do we have business with them. We have business with the NCAA, and we have been complying with what the NCAA directs us to do. If anybody thinks they can use unions to intimidate airlines in this country, they are wasting their time,” Onyema said.

Highlighting the severe economic headwinds facing the sector, the Air Peace chairman noted that Nigerian airlines borrow capital at exorbitant commercial rates of 30 to 33 percent, leaving operators with minimal breathing room to maintain fleet operations and service overheads.

He called for deep national introspection regarding why over 50 domestic airlines have collapsed over the past few decades, despite being founded by successful business proprietors who thrived in other sectors of the economy.

He recalled that the International Air Transport Association (IATA) has noted in international fora that Nigeria is one of the most difficult and expensive places in the world to operate an airline due to high operational costs, including excessive taxes, multiple charges and statutory levies; high insurance premium which is six times higher than global average: and high interest rate on loans, which is from 25%.

IATA also remarked that aside from Afghanistan which is facing extreme security and political turmoil, Nigeria remains one of the toughest environments to establish and sustain a viable airline business.

“Why don’t we do self-introspection to find out and tell ourselves the truth? Why are these airlines failing? The owners of these airlines succeeded in other businesses, but failed in the airline business. We don’t need IATA or any foreigner to remind us what we are suffering from,” he said, adding that international aviation bodies have repeatedly acknowledged the gruelling conditions under which Nigerian carriers operate.

Onyema also pointed to severe infrastructure deficits at domestic airports, disclosing that Air Peace alone recorded 56 bird strikes within a single year. 

He argued that while airlines pay statutory fees for airport infrastructure and services, facilities often fall short, causing extensive downtime, physical damage, and revenue losses.

“Part of the money we pay is for certain infrastructure to be provided. Now, if the infrastructure is not provided and the airlines keep losing revenue as a result, how do they pay vendors? Then union members will go and picket airlines, saying it is because airlines could not pay. I have never heard of such a thing anywhere in the world,” Onyema stated.

Addressing allegations that labour unions are being used by third parties to demean operators, Onyema asserted that airline proprietors are already pushed to the brink and will not hesitate to ground operations if unions attempt to enforce a shutdown.

“He who is on the ground fears no fall. The airlines are already on the ground. If they want to come and destroy the airlines, let them come and do it, and we all go home. We will unleash hundreds of thousands of staff to the public, and let all of them become jobless if that is the best way to solve the problem,” he added.

Onyema maintained that domestic operators remain patriotic and committed to safety, calling on regulatory authorities and international observers to monitor developments as airlines continue to engage directly with the Ministry of Aviation and Aerospace Development and the NCAA.