Airlines Seek Direct Meeting with Tinubu Over Rising Taxes and Charges Threatening Industry Survival

Domestic airline operators in Nigeria are pushing for a direct audience with President Bola Tinubu as concerns grow over taxes and regulatory charges they say are threatening the survival of the aviation industry. Leading the call is Air Peace Founder and Chief Executive Officer, Allen Onyema, who urged the Federal Government to engage directly with operators and gain a clearer understanding of the challenges facing airlines across the country.

Speaking during an interview on ARISE News, Onyema said airline operators appreciate the support received from the Tinubu administration but believe more needs to be done to address the financial pressures weighing heavily on the sector. According to him, the industry is battling mounting operational costs, while multiple taxes and charges continue to erode profitability and hinder growth.

The Air Peace boss warned that the collapse of any major airline could have far-reaching consequences for the economy. He noted that beyond the immediate loss of jobs, banks and other financial institutions with exposure to the aviation sector could suffer significant setbacks. Onyema stressed that widespread unemployment resulting from airline failures could also contribute to rising social and security challenges across the country.

One of the key issues highlighted by the airline executive is the five percent Passenger Service Charge imposed on airline tickets. Onyema argued that although regulators maintain that passengers bear the cost, the levy ultimately affects airlines by increasing the financial burden on their operations. He explained that the charge is deducted based on ticket prices, regardless of the slim profit margins airlines already operate with in a highly challenging business environment.

To address these concerns, Onyema called on President Tinubu to establish an Aviation Taxes and Charges Review Committee made up of government officials, industry experts, and airline operators. He said such a committee would provide an objective assessment of existing levies and help identify reforms needed to ensure the long-term sustainability of Nigeria’s aviation industry. According to him, a comprehensive review could prevent further airline failures and create a more competitive environment for operators while supporting economic growth.

source: punch