Allen Onyema, the founder and CEO of Air Peace, has raised alarms regarding the unsustainable financial burden caused by surging aviation fuel prices. Speaking on Arise TV, he highlighted that domestic carriers are increasingly forced to secure bank loans just to cover fuel expenses, while simultaneously reducing flight schedules to avoid total insolvency.
The price of Jet-A1 has surged by over 250 percent, creating a significantly harsher environment for Nigerian carriers compared to their international counterparts. Onyema pointed to middlemen within the supply chain as a primary factor driving these exorbitant costs. While global conflicts have disrupted markets everywhere, the domestic impact has been disproportionately severe.
To prevent further airline failures, Onyema has called upon President Bola Tinubu to intervene by establishing a review committee for existing aviation taxes and levies. Specifically, he identified the five percent Ticket Sales Charge mandated by the Nigerian Civil Aviation Authority as a financial strain that requires immediate re-evaluation.