Dr. Allen Onyema, Chairman, AIr Peace Ltd
The Chairman of Air Peace Ltd, Dr. Allen Onyema, has cautioned against the implementation of the new tax regime in the aviation sector, warning that it would send Nigerian airlines out of business.
Onyema expressed his concerns at the 29th Conference of the League of Airports and Aviation Correspondents (LAAC), held in Lagos, lamenting the burden of sundry aviation taxes that are already weighing down airline operations.
According to him, the planned implementation of the new tax regime, which includes reintroducing customs duty on imported aircraft and spares, would be disastrous for the industry.
Onyema said: “The airline would die within 48 hours if implemented,” just as he emphasised that he is surprised that such a policy would be considered, given the already challenging operating environment for Nigerian airlines.
He also called on the government to cancel some existing charges, such as the 5% ticket sales charge collected by the Nigeria Civil Aviation Authority (NCAA).
He opined that the NCAA should collect the charge directly from passengers, rather than from airlines, to alleviate the financial burden on the industry.
The Air Peace boss however praised the current aviation minister, Festus Keyamo, for taking up the matter and noted that the present regime is doing a lot to support the aviation industry.
He highlighted the importance of modern airport infrastructure in supporting airline operations and the need for a hub airport in Nigeria to enable airlines to optimize their operations.
Onyema stressed that the need for the government to appreciate the challenges faced by Nigerian airlines and to support the industry.
He noted that despite the harsh operating environment, Air Peace has been able to form partnerships with other airlines, such as Emirates and Air Arabia, and has benefited from these partnerships.
The warning by the Air Peace boss highlights the need for the government to carefully consider the impact of the new tax regime on the aviation industry and to work with stakeholders to find a solution that supports the growth and development of the sector.
