Addressing High Mortality Rate of Airlines

Chinedu Eze, a former Managing Director/CEO of Skyway Aviation Handling Company (SAHCOL) Plc and current Lead Consultant/CEO of The Onward Public Relations, has identified several key factors contributing to the high mortality rate among Nigerian airlines. Namely, high operational costs, excessive taxation, and lack of government support for the industry. Over the past four decades, more than 100 Nigerian airlines have gone bankrupt, with an average operational lifespan of just five to ten years.

The primary reason for short airline life spans is the astronomical cost of operations. Fuel costs account for 35-40% of airline revenue in Nigeria, with a Lagos-Abuja return flight requiring around 8,000 liters of fuel, costing approximately eight million naira before any salaries or maintenance bills are paid. Furthermore, exchange rate fluctuations exacerbate these costs, as Jet A-1 and aircraft leases are dollar-denominated while airlines earn revenues in naira.

Another significant issue is the high cost of maintenance checks, which occur every 18 months at a price ranging from $1 million to $3 million. As there are no heavy maintenance facilities in Nigeria, aircraft must be shipped abroad for maintenance, draining foreign exchange reserves and grounding capacity for weeks. Nigeria has recorded only two fatal accidents in the past decade, giving it the best aviation safety record in Africa, but this has not prevented the industry from collapsing over time.

Nigeria's aviation safety is overseen by ICAO-compliant standards, and the de-listing of Nigeria by the US Federal Aviation Administration (FAA) in September 2022 is attributed to commercial and diplomatic concerns rather than safety deficiencies. However, the Nigerian Civil Aviation Act 2023 contains clauses that aviation unions claim are anti-labor, including restrictions on the right to strike and picket.

The International Labour Organization (ILO) protects workers' right to freedom of association, ensuring safety standards are upheld and providing structured grievance resolution channels.

Regarding taxation, multiple charges from various government agencies, such as the Nigerian Airspace Management Agency (NAMA), Federal Airports Authority of Nigeria (FAAN), and Nigeria Meteorological Agency (NiMet), add to the operational burden for airlines. The Nigerian Civil Aviation Commission (NCAA) estimates that TSC and Cargo Sales Charge alone could generate N1.129 trillion in 2026.

The ICAO Document 8632 urges member states to eliminate taxes on international air transport and reinvest aviation-related revenue in the sector.

To address ramp congestion at Murtala Muhammed International Airport (MMIA) in Lagos, Agboarumi proposes introducing a slot system for both Lagos and Abuja airports, as well as implementing AI-powered ramp management to optimize aircraft parking, conflict prediction, and reduce blockages.