Nigeria’s leading airline, Air Peace, has revealed that repairing an aircraft damaged during ground handling by the Nigerian Aviation Handling Company will cost the carrier over $1 million, adding to a string of operational hurdles facing domestic airlines.
The airline’s Chairman and Chief Executive Officer, Allen Onyema, disclosed this in an interview on Arise TV on Sunday, citing frequent bird strikes, heavy taxation, and what he described as persistent and unfair scrutiny from government agencies as key challenges confronting Nigerian carriers.
Last Friday, The PUNCH reported that an Air Peace plane was damaged by a conveyor belt truck driver during ground handling, forcing the airline to ground the aircraft. Onyema said the affected aircraft was brand new, purchased for more than $85 million.
“One of our brand-new planes, bought for over $85m, was damaged by a ground handler. The thrust reverser of that engine is gone as I speak to you,” he said.
He noted that repair costs would exceed $1 million and that losses could sometimes be much higher. “The damage will cost us over $1m to fix. In some cases, losses run much higher. The engine alone costs about $18m,” Onyema added.
Onyema also recounted a prolonged Aircraft on Ground (AOG) incident involving one of Air Peace’s Boeing 777s, which remained grounded for three years due to engine unavailability.
“After three years, we finally got a new engine. But when the engine arrived, the ground handler pierced through the centre of it. This is sabotage,” he said.
Beyond ground handling issues, Onyema revealed that Air Peace experienced 49 bird-strike incidents across Nigeria between January and September, highlighting that even a single strike can ground an aircraft for weeks.
“Air Peace has had 49 bird strikes in Nigeria from January to September. One bird strike could cripple your aircraft for the next month. At that moment, there are no two ways about it. These bird strikes often lead to costly delays and serious disruptions in flight schedules,” he said.
Onyema also pushed back against allegations from government agencies, including the Federal Competition and Consumer Protection Commission, which have scrutinised airfare hikes and labelled them exploitative.
“We in the Airline Operators of Nigeria have come out to say that enough is enough. The bashing of Nigerian airlines doesn’t stop. It’s very painful when it’s coming from government agencies that should know better,” he stated.
Addressing claims of coordinated price-fixing, Onyema explained that ticket prices fluctuate based on booking time, demand, and seasonality.
“It is untrue that every fare is N500,000 or N400,000. You can still find tickets for N150,000. On the same flight, someone may have paid N125,000, while another paid N350,000. That’s how airline inventory works,” he said.
He added that domestic air travel in Nigeria remains affordable by international standards. “We still have tickets for as low as N115,000, which is less than $60. Nigerians are flying some of the cheapest domestic fares in the world,” Onyema noted.
On taxation, Onyema criticised what he called excessive and multiple levies on airlines, which significantly reduce profits.
“When you take a ticket of N350,000, only about N81,000 comes to the airline. The rest goes to taxes and charges. This level of multiple taxation is unsustainable,” he said.
Calling for urgent reforms, Onyema urged the government to allow capable airlines to manage their own ground operations to enhance safety and efficiency.
“If the legislation allows it, airlines that can afford it should be allowed to do their own ground handling. It will improve safety and operational efficiency,” he said.
Despite these challenges, Onyema affirmed Air Peace’s commitment to providing affordable and reliable air travel, adding, “As much as we try to provide quality service, the system is working against us.”