Multiple Charges Remain Domestic Operators’ Nightmare – United Nigeria Airlines Founder

…Says Forex Policy, Cape Town Convention Have Positively Impacted Operations

The Founder of United Nigeria Airlines (UNA), Professor Obiora Okonkwo, has decried the multiple charges imposed on domestic airline operators by various government agencies, describing them as a major challenge that continues to stifle growth in Nigeria’s aviation sector.

Speaking on Wednesday at an event in Abuja to commemorate the airline’s fourth anniversary, Okonkwo, however, acknowledged that some recent government policies, particularly the foreign exchange (forex) reforms and the domestication of the Cape Town Convention, have provided significant relief for airline operators.

Okonkwo lauded the forex policy introduced by President Bola Ahmed Tinubu’s administration, stating that it has immensely benefited the aviation industry.

He recalled the difficulties airlines previously faced in converting naira to foreign currency to meet financial obligations, a challenge that led to contract losses and strained relationships with vendors.

“I think that the forex policy of the Tinubu administration has been of tremendous advantage to the airline industry. Before he came into power, it was a nightmare for us to convert naira to foreign currencies to pay our obligations.

“We lost a whole lot of contracts and vendors because funds were stuck in naira, and we couldn’t access forex. Now, it is a different story,” Okonkwo stated.

He further noted that the clearance of nearly a billion US dollars in trapped airline funds has restored Nigeria’s credibility in the global aviation sector.

“It has opened up a new window for better relationships. Our reputation and integrity in the international aviation industry are better now. So, we are happy with it,” he added.

Similarly, Okonkwo highlighted the positive impact of the domestication of the Cape Town Convention, noting that it has significantly reduced operational costs for airlines.

Despite these positive developments, Okonkwo lamented that domestic airline operators still face crippling financial burdens due to multiple levies imposed by government agencies.

He revealed that airlines pay charges to about 20 different agencies, including the Nigerian Civil Aviation Authority (NCAA), the Nigerian Airspace Management Agency (NAMA), and the Federal Airports Authority of Nigeria (FAAN), leaving operators with minimal profit margins.

“They need to cut down on the charges the operators pay different agencies of government. The margin of this business is very low, and if you have to meet all those charges to NCAA, NAMA, FAAN, you are left with nothing. It’s affecting us. We need to have more money to be able to develop, expand, and improve the working environment for our staff,” he said.

He further called on the government to create a programme that would enable airlines to access loans at a single-digit interest rate, arguing that this would boost growth and competitiveness in the industry.

“Government must realise that access to credit is very important to us operators because we are competing with airlines that have access to loans at 3 to 5 percent interest rates. Aviation is a global village, and we can’t compete under these conditions,” he stressed.

Additionally, Okonkwo expressed concern over the behaviour of some airline passengers, whom he accused of being unruly and excessively critical of flight delays.

He noted that delays are common worldwide but stressed the need for greater public awareness regarding passenger rights and airline obligations.

“We overbend ourselves as operators to please passengers, doing beyond what local flight operators do in other parts of the world. Yet, their attitudes and behaviours sometimes put enormous stress on us. In some cases, passengers have assaulted staff and destroyed airport equipment,” he lamented.

Speaking on the airline’s achievements, UNA’s Executive Director and Chief Operating Officer, Mazi Osita Okonkwo, revealed that the airline has expanded its network to include Benin, Kano, and Sokoto.

He also disclosed that the airline recently renewed its operational certificate and is in the advanced stages of launching regional and international flights.

In a significant industry milestone, UNA engineers successfully changed an aircraft’s landing and nose gears without foreign assistance – a feat rarely witnessed in Nigeria’s aviation sector.

“Our fleet expansion drive has resulted in the acquisition of new aircraft, and we plan to operate flights to 25 destinations by 2026,” Mazi Osita said.