The Airline Operators of Nigeria (AON) has raised alarm over what it described as worsening financial pressure in the aviation sector, revealing that domestic airlines have lost over N150bn within two months amid rising operational challenges and unresolved industry debts.
A member of the AON Board of Trustees, Roland Iyayi, disclosed this while speaking on the state of the industry, warning that airlines are nearing a critical breaking point as financial strain deepens.
He said the losses highlight the fragile condition of local carriers, stressing that the survival of aviation businesses is now at risk without urgent intervention.
Iyayi also noted that the ongoing dispute between airlines and ground handling companies over unpaid debts could further destabilise the sector. He argued that both sides are interdependent and warned that any collapse of airline operations would have ripple effects across the entire aviation value chain.
According to him, airlines are already struggling to stay afloat and cannot be pressured into immediate debt repayment under current economic conditions, adding that “nobody can threaten anybody any longer” given the severity of the crisis.
He further cautioned that if airlines are forced out of operation, ground handling companies and other aviation service providers would also lose their businesses.
On the other hand, the Aviation Ground Handling Association of Nigeria (AGHAN) has maintained that it may take further action if outstanding debts—estimated at about N9bn—are not settled by airlines.
The association’s chairman, Olaniyi Adigun, said members were consulting and preparing their next steps in line with labour laws, including a possible escalation after a seven-day ultimatum issued to airlines.
He explained that although some airlines have begun partial payments, the majority have not met their obligations, warning that service withdrawal remains a possibility if the situation persists.
Adigun added that the association would soon address the media after its internal meeting, insisting that its actions would follow due process.
Meanwhile, another AON member, who spoke anonymously, urged restraint, warning that escalating the dispute at a time of economic difficulty could worsen Nigeria’s already fragile aviation environment.
The source stressed that a breakdown in airline operations would have widespread consequences, affecting passengers, businesses, and the broader economy, and called for urgent dialogue between both parties.
The latest tension follows earlier reports of growing unrest in the aviation sector, as ground handlers issued warnings over unpaid debts, raising fears of potential service disruptions and flight delays across the country.
