Sky-High Costs Threaten Airlines: United Nigeria CEO Begs FG For Single-Digit Loans Amid Mounting Charges

Sky-High Costs Threaten Airlines: United Nigeria CEO Begs FG For Single-Digit Loans Amid Mounting Charges

Obiora Okonkwo, Founder and Chairman of United Nigeria Airlines, has appealed to the federal government to establish a single-digit loan scheme for airline operators, facilitating easier access to credit.

Okonkwo made this call during a press conference in Abuja on Wednesday, marking the airline’s fourth anniversary…….READ MORE

He emphasized that excessive charges from government agencies continue to hinder the growth of domestic airlines and urged immediate intervention.

“A significant boost to the industry would be a government-backed program offering single-digit interest loans to local operators,” Okonkwo stated.

He criticized the multitude of fees airlines must pay to various government bodies, totaling around 20 agencies, including the NCAA, NAMA, and FAAN.

“The profit margin in this industry is already minimal. Meeting all these financial obligations leaves us with almost nothing,” he added.

Okonkwo stressed that reducing these charges would enable airlines to expand operations and improve working conditions for their staff.

“Access to affordable credit is critical, especially as we compete globally against operators who secure foreign exchange credit at rates between 3% and 5%,” he noted.

Okonkwo praised President Bola Tinubu’s foreign exchange policies, stating they have alleviated financial pressures on the aviation sector.

“Before this administration, converting naira to foreign currency to meet our obligations was a nightmare. We lost many contracts due to the inability to secure necessary forex,” he said.

The domestication of the Cape Town Convention, he added, has further reduced operational costs.

Addressing flight delays and cancellations, Okonkwo pointed out that airport authorities, not airlines, are responsible for passenger communications during such events.

“Our biggest challenge remains the passengers. Despite our best efforts to provide excellent service, some passengers exhibit unruly behavior, adding stress to our operations,” he remarked.

He urged collaboration with the media to educate the public on their rights and responsibilities while emphasizing that delays occur globally and are not unique to Nigeria.

“We go above and beyond to satisfy passengers, but their attitudes often strain our resources,” Okonkwo added, citing instances where passengers damaged equipment or assaulted staff.

On rising ticket prices, Okonkwo revealed that airlines often subsidize costs to make flying affordable, which in turn hampers their growth and service quality.

“We understand the economic challenges passengers face, but these subsidies affect our ability to expand and improve,” he explained.

The airline is planning to expand its operations, and Okonkwo called on the government to enhance infrastructure to support the aviation industry.