The Airline Operators of Nigeria (AON) has raised alarm over mounting financial losses, revealing that domestic carriers have lost more than N150 billion within two months, as tensions escalate with ground handling companies over unpaid debts.
A member of AON’s Board of Trustees, Roland Iyayi, said the situation has pushed airlines to the brink of survival, warning that operators are struggling to stay afloat.
“Airlines have bled over N150bn in two months. Where is the money going to come from? It’s gotten to a point where nobody can threaten anybody any longer,” Iyayi said.
He cautioned that the survival of ground handling firms is closely tied to that of airlines, stressing that any breakdown in operations would have far-reaching consequences across the aviation value chain.
“If airlines don’t exist, they don’t have a business. Nobody cares about the airlines; everybody wants to collect money,” he added.
The standoff comes as the Aviation Ground Handling Association of Nigeria (AGHAN) threatens to escalate action over about N9 billion owed by domestic airlines. The association had earlier issued a seven-day ultimatum, warning it could suspend critical ground services if the debts remain unpaid.
Chairman of AGHAN, Olaniyi Adigun, confirmed that the association is weighing its next steps in line with labour laws.
“What we intend to do is to come out with a press conference, and according to Nigerian law, we have our own strategy. We are meeting together and will state our next move,” he said.
Adigun noted that while some airlines have begun making payments, the majority are yet to comply, adding that the association could escalate its response after the expiration of the notice period.
“Under labour law, when you give a seven-day notice and there is no response, you can issue a three-day notice. We are following due process,” he explained.
Industry insiders have warned that the timing of the dispute could worsen Nigeria’s already fragile economic situation. A senior airline official, who spoke anonymously, urged both parties to prioritise dialogue to avoid a sector-wide crisis.
“As a nation, we cannot afford for our airlines to go down now because it’s going to create a lot of problems. We’re in a very difficult position,” the source said.
The ongoing dispute has raised fears of widespread flight disruptions, as ground handling companies provide essential services such as baggage handling, aircraft marshaling, and ramp operations—critical to airline functionality.
Analysts say a prolonged standoff could ripple across the economy, affecting travel, trade, and business activities nationwide. Stakeholders are therefore calling for urgent negotiations to resolve the impasse and stabilise the aviation sector.
For now, both sides remain entrenched, with airlines citing financial distress and handlers insisting on payment, leaving the industry at a delicate crossroads.
