Onyema revealed that his company once suffered a staggering $2 million loss to a Tunisia-based leasing firm. According to him, the incident occurred when the foreign company requested funds to procure aircraft parts but later disappeared without delivering on the deal.
The Air Peace boss said he deliberately refrained from taking legal action against the company despite the huge financial setback. His decision, he explained, was influenced by the precarious international standing of Nigerian carriers at the time.
“Nigeria was unofficially blacklisted for breach of contract in the global aviation community,” Onyema said. “If I had stopped them from taking the money, the narrative would have been that Nigerian airlines are unreliable. For the sake of the industry and our national image, I chose not to fight it.”
He noted that previous defaults by some local carriers on lease agreements had already strained relationships with foreign lessors, limiting access to much-needed dry-lease opportunities. “You have to protect your country’s flag,” he stressed, adding that the sacrifice was made for the benefit of the entire Nigerian aviation sector.
Onyema also drew attention to the steep funding barriers confronting the industry. With interest rates hovering around 35 per cent, he said, banks are increasingly reluctant to lend to airlines, especially given past instances of non-repayment and integrity concerns. Collateral requirements, he added, are often “almost impossible to meet.”
While acknowledging that there have been improvements in the industry’s reputation, Onyema urged the government to do more to support operators. He suggested that the Central Bank of Nigeria (CBN) or the Bank of Industry create a dedicated foreign exchange window for airlines, similar to measures adopted by countries like Egypt.
“The government has at least stabilised exchange rates, and that’s commendable,” he said. “But if airlines could access dollars at a slightly cheaper rate, it would help level the playing field for Nigerian operators competing internationally.”
Onyema’s remarks underscore the complex balance between safeguarding national image, maintaining international credibility, and navigating the harsh economic realities of Nigeria’s aviation business landscape.