African airlines face extinction, lose $6b in revenue, $28b in GDP-IATA
- Seeks bail out for continent’s carriers
- Distressed carriers cut jobs
The International Air Transport Association (IATA) lamented the suffering of African airlines occasioned by the devastating effects of COVID-19.
Speaking at a media roundtable, IATA’s Vice President, Africa and Middle East, Muhammad Ali said the continent’s carriers are currently battling for survival, stressing thatalready, Air Mauritius has entered voluntary administration, South African Airways and SA Express are in business rescue.
He noted that other distressed carriers have placed staff on unpaid leave or signalled their intention to cut jobs.
In the Middle East, he said Etihad Airways, Qatar, Emirates have all confirmed that they have forced to make redundancies because of the economic crisis caused by the Covid-19.
The IATA chief further disclosed that airline revenue losses means GDP and jobs at risk
Africa just as he puts airlines revenue loss at $6 billion, job losses in aviation and related industries at $3.1 million, loss in Gross Domestic Product (GDP) supported by aviation at $28 billion.
In the Middle East, Al Bakri puts airline revenue loss at $24 billion, job losses in aviation and related industries at $1.2 million and loss in GDP supported by aviation at $66 billion.
He stated that the main priority is to secure relief for industry through government engagement across the region through direct financial support,loans, loan guarantees and support for the corporate bond market.
Others, he said are reduction, waiver or deferral of government-imposed taxes and fees.
As part of relief measures, Al Bakri disclosed that Senegal announced $128 million in relief for the Tourism and Air Transport sector,.
His words, “We have seen some additional support for the air transport sector in terms of direct corporate and industry tax relief. TheCountries include Angola, Botswana, Chad, Egypt, Cote D’ Ivoire, Ghana, Jordan, Kenya, Morocco, Oman, Qatar, Saudi, Senegal, South Africa, Tunisia, UAE”.
“We have also seen a number of relief measures in terms of Airport and ANSP charges from ASECNA (ANSP covering 17 states in Central West Africa and Madagascar), Namibia Airports Company (8 airports), Ghana Airport Company (6 airports), Seychelles, Oman airports, AMM airport, DXB & DWC airports”.
He noted that in a further request for help for African airlines, five international air transport and tourism bodies launched an appeal to international financial institutions, country development partners and international donors to support Africa’s Travel & Tourism sector.
The major stimulus from governments combined with liquidity injections by central banks, he said would boost the economic recovery once the pandemic is under control.
“Almost every challenge in aviation requires a team effort to solve it. Today we face the biggest challenge in commercial aviation’s history: Restarting an industry that largely has ceased to operate across borders, while ensuring that it is not a meaningful vector for the spread of COVID-19”, he said.
