‘Flight resumption not solution to airlines’ survival’
- Carriers need over 90 days to ensure future
The Managing Director of Aero Contractors, Capt. Ado Sanusi, painted a grim picture of the uncertainty of many airlines in the country to survive post-COVID-19
The airline chief told Woleshadarenews that the resumption of flight operation after the Coronavirus pandemic would not guarantee survival of airlines because of scarcity of funds, lamenting that the entire supply of revenue has been shut-down completely.
His words: “The main income or revenue line has been closed. There is no revenue coming to the airlines and all other costs have remained constant. The only cost that has not remained constant is fuelling, which is very big. Fuelling is close to 30 per cent of costs to airlines.
“Leasing is there, other operational costs are there. Ticket sale is the main revenue of the airline and that is what sustains the organization. Now, you deprive that organization of that liquidity, it will be very difficult for the airlines to survive; not that they cannot survive but it will be very difficult for airlines to survive. That is why they are saying that it is very difficult to survive. Resumption does not guarantee survival of airlines.”
Sanusi reiterated that it might take carriers more than 90 days to test if they would survive because of paucity of cash, adding that the airlines would still struggle several months after resumption of operations.
He likened the resumption of flights after COVID-19 to starting up an airline, explaining that it would be extremely difficult because it would require the same people deployed to start a new airline.
He said the only marked difference from the two was just the fact that the carriers that stopped operations as a result of the pandemic had already built clientele of passengers.
According to him, “that is just the difference. When you hear that an airline has stopped operations and it is starting up, it is very difficult because it is almost the same energy you require to start up again. It is like you are going to start the airline all over.”
Last week, the International Air Transport Association (IATA) called for aviation-specific financial relief measures from the government of Nigeria to address the severe impact of the COVID-19 crisis on the air transport sector.
IATA’s Regional Vice President for Africa and the Middle East, Muhammad Albakri, in a statement, said given the importance of air transport for Nigeria’s economy and connectivity, the government must not let aviation fail, adding that Nigerian aviation industry faces liquidity crisis.
The clearing house for global airlines admitted that the Nigerian government had introduced broad economic relief packages to mitigate the devastation caused by COVID-19 but IATA now urges the government to implement specific financial relief measures for aviation to ensure that the sector will be capable of driving the recovery.
His words: “Nigeria has announced general relief measures for sectors affected by COVID-19, but not specifically for aviation. Given the importance of air transport for Nigeria’s economy and connectivity, the government must not let aviation fail. The industry faces a liquidity crisis.
“Without a viable aviation sector Nigeria’s eventual recovery from COVID-19 will be longer and even more painful. Aviation-specific financial relief measures are urgently needed as a matter of survival.”
The IATA chief disclosed that air transport had grounded to a halt in efforts to stop the spread of COVID-19, stressing that along with the direct impact on jobs and companies in aviation, related industries including tourism, hospitality and trade have been hit hard. All play an essential role in creating jobs and powering economies.
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