Four African airlines cease operations, more expected to withdraw



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By Sizwe Dlamini Article publication time9h ago

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CAPE TOWN – Four airlines in Africa have ceased operations due to the impact of Covid-19 and two are in voluntary management, with many more in severe financial distress expected to withdraw without committed relief.

This is according to the International Air Transport Association (IATA), which said in a statement Wednesday that without urgent financial aid more carriers and their employees were at risk, as was the air transport industry in Africa, which keeps around 7.7 million jobs on the continent.

IATA Regional Vice President for Africa and the Middle East, Muhammad Albakri, said the risk of a “job bloodbath” was not just in aviation, but in all industries that depended on efficient global connectivity.

Much needed financial assistance has been promised, but little has materialized. The situation is critical. Governments and donor organizations must act quickly or the challenge will shift from supporting an industry in grave danger to resurrecting from bankruptcy, ”said Albakri.

The governments of Rwanda, Senegal, Côte D’Ivoire and Burkina Faso have pledged a total of $ 311 million (about R5 billion) in direct financial support for air transport.

Some governments, international financial agencies and other institutions, such as the African Development Bank, the African Import and Export Bank, the African Union and the International Monetary Fund (IMF), have pledged another $ 30 billion for air transport and transportation. tourism.

However, most of this relief still reaches those who need it.

IATA revised down its 2020 passenger traffic forecast for Africa, saying anticipated bookings for air travel in the fourth quarter showed the recovery continued to falter.

The association said that while domestic travel was picking up in Africa as countries reopened their borders, international travel remained severely restricted as major markets, including the EU, remained closed to citizens of nations. African. “Residents of only two African countries, Rwanda and Tunisia, can enter the borders of the EU.”

Albakri said the biggest drop in passenger traffic in 2020 was more bad news for the aviation industry in Africa. “A few months ago, we thought that the demand that would reach 45 percent across the continent in 2020 compared to 2019 was as bleak as possible. But with international travel practically non-existent and with a slower than expected rebound in domestic travel, we have revised our expectations down to 30 percent. “

IATA expects full-year 2020 passenger numbers in Africa to reach just 30 percent of 2019 levels, a significant reduction from the 45 percent projected in July. In absolute numbers, the region is expected to receive around 45 million travelers in 2020 compared to 155 million in 2019.

The association said that in 2021, demand was expected to strengthen to 45 percent of 2019 levels to reach about 70 million travelers to / from / within the region. A full return to 2019 levels is not expected until late 2023.

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