African airlines brace for severe turbulence as the impact of COVID-19 deepens
The International Air Transport Association is urging governments in Africa and the Middle East to create alternatives to airline arrival quarantine, as this would allow economies to re-start whilst avoiding the risk of increasing Covid-19 cases. Muhammad Albakri, Regional Vice President for Africa and the Middle East at the International Air Transport Association joins CNBC Africa for more.
Mon, 06 Jul 2020 11:00:27 GMT
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AI Generated Summary
- The African aviation market has experienced a significant decline in demand and revenue, with airlines projected to incur substantial losses due to decreased passenger numbers.
- Airlines in Africa are facing unprecedented financial challenges, risking their ability to survive as they deplete their cash reserves to sustain operations.
- Government intervention through financial aid and adherence to international guidelines for restarting air travel is essential to enable the recovery of the aviation sector and prevent further economic downturn.
The aviation industry in Africa is facing its most challenging times in history as the impact of the COVID-19 pandemic deepens. The International Air Transport Association (IATA) is urging governments in Africa and the Middle East to create alternatives to airline arrival quarantine measures in order to restart economies while avoiding the risk of increasing COVID-19 cases. Mohammed Al-Bakri, the regional vice president for Africa and the Middle East at IATA, highlighted the devastating effects the pandemic has had on the airline industry in the region during a recent interview.
Al-Bakri stressed that the African aviation market has been hit hard, with demand forecasted to fall by 58.5 percent in 2020 compared to 2019. He revealed that airlines are expected to post a staggering loss of $2 billion due to a drastic decrease in passenger numbers and revenue. This has led to a critical situation where airlines are struggling to survive, with many already depleting their cash reserves amid continuous losses.
The dire financial situation facing airlines in Africa is highlighted by the fact that for every passenger flown, airlines are losing approximately $42. With such unsustainable losses, the future of many airlines in the region remains uncertain. Al-Bakri emphasized the urgent need for governments to provide financial aid and support the industry through this crisis period.
In order to enable the survival and recovery of the African aviation industry, Al-Bakri outlined two crucial steps that must be taken. Firstly, governments must announce and implement financial stimulus packages tailored to support airlines during this unprecedented crisis. Secondly, the industry must adhere to the takeoff plan proposed by the International Civil Aviation Organization (ICAO) to gradually restart operations safely, ensuring that air travel does not contribute to the spread of the virus.
While advocating for a coordinated and consistent approach to reopening borders and restarting air travel, Al-Bakri warned against individualized procedures and policies that deviate from the international guidelines set by ICAO. He emphasized the importance of aligning national plans with globally accepted standards to facilitate the industry's recovery and prevent further economic downturn.
Despite the challenges and uncertainties facing the aviation sector in Africa, Al-Bakri remains hopeful that governments will heed the call to support the industry and implement measures that will enable airlines to resume operations effectively. The collaboration between governments and aviation stakeholders is crucial in charting a path towards recovery and ensuring the resilience of the airline industry in the region.
As airlines continue to grapple with the financial fallout of the pandemic and the prospect of further losses, the urgent need for government intervention and coordinated efforts to revitalize the aviation sector in Africa has never been more pressing. The future of the airline industry hinges on swift and decisive action to mitigate the impact of COVID-19 and pave the way for a sustainable recovery.