According to a report released by the IATA, African aviation is effectively at a standstill. The report states that on May 12 th , flights in Africa were operating at just 6% of the level of January this year. Despite the desperate situation, governments in African nations have provided less support than elsewhere in the world. This begs the question; what exactly is the future of aviation in Africa? Pin African airlines will have to take a much more coordinated approach if they want to survive the virus. Photo: Getty Images The IATA report goes on to say how the total loss of revenue for African airlines totals around $6 billion so far. This means a loss of 3 million jobs in the industry and a further knock-on effect to GDP of losses totaling $28 billion.
Many African airlines have now gone into administration. Air Mauritius, South African Airways , South African Express, and South Africa’s Comair have all already gone under. More could follow suit. Pin South African Airways has been struggling for a while before the virus. It is now one of several airlines reliant on government funds. Photo: Getty Images. Part of the issue here is that many African governments just don’t have the funds to provide bailout loans to airlines. More economically developed nations can draw on a vast amount of money to provide loans to keep airlines in the air. However, in Africa, money is spent on essential sectors like education, medicine, and security. So, what can airlines do if they won’t get government aid?
With no government to fall back on, some airlines will begin to look to private and or public investors to fund them through the crisis. Generally, investors want some form of control in return for their money. This means airlines may need to consider restructuring. This takes time and money, which most do not have.
Some airlines have received support from airport and air traffic management companies. Several airports in the Seychelles , Ghana, Namibia, and other nations did get some relief, but it isn’t enough. Other countries have been given tax breaks by governments who cannot provide loans but still want to help. Pin Ghana is indebted to Ethiopian Airlines, which helped it relaunch the past. The future should see more airlines supporting each other to help keep connections open. Photo: Boeing The IATA report also praised the African Development Bank […]