AFRICA’s aviation industry is in desperate need of government relief measures and corporate support if it is to weather the financial impact brought about by the novel coronavirus.
Speaking with Godfrey Koti on Ultimate Tourism Chat, episode three, aviation expert Ogaga Oju, said tax relief and loan guarantees are vital as the economic damage of a crippled industry extends far beyond the sector itself.
The International Air Transport Association (IATA) has said the region’s airlines could lose $6 billion of passenger revenue compared to 2019.
Job losses in aviation and related industries could grow to 3.1 million.
”For Africa, it’s about US$4 billion revenue loss in terms of impact and this actually translates to a drop of industry revenue of 32 percent for Africa and about 39 percent for the Middle East,” Oju said.
”And the total impact globally is about US$252 billion. Some of the larger countries where aviation is more developed, arguably South Africa there is an expectation of 10,7 million fewer passengers which is US$2,2 billion revenue loss, loss of 200,000 jobs as well as a big drop in contribution to South Africa’s economy. In other African countries, that really is the case as well. Nigeria, 3,5 million fewer passengers, Ethiopia 1,6 million fewer passengers, Kenya the same trend. Although we don’t have the quantum at hand, we can expect the for other markets as well.”
IATA has appealed to development banks and other sources of finance to support Africa’s air transport sectors which are now on the verge of collapse.
“Airlines in Africa are struggling for survival. Air Mauritius has entered voluntary administration, South African Airways and SA Express are in business rescue, other distressed carriers have placed staff on unpaid leave or signaled their intention to cut jobs,” Muhammad Al Bakri, IATA’s Regional Vice President for Africa and the Middle East, said in a press statement on Thursday.
”More airlines will follow if urgent financial relief is not provided. Aviation in Africa supports 6.2 million jobs and $56 billion in GDP. Sector failure is not an option, more governments need to step up,” Al Bakri added.