The International Air Transport Association (IATA) reiterated its call for government relief measures as the effects of the COVID-19 pandemic hit harder in Africa.
Brandnewsday understands that the IATA (International Air Transport Association) represents over 290 airlines comprising 82% of global air traffic.
Meanwhile, the association has outlined the economic damages that the coronavirus crisis might cause airline businesses, countries generation revenues and loss of jobs which is estimated close to 1 million jobs across the most affected African countries.
These estimates are based on a scenario of severe travel restrictions lasting for three months, with a gradual lifting of restrictions in domestic markets, followed by regional and intercontinental.
To minimize the impact on jobs and the broader African economy it is vital that governments step up their efforts to aid the industry. Some governments in Africa have already taken direct action to support aviation, including:
But more help is needed. IATA is calling for a mixture of:
IATA has also 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 signalled their intention to cut jobs. More airlines will follow if urgent financial relief is not provided. The economic damage of a crippled industry extends far beyond the sector itself. Aviation in Africa supports 6.2 million jobs and $56 billion in GDP. Sector failure is not an option, more governments need to step up,” said Muhammad Al Bakri, IATA’s Regional Vice President for Africa and the Middle East.
Looking Ahead
In addition to vital financial relief, the industry will also need careful planning and coordination to ensure that airlines are ready when the pandemic is contained.
According to IATA, we are scoping a comprehensive approach to re-starting the industry when governments and public health authorities allow. A series of virtual regional summits, bringing together governments and industry stakeholders are taking place this week. The main objectives will be:
“As governments struggle to contain the COVID-19 pandemic, an economic catastrophe has unfolded. Re-starting aviation and opening borders will be critical to the eventual economic recovery. Airlines are eager to get back to business when and in a way that it is safe. But starting up will be complicated. We need to make sure that the system is ready, have a clear vision of what is needed for a safe travel experience, establish passenger confidence and find ways to restore demand. Cooperation and harmonization across borders will be essential to restart aviation,” said Al Bakri.
Latest impact estimates, selected African countries:
NATION | REVENUE IMPACT (US$ BILLION) | PASSENGER DEMAND IMPACT (MILLIONS) | PASSENGER DEMAND IMPACT % | POTENTIAL JOBS IMPACT | POTENTIAL GDP IMPACT (US$ BILLIONS) |
---|---|---|---|---|---|
South Africa | -3.02 | -14.5 | -56% | -252,100 | -5.1 |
Nigeria | -0.99 | -4.7 | -50% | -125,400 | -0.89 |
Ethiopia | -0.43 | -2.5 | -46% | -500,500 | -1.9 |
Kenya | -0.73 | -3.5 | -50% | -193,300 | -1.6 |
Tanzania | -0.31 | -1.5 | -39% | -336,200 | -1.5 |
Mauritius | -0.54 | -2.1 | -59% | -73,700 | -2 |
Mozambique | -0.13 | -0.71 | -49% | -126,400 | -0.2 |
Ghana | -0.38 | -1.4 | -51% | -284,300 | -1.6 |
Senegal | -0.33 | -1.3 | -51% | 156,200 | -0.64 |
Cape Verde | -0.2 | -1.2 | -54% | -46,700 | -0.48 |
Impact Estimate April 2nd
NATION | REVENUE IMPACT (US$ BILLION) | PASSENGER DEMAND IMPACT (MILLIONS) | PASSENGER DEMAND IMPACT % | POTENTIAL JOBS IMPACT | POTENTIAL GDP IMPACT (US$ BILLIONS) |
---|---|---|---|---|---|
South Africa | -2.9 | -10.7 | -41% | -186,805 | -3.8 |
Kenya | -0.54 | -2.5 | -36% | -137,965 | -1.1 |
Ethiopia | -0.30 | -1.6 | -30% | -327,062 | -1.2 |
Nigeria | -0.76 | -3.5 | -37% | -91,380 | -0.65 |
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