AVIATION

Association calls for support for African airlines

Airlines count loses as coronavirus takes toll on aviation industry

In Summary
  • The passenger business of the global air transport industry is estimated by IATA to make revenue losses between $63 billion (Sh6.3 trillion and $113 billion (Sh11.3 trillion) in 2020.
  • In the likelihood that the virus remains uncontained, the economic impact could be much deeper and more persistent.
Abderahmane Berthé, AFRAA Secretary General
Abderahmane Berthé, AFRAA Secretary General
Image: COURTESY

The African Airlines Association (AFRAA) is urging African governments to consider compensating inevitable losses, alleviate operating costs, and subsidize African airlines in a bid to assure the industry’s viability post-Covid-19.

This as the coronavirus continues taking a toll on the aviation industry and global economy at large.

The passenger business of the global air transport industry is estimated by IATA to make revenue losses between $63 billion (Sh6.3 trillion) and $113 billion (Sh11.3 trillion) in 2020.

 

The forecast for global real GDP growth could dip below 2.5 per cent this year according to the Economist Intelligence Unit.

In the likelihood that the virus remains uncontained, the economic impact could be much deeper and more persistent.

“AFRAA strongly recommends that African airlines engage their stakeholders to develop an all-inclusive proactive response strategy that addresses the adverse impact of the COVID-19 on their business to ensure airlines recover effectively to support key economic sectors,” said AFRAA Secretary-General, Abderahmane Berthé.

He added that AFRAA remains at the forefront with its members and the airline industry at large, in collaborative efforts to deal with and contain the pandemic calling upon all stakeholders to take the necessary measures and precautions to keep safe.

Cases in Africa as of 19 March were 640 in 34 countries.

Kenya, on Wednesday, reported three more cases bringing the total to 7 as the first case was reported last Friday while Tanzania has so far reported three cases of the virus.

COVID-19 has claimed around 6,674 lives across the globe, with 159 countries reporting infections.