Chronicle Editor
Leonard Ncube, Victoria Falls Reporter
AFRICAN governments would have to come up with financing mechanisms to cushion their respective airlines post Covid-19 period where international travel is projected to remain subdued for some time, an international aviation consultant has said.
Several airlines suspended services after the outbreak of the global pandemic, which resulted in total collapse of tourism and other industries directly linked to international travel. Aviation is one of the sectors worst affected by the global pandemic with revenue losses estimated at more than US$250 billion this year, making 44 percent lower than in 2019.
The International Air Transport Association (IATA) has said airlines would need around US$200 billion from governments to recover from the shock.
Speaking in a podcast interview on “Ultimate Tourism Chat” hosted by Zimbabwe Tourism Authority (ZTA) spokesperson Mr Godfrey Koti, Mr Ogaga Udjo who is managing director for ZAR logistics, an advisory services consultancy, which specialises in working with organisations involved in transport infrastructure and tourism development in emerging markets, said other countries outside Africa have allocated funding to the aviation industry while there has not been any direct support for African airlines.
“No country has so far channelled resources to aviation. African governments should get their houses in order when it comes to aviation. We are too slow to a point of not being productive and its impacting on us. We have all documents and structures in place but we are not implementing,” he said.
“Governments are focused on health and economic response, which isn’t really including the aviation. Yet cargo is a prominent feature during this Covid-19 time because cargo flights are still operating with less restrictions to import and export goods for Covid-19. African airlines more than ever need Government support because the continent needs air travel,” said Mr Udjo.
He singled out Ghana saying the country has been progressive because of strong consumer protection laws where they regulate how airlines can change schedules. He said the West African country relaxed the laws and allowed schedule changes to happen in the wake of Covid-19.
“IATA is calling for three broad areas, direct financial support, loan guarantees and support from corporate bond markets and tax relief but we haven’t seen anything specific from an Africa perspective,” he highlighted.
He challenged African airlines to capitalise on the Covid-19 induced global lockdown and restrategise.
“This situation is presenting a fantastic opportunity for all stakeholders and all African aviation to collaborate not just in their respective countries but across borders because what is likely to happen is domestic travel will start up and we will reach a no travel in terms of immediate and neighbouring countries and then delayed international travel. “This gives an opportunity as stakeholders within the aviation space to ensure that our house is in order,” said Mr Udjo.
Speaking on the same platform, a Ghanaian tourism expert Mr Kojo Bantum called for a borderless Africa saying airlines on the continent need government support now more than ever.
Economists have predicted that Africa’s aviation industry will struggle to find its feet after the pandemic as the loss in passengers means loss in revenue and impacts on economies and Gross Domestic Production contributions.
ZTA acting chief executive Mr Givemore Chidzidzi said aviation supports tourism, a key pillar of the economy, which provides 200 000 jobs in 26 tourism operation categories in Zimbabwe.
The aviation sector employs about 2,5 million people in Africa and contributes about US$50 billion to the continent’s economy. — @ncubeleon
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