RwandAir Shifts Focus To Cargo Business
RwandAir has recently stepped up the hunt for cargo deals across the region and globe as the only way to survive the wrath of #Covid-19 which has forced grounding of airlines worldwide. Over reliance on passenger model has evidently hit hard the national carrier and is now thinking outside the box.
Last month, RwandAir started operating international cargo flights to Brussels, London and Guangzhou. Yvonne Manzi Makolo RwandAir CEO says, “We’re doing cargo flights to Brussels and London to support our exports. We’re also going to Guangzhou to pick up medical supplies and equipment needed in Rwanda.”
Those watching closely say that the new move is part of preparations of receiving yet another round of financial support from government according to a recovery plan seen by Taarifa.Government says the newly created #Covid-19 economic recovery fund aims at, “supporting businesses in the sector hit hardest by the pandemic so that they can survive, resume work and safeguard employment”. The planning documents states further; “targeted sectors are those highly impacted by restrictions put in place against the spread of #Covid-19 and exposed to consumer discretionary spending and those with global supply chains that are being disrupted”.
However, this document does not clearly indicate how much RwandAir will receive.
By estimated size of the recovery plan unveiled by the government of Rwanda set at over US$800 million over next 2 years, it is anticipated that RwandAir as one of the hardest hit businesses is bound to get a very substantial allocation made to it.
Aviation being a capital intensive sector, it only makes sense to allocate substantial resources to keep RwandAir a major strategic public investment afloat.
The support will also make it cushion the carrier to steadily reposition it for its medium strategic partnership with Qatar Airways.
Experts argue that regional carriers such as RwandAir in the post #Covid-19 pandemic scenario need to diversify their sources of revenue by cutting over reliance on passenger services.
This thinking sits very well with Rwanda’s overall strategy of boosting competitiveness of its products within regional and international markets while ensuring that its land locked economy transforms into a connected one to rest of the world.
Rwanda went into a 45-day total lockdown that effectively grounded its budding aviation sector in a bid to flatten the curve of the pandemic.
The sector is known to handle more than 800,000 passengers annually from its hub at Kigali International Airport. Policy makers singled it out as the primary importer and distributor of the virus into the country.
