African Airlines return to a "new normal"
African aviation is slowly coming back to life. The past few months has seen unprecedented disruptions to the travel and tourism industries across the continent.
According to International Air Transport Association (IATA) Africa’s Travel and Tourism employs 24,6 million people on the continent and contributes $169 billion to Africa’s gross domestic product. The Covid19 crisis could see the collapse of the sector in Africa, taking with it millions of jobs. Already we have seen some disturbing signs in the tourism industry with a number of hotel groups laying-off staff indefinitely.
The United Nations World Tourism Organisations and its partners jointly called on international financial institutions, country development partners and international donors to support the African Travel and Tourism sectors through a number ways.
IATA Director General and CEO, Alexandre de Juniac said “Airlines are at the core of the Travel and Tourism value chain that has created quality jobs for 24,6 million people in Africa. Their livelihoods are at risk. Containing the pandemic is the top priority. But without a lifeline of funding to keep the Travel and Tourism sector alive, the economic devastation of COVID-19 could take Africa’s development back a decade or more. Financial relief today is a critical investment in Africa’s post-pandemic future for millions of Africans.
Travel and tourism are two closely related industries. Airlines are important for tourism and in South Africa according to Guy Leitch an aviation expert, airlines are responsible for about 90% of incoming tourists to South Africa from overseas destinations. With travel restrictions the financial losses these two industries have taken are monumental to say the least.
With exception of the Ethiopian Airlines and perhaps a few others the majority of African airlines have been loss making entities before the current pandemic. However African aviation had been poised for a 5% year on year growth before this catastrophic novel outbreak.
The effects of Covid19 on the industry have been unprecedented. A number of airlines have gone under business rescue or filed for voluntary liquidation. However, amid the crisis a new demand for aviation presented itself and this has been an olive leaf extended to most airlines across Africa and the world. Cargo And Repatriation
In the absence of commercial aviation, the movement of air cargo worldwide was hampered. This has seen a rise in demand for passenger jetliners conducting cargo operations. A number of African airlines have been performing these cargo flights transporting produce to markets across the globe.
Ethiopian Airlines through its cargo centre at Bole International and in partnership with Alibaba distributed medical relief donations to all African countries from the Chinese tech company. Ethiopian Airlines Group CEO Tewolde Gebremariam commented “No one thought that an airline from a developing African country would come to serve South American countries such as Brazil and Argentina. But this is what happened.” This comes after the airline further extended its cargo services to South America.
Travel restrictions meant that millions of people were stranded away from home. African airlines are on a daily basis performing a number of repatriations flights reuniting families at this difficult time. Despite its current woes, South African Airways has performed numerous repatriation flights to destinations such as Melbourne, Moscow, Frankfurt, Lagos and Atlanta. Nigeria’s Air Peace has been doing the same to India and the Middle East.
It has not all been intercontinental repatriation services, a number of African airlines have been reuniting Africans within the continent. Tanzania’s Precision Air and conducted a service between Dar Es Salaam and Johannesburg while Kenya’s low cost carrier Jambo Jet provided service between Nairobi and Juba.
Airline Status Africa is now gradually lifting the travel restrictions. Ghana lifted the travel restrictions on domestic travel in April and subsequently local airlines resumed services. As of June 2020 both Tanzania and South Africa have resumed domestic travel with South Africa operating with strict requirements.
Air Namibia had scheduled a number of repatriation flights before they were cancelled indefinitely following remarks of liquidating the airline by President Geingob. Domestically the airline has maintained a presence to all key routes within the coastal desert country. This air service has spurred the resurgence of domestic tourism thereby giving a lifeline to the local economy.
Egypt Air announced a resumption of service to a number of European destinations from 1 July 2020. Both Morocco and Algeria have deferred the resumption of aviation services to early and mid-July. In the coming weeks an increase in aircraft movement is projected in Africa as many states are now relaxing travel restrictions within their borders.
“Hygiene has become a key selling point for airlines”…
New Normal The return to domestic aviation has been characterized by a new set of aviation protocols. Commonly referred to as the “new normal”, passengers are now enduring new flying experiences. A new set of hygiene protocols have been introduced that are aimed at curtailing the spread of the coronavirus. It is now mandatory for all passengers to wear a nose and mouth covering mask while at the airport and when flying. Airlines have suspended on-board meals and refreshments, magazines and newspapers have been removed completely.
Some airlines are practicing social distancing on board, leaving the middle seat unoccupied for the duration of the flight. Passengers are now having their hands sanitized at every point from checking in, document verification and boarding. Hygiene has become a key selling point for airlines coming out of this pandemic and more are going to been positioning as a hygienic airline.
Airports Company South Africa has introduced a contactless airport experience that includes self-scanning for boarding passes. In Ghana, passenger checked-in baggage is being sanitized before and at the arrival of its final destination. Airports and airlines are now disinfecting their equipment on a more regular basis.
WAY FORWARD This crisis has presented African airlines with an opportunity to re-craft their strategies. As indicated earlier, the mass weight of African airlines have been making losses. This crisis allows airlines to examine what is critical to their profitability and what is not.
African Airlines Association (AFRAA) and its partners are calling for emergency funding for the industry. Governments are urged to look into providing waivers to airlines, tax holidays, loan guarantees and direct financial injection.
The Rwandan government announced a U$158 million relief package for RwandAir while the Senegalese authorities provided U$128 million in relief for the tourism and air transport sector. Kenyan government has waived landing and parking fees at the airports to facilitate movement of airlines in and out of Kenya.
African Airlines, in moving forward must revisit their business model and look into operating in an optimum manner. Urgent cuts on overheads are required and resources and operations require optimization. Closer collaboration and consolidation by airlines will yield more benefits for the industry, especially at such a time.
About the author: Nunurai Ndawana is the founder of Just African Aviation an aviation media company. He can be contacted on Twitter on @Nunuraindawana and email nunurai@justafricanaviation.com
This was first published in the VA 13 Travel Magazine. click to read more here
