BL Premium reports that SA’s aviation industry is teetering on the brink of collapse as it counts the costs of a nationwide lockdown that has grounded hundreds of aircraft, putting nearly half-a-million jobs at risk.
Chris Zweigenthal, CEO of the Airlines Association of Southern Africa, warned on Tuesday: "If we do not start soon to operate [again] the situation will worsen and we will see further collapse. All airlines will be affected." His comments came as SA Express, a regional arm of the collapsing SA Airways (SAA), tumbled into provisional liquidation after its business rescue practitioners said it had no prospect of survival, and Comair scrapped plans to pay a portion of salaries to workers sent on unpaid leave. The airline industry, which counts eight players, will remain largely grounded on Friday when level 4 of the Covid-19 national lockdown commences. National borders will remain closed and interprovincial travel will still be strictly prohibited. Zweigenthal said many of the airlines had enough cash in hand to survive for two months, meaning that by June they will be unable to meet financial obligations. Airlines are not expected to be back in business until level 2 is reached, which could be weeks or even months away. But, Zweigenthal said the industry was in talks with the government about allowing airlines to start operating in June under strict health guidelines. The industry is also in talks with infrastructure providers such as the Civil Aviation Authority and Airports Company SA to either reduce or defer, or completely waive fees.
- Read the full original of the report in the above regard by Bekezela Phakathi at BusinessLive (paywall access only)
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