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BL Premium reports that the Airlines Association of Southern Africa warned on Monday that the easing of the lockdown regulations to allow for limited air travel would do little to save struggling airlines.
“Obviously airlines would like to fly without restrictions as soon as possible. That will be viable and provide them with a greater chance of recovery,” the association’s Chris Zweigenthal said. The airline industry, which counts eight players, is on the verge of collapse because of the Covid-19 crisis. Many of the airlines that have been grounded since the lockdown came into force at the end of March had enough cash in hand to survive for two months, meaning that by June they could be unable to meet their financial obligations. Comair and SAA recently went into business rescue, while SA Express entered provisional liquidation. On Sunday, President Cyril Ramaphosa said when the country moved from level 4 of the lockdown to level 3 on 1 June, limited business travel would be phased in. Transport minister Fikile Mbalula is expected to provide more details in coming days. Zweigenthal said the industry was still in talks with the government and motivating why it should be given the green light to operate at full scale as soon as possible. But even if the airlines are allowed to operate at full capacity, they are unlikely to see a return to pre-crisis traffic levels before the start of 2021 at the earliest.
- Read the full original of the report in the above regard by Bekezela Phakathi at BusinessLive (paywall access only)
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