Following the deadly blow, which the ravaging Coronavirus (COVID-19) has dealt on the business of global aviation sector, International Air Transport Association (IATA) has renewed its call for government relief measures as the impacts of the COVID-19 crisis in Africa deepen. IATA, in its latest assessment of COVID-19 crisis and its impact on African airlines and air transport listed Nigeria, South Africa, Ethiopia, Kenya, Tanzania, Mauritius, Mozambique, Ghana, Egypt, Senegal and Cape Verde as countries facing the hardest hit as a result of the COVID-19 pandemic.
Even before the dawn of the disease, which has crippled every other business across the globe aside from airlines, Nigerian aviation sector have struggled to compete like their peers in other climes. It would be recalled that Asset Management Corporation of Nigeria (AMCON), earlier in its life intervened in aviation industry just to support their growth. In the recent past, the government recovery agency took over Aero Contractors as well as Arik Air Limited and have been managing them before the arrival of COVID-19, that have forced the government to close all airports in the country.
When we contacted Jude Nwauzor, Head, Corporate Communications Department of AMCON on what the IATA meant for the airlines managed by AMCON, he told us that the two airlines managed by his agency are not different from the other airlines in Nigeria. “The call for relieve measures as canvassed by IATA is a welcome development for all airlines in Nigeria and in Africa. It would not be proper to single out Aero and Arik in this instance because the airlines are part of the whole that IATA is seeking relief measure for. At the end of this devilish pandemic, we will see how the different sectors will evolve,” Nwauzor said.
According to IATA, South Africa tops the greatest loser in aviation as it is expected to see14.5 million fewer passengers resulting in a $3.02 billion revenue loss, risking 252,100 jobs and $5.1 billion in contribution to South Africa’s economy. Following South Africa will be Nigeria, which they expect would see 4.7 million fewer passengers resulting in a $0.99 billion revenue loss, risking 125,400 jobs and $0.89 billion in contribution to Nigeria’s economy.
Nigeria is closely followed by Ethiopia with estimated 2.5 million fewer passengers resulting in a $0.43 billion revenue loss, risking 500,500 jobs and $1.9 billion in contribution to Ethiopia’s economy. Kenya, they forecast will see 3.5 million fewer passengers resulting in a $0.73 billion revenue loss, risking 193,300 jobs and $1.6 billion in contribution to Kenya’s economy; Tanzania 1.5 million fewer passengers resulting in a $0.31billion revenue loss, risking 336,200 jobs and $1.5 billion in contribution to Tanzania’s economy. Mauritius is projected to see 3.5 million fewer passengers resulting in a $0.54 billion revenue loss, aisking 73,700 jobs and $2 billion in contribution to Mauritius’ economy; Mozambique 1.4 million fewer passengers resulting in a $0.13 billion revenue loss, risking 126,400 jobs and $0.2 billion in contribution to Mozambique’s economy.
Ghana, IATA continued will record 2.8 million fewer passengers resulting in a $0.38 billion revenue loss, risking 284,300 jobs and $1.6 billion in contribution to Ghana’s economy; Senegal 2.6 million fewer passengers resulting in a $0.33 billion revenue loss, risking 156,200 jobs and $0.64 billion in contribution to Senegal’s economy and Cape Verde will see 2.2 million fewer passengers resulting in a $0.2 billion revenue loss, risking 46,700 jobs and $0.48 billion in contribution to Nigeria’s economy.
