Press Release: AFRAA intensifies efforts for financial support to African airlines from adverse effects of COVID-19 pandemic

As part of intensified efforts and initiatives for financial support to its members from the adverse impacts of COVID-19 pandemic, the African Airlines Association (AFRAA) staged a webinar on the theme: “Financial support to the African airline industry in the context of COVID-19 pandemic impacts.”

The webinar, which took place on 04 June 2020, was held in partnership with the United Nations Economic Commission for Africa (UNECA) and the International Air Transport Association (IATA). The webinar is a follow up to a survey done by AFRAA and UNECA to quantify the indebtedness of African airlines from COVID-19 impacts which forms basis for campaigns for the much-needed financial support.

During this important webinar, Afreximbank sensitized African airlines on existing opportunities under the bank’s Pandemic Trade Impact Mitigation Facility (PATIMFA) designed to assist member countries in managing the adverse impacts of financial and economic shocks caused by COVID-19 pandemic. African airlines had a unique platform to discuss requirements and modalities for engagement with Afreximbank with a focus on immediate requirements.

AFRAA’s Secretary General, Mr. Abdérahmane Berthé stated: “The impact of the pandemic on the airline industry is severe and unprecedented. Immediate cash injection is needed to avoid insolvency or bankruptcy of African airlines that are expected to lose US$ 8.1bn in revenues for the year 2020.”

Among other actions that form part of the African High Level Task Force recommendations to African governments, AFRAA has proposed the setting up of an aviation sectorial COVID-19 recovery fund for the support of the airline industry.

“We will continue to seek more avenues for support to the industry from development finance institutions, country development partners and international donors as we navigate through these tough times.” Mr Berthe added.

The webinar concluded with a call for the development of a standard framework that could be adopted by all financial institutions and donors for application on airlines seeking financial assistance.

Press Release: AFRAA releases COVID 19 Impact Assessment on African Airlines

Nairobi, Kenya – 02 June 2020: The African Airlines Association (AFRAA) has released a new analysis of the impact of COVID-19 on the airline industry in Africa which reveals an estimated revenue loss of USD 8.103 billion for African airlines for the year 2020. The analysis is the first in a series of studies that will be published by the Association examining the toll of the pandemic on Africa’s air transport sector.

The impact assessment analysis further shows a 90.3% year on year passenger traffic reduction for the month of May; recovery is expected to start from Q3 2020 with domestic operations, followed by regional and intercontinental flights.

On cargo operations, there is currently a shortage of cargo capacity in Africa due to needs for carriage of medical equipment and essential goods. In the wake of this lack of capacity and rising prices, AFRAA is assisting its members to adapt in a bid to keep supply chains operational.

The evolution of the number of COVID-19 cases indicates that the most impacted countries in Africa are South Africa, Egypt, Morocco, Algeria and Ghana, each with a total of more than 5,000 cases of infection. While the rate of infections in other continents is beginning to ease off, in Africa the rate of infections are still on the rise. However, the recovery rate in Africa is higher, with an average death rate of 9% compared to the global rate of 19%.

Setting ground for the survival and recovery of the air transport industry

AFRAA Secretary General, Mr. Abdérahmane Berthé stated: “The availability of liquidity is the main issue to be addressed for airlines to survive and restart their operations. Without it, airlines can simply not survive this pandemic long enough to restart their operations. AFRAA urges African governments to consider a bailout and stimulus package that compensates for the significant losses, reduces the burden of ongoing operating costs, and subsidizes the industry’s survival and recovery.”

“We also call upon international financial institutions and development partners to support Airlines with facilities that can help ensure the availability of much-needed credit and liquidity,” Mr. Berthe added.

“There is also the need to ensure passenger confidence to resume air travel. Communication with passengers on the health and safety measures in place is crucial to reassure them of a safe and sterile travel experience with appropriate measures in place,” Mr Berthé added.

AFRAA’s recovery plan and High Level Task Force for the rebound of the Airline industry

Since the onset of the crisis, AFRAA whose mission is to serve African Airlines and champion Africa’s aviation industry has taken various initiatives to ensure the sector’s resilience to the pandemic and for post recovery efforts. Key among these initiatives is the AFRAA recovery plan that defines a framework of various areas of intervention measures to be taken as part of urgent, immediate, and consistent actions for the survival and rebound of the industry.

AFRAA is also working closely with leading aviation industry organizations under the framework of the High Level Task Force that is undertaking various actions to ensure that the African civil aviation industry is well positioned on a strong trajectory for recovery during and post COVID-19.

To access the Impact Assessment, please click here: http://afraa.org/wp-content/uploads/2020/06/CoVID-19-Impact-assessment.pdf

To access the Press Release, please click here: http://afraa.org/wp-content/uploads/2020/06/AFRAA-releases-COVID-19-impact-assessment-on-Africa.pdf

L’AFRAA élabore un plan de relance COVID-19 pour l’industrie du transport aérien en Afrique

En soutien à ses membres dans ces circonstances exceptionnelles de la pandémie COVID-19, l’AFRAA a organisé un webinaire dans le cadre des actions urgentes, immédiates et cohérentes visant la survie de l’industrie. Le webinaire, qui avait pour thème « Naviguer en pleine pandémie COVID-19 et se préparer à la reprise d’après-crise », a permis à l’AFRAA de documenter les précieuses contributions des compagnies aériennes qui font partie du plan de reprise de l’AFRAA pour la relance de l’industrie aérienne.

Le Secrétaire général de l’AFRAA, M. Abderahmane Berthe, a déclaré : « Le monde subit les effets néfastes de la pandémie du Coronavirus (COVID-19) et l’industrie aéronautique se trouve être l’un des secteurs les plus touchés. L’Association des compagnies aériennes africaines est solidaire avec le reste du monde dans ses efforts de collaboration visant à soutenir l’industrie du transport aérien en ces temps difficiles. »

Il a ajouté que pour que les économies africaines se redressent, une industrie aéronautique dynamique s’avère cruciale au regard du rôle important que joue le secteur en matière de développement économique et social.
Un certain nombre d’experts en la matière ont fait des présentations sur la manière dont les compagnies aériennes africaines peuvent créer et mettre en œuvre leurs plans de relance dans des domaines tels que le repositionnement de la flotte et du réseau, les questions de financement et de trésorerie, les tendances en matière de carburant et les mesures d’efficacité énergétique, entre autres.

Depuis le début de la crise, l’AFRAA a pris diverses initiatives à ce jour et travaille en étroite collaboration avec les principaux partenaires et institutions du transport aérien afin de trouver des solutions pratiques pour assurer la résilience du secteur à la pandémie et pour entreprendre les efforts de rétablissement après la crise.

En collaboration avec la Commission Economique des Nations Unies pour l’Afrique (UNECA), l’AFRAA mène actuellement une enquête pour quantifier l’impact du COVID-19 sur les compagnies aériennes africaines. Les résultats feront partie des contributions aux efforts de lobbying de l’AFRAA visant à obtenir un soutien financier de la part des gouvernements aux compagnies aériennes africaines.

Les compagnies aériennes et les parties prenantes au webinaire ont souligné la nécessité de mener des efforts coordonnés et d’avoir une approche collaborative pour assurer la durabilité du secteur du transport aérien dont les opérations ont été gravement touchées par la pandémie. Le webinaire s’est achevé avec l’élaboration d’un plan de relance qui a défini un cadre d’actions devant être menées par l’AFRAA en collaboration avec les différentes parties prenantes.

AFRAA
L’Association des compagnies aériennes africaines, également connue sous l’acronyme AFRAA, est une association professionnelle de compagnies aériennes des États membres de l’Union africaine (UA). Fondée à Accra (Ghana) en avril 1968 et ayant son siège à Nairobi (Kenya), l’AFRAA a pour mission de promouvoir et servir les compagnies aériennes africaines ainsi que de défendre les intérêts du secteur de l’aviation en Afrique. L’Association envisage l’existence d’un secteur du transport aérien viable, interconnecté et abordable en Afrique où les compagnies aériennes africaines deviennent les principaux acteurs et moteurs du développement économique.

Les 45 compagnies aériennes membres de l’AFRAA proviennent de l’ensemble du continent et englobent tous les principaux opérateurs intercontinentaux africains. Les membres de l’Association représentent plus de 85% du trafic international total transporté par les compagnies aériennes africaines.

AFRAA SG presents keynote speech at 5th Aviation Africa Summit and Exhibition

AFRAA Secretary General, Mr. Abdérahmane Berthé, gave a keynote speech on ‘Better Skies for Africa -Outpacing global growth as African airlines evolve’ at the 5th Aviation Africa Summit and Exhibition in Addis Ababa, Ethiopia.

Citing connectivity as one of the major challenges for Africa’s aviation industry Berthé said: “Currently 22% of Africans travelling between two cities on the continent are forced to travel through non-African hubs, often transferring in Europe or the Middle East. However, this situation can be reversed through network development and scheduled coordination at African hubs.”

With the African continent three times larger than Europe in terms of land mass and a population that’s 2.5 times bigger, Berthé added “air transport activity in Europe is 11 times higher than in Africa.” This he said was in part due to “the average air fare in Africa (including taxes) costing double the fares on equivalent distances travelled in Europe.” Subsequently “air transport is simply not affordable for many African citizens,” he added.

So, how do we achieve better skies for Africa? “It will require a massive transformation from stakeholders across the industry to push boundaries and think outside the box. With passenger numbers projected to double over the next 20 years, this growth will only be realised if the regulatory environment is conducive,” Berthé said.

“The implementation of SAATM will result in enhanced connectivity, and reduced journey times as well as lower airfares. Additionally, the African continental free trade agreement and the free movement protocol for people and goods will increase intra-African trade. New routes will emerge and connectivity will improve.”

Concluding his keynote, Berthé stated: “A successful and viable African aviation industry requires concerted efforts and collaboration from governments, regulatory authorities, airlines, airports, ANSPs, suppliers of aviation products and services and of course the passengers themselves.”

Find out more: https://bit.ly/2IoAVeB

#avaf20 #aviationafrica #BetterSkiesForAfrica

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