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COVID-19: EAC countries resume commercial flights
East Africa Community member states, Rwanda and Kenya on the 1st of this month opened up their airspaces to commercial flights after more than four months of lock-downs. So what kind of impact will this have on the struggling aviation sector? Derek Nseko, Aviation Industry Expert and Managing Director iFly Aviation spoke to CNBC Africa for more.
Mon, 03 Aug 2020 11:09:44 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The resumption of commercial flights in East Africa is a significant relief for the struggling aviation industry, which has faced substantial losses due to the pandemic.
- Diplomatic disputes and challenges, such as the one between Kenya and Tanzania, highlight the complexities of reopening air travel and navigating international relations in the aviation sector.
- Airlines are reevaluating their business models and strategies, focusing on diversification and adaptability to overcome the challenges posed by the pandemic and ensure post-COVID recovery.
East Africa Community member states, Rwanda and Kenya, have taken a significant step by opening up their airspaces to commercial flights after more than four months of lockdown due to the COVID-19 pandemic. This move is expected to have a positive impact on the struggling aviation sector in the region. Derek Nseko, an Aviation Industry Expert and Managing Director at iFly Aviation, shed light on the implications of this decision during an interview with CNBC Africa.
The aviation industry has been one of the hardest hit sectors during the pandemic, with African airlines projected to lose about $2 billion. The restrictions in the aviation industry also put over $30 billion of Africa's GDP at risk. In East Africa alone, more than half a million people in Kenya rely on the aviation industry for their livelihoods. The resumption of commercial flights in the region, starting with Kenya Airways resuming domestic flights on July 15th, signifies a much-needed relief for the industry.
However, the journey towards recovery is not without its challenges. Kenya Airways faced hurdles with Tanzania, as the latter was omitted from the list of countries permitted to fly into Kenya. This led to a diplomatic dispute between the two countries, highlighting the complexities of reopening air travel. Globally, the aviation industry is also witnessing significant changes, with Boeing accelerating the retirement of its 747s due to the pandemic's impact on passenger demand.
To navigate these turbulent times, airlines are reevaluating their business models and strategies. Ethiopian Airlines has emerged as a success story, leveraging its cargo operations to generate revenue during the crisis. This diversification has been crucial for airlines to stay afloat amidst the unprecedented challenges posed by the pandemic. The key to post-COVID recovery lies in adaptability and flexibility within the aviation industry.
Despite the challenges, there are glimmers of hope on the horizon. South African Airways (SAA), which was on the brink of collapse, is showing signs of resurgence with the approval of its business rescue plan. However, significant financial restructuring and job cuts are still needed to pave the way for a new and sustainable SAA.
As the aviation sector in East Africa cautiously reopens its skies, stakeholders are navigating uncharted territory with a focus on resilience and innovation. The road to recovery may be long and arduous, but the industry's ability to adapt and evolve will be crucial in shaping its future amidst the ongoing global uncertainties.
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