Page 6 - World Airnews September 2020 Edition
P. 6

FLAREPATH





























                                  AFRICA NEEDS TO


                                  TAKE THE LEAD





                                             At Kenya Airways plans are afoot to lay off   between the two parties was for the com-


                                           1, 500 employees. This will affect 33% of the   mencement of operations by the airline

            ar from ge�ng better the situation   workforce assigned to in-flight operations,   from Katsina. Meanwhile the Nigerian






       Facross African Airlines is worsening.   ground staff, technicians, sales and across   federal Government has called for social di-

        It seems the calls by the International Air   workers in the freight and other departments.  alogue between the employers and the em-



        Transport Association for governments   In a letter to the Kenya airline pilots   ployees in the aviation industry to prevent
                                                                               job losses. Senator Chris Ngige, minister of



        to step in and offer assistance is falling   association (Kalpa) KQ acting CEO Allan   labour and employment, made the call in
        on deaf ears. What is stopping this sector   Kilavuka said the dismissal process will   the context of the sacking and subsequent

        from taking off? Leadership is needed in   begin immediately.          re-instatement of 70 pilots – who were to


        this time of crisis.                 According to internal sources, this layoff   lose their jobs with Air Peace. Minister of

         Consider the statistics released recently.   plan, which must be concluded by the end of   aviation adi Sirika intervened and it seems


        Since the last IATA assessment in April,   this month will save the carrier around 600   it was all just a misunderstanding and the
        traffic is now due to drop by 54% or more   million shillings per month or ($5.5 million),   pilots got their jobs back.



        than 80 million passengers when compared   or half of its wage bill, estimated at 1.2   And lastly on the SAA saga, the most
        to 2019. The previous estimate was for a   billion shillings.          recent development is the appointment of a


        decrease of 51%.                     Then a little nugget of good news - one of   bank - Rand Merchant Bank, the investment


         As a result job losses in aviation and relat-  Nigeria’s domestic, regional and international   banking arm of FirstRand Ltd as an adviser to


        ed industries could increase to 3.5 million.   airlines, Max Air has announced it will soon   help the government assess offers for stakes

        That is more than half of the region’s 6.2   begin direct flights to Katsina-Abuja, Katsi-  in its insolvent national airline.



        million aviation-related employment and   na-Lagos routes and to other destinations   The state is saying that it will not use its




        400,000 more than the previous estimate.  through connecting flights respectively.   own R10billion necessary to revive the dying

         IATA continues to call for a harmonised re-  This was disclosed by the vice-chairman   national airline and get it off the ground.




        start to aviation. They and other internation-  of Max Airline limited Alhaji Bishir Mangal   Instead it will seek “strategic partners’ or



        al aviation organisations have worked hard   after a follow up meeting between the   private equity backers, tapping pension


        to put together some simple but effective   Katsina state government and the manage-  funds and global financial institutions to.






        measures, health protocols – all continued   ment of the airline.       “The Department of Public Enterprises
        in the CART document – which can easily be   Max Air was supposed to start its services   has identified a transaction adviser,” the



        put together. What is the problem? Where is   from Katsina airport on April 3 but due to   ministry said in a recent statement without


        the political and social will?     the nationwide lockdown as a result of the   identifying the firm.


         The consequences are too dire to imagine   Covid-19 outbreak this was suspended.  “The advisers are expected to assess
        but as each month passes the situation dete-  An MOU signed earlier in March 2020   unsolicited expressions of interest from pri-

        riorates.                                                              vate-sector funders, private-equity investors
         Some African countries have begun to                                  and partners for a future restructured SAA.”
        open for international travel – Kenya, Rwan-                             Other reports have claimed that some

        da, Tanzania, Nigeria spring to mind – albeit                          aircraft manufacturers have been ap-

        with or without restrictions but it is not                             proached to provide a new fleet. The


        enough. More countries need to follow suit.                            estimates are that 1000 of 5000 personnel



        Airlines need to get their fleet off the ground                        will be retained once voluntary and section


        and passenger confidence must be restored.                             189 retrenchment packages processes are
         Travel can happen in a safe and corona                                complete and some of these will be the
        free manner. It’s all there.                                           new staff of the airline. Q

                                                  World Airnews | August 2020
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