Comair, which operates British Airways and Kulula in SA, has decried the lack of government support and engagement before the implementation of tighter lockdown restrictions that have hampered the airline industry’s recovery efforts.
On Tuesday, Comair announced that its aircraft will remain grounded due to the health crisis and subsequent restrictions. The airline operator, which initially suspended flights two weeks ago with a planned return date of July 30, said taking the potential variables into consideration, it now plans to resume scheduled operations on September 1.
“Without government engagement with or support for the aviation sector and associated services the ability to plan constructively for a meaningful service beyond July 30 is exceptionally challenging,” Comair said.
President Cyril Ramaphosa moved the country to the highest level of lockdown since the early days of Covid-19 pandemic two weeks ago to stop the third wave of Covid-19 from overwhelming hospitals. On Sunday, the president announced that the restrictions would be extended for a further two weeks, which will hit the liquor, leisure, travel and tourism industries the hardest.
The airline and tourism industries, which have been struggling since the beginning of 2020 when SA moved to its first lockdown, have been hard hit by the tight curfew and the continued ban on leisure travel to and from Gauteng, the country’s economic hub and the epicentre of the third wave.
The restrictions also mean that government plans to resuscitate SAA, the grounded national carrier, will be dealt a heavy blow. Takatso, a consortium made up of Harith General Partners, which manages two private equity infrastructure funds, and Global Aviation, an airline leasing company, are set to take over the majority stake at the national carrier as soon as all due diligence processes have been concluded.
Relief measures
The government is under growing pressure from business and labour to urgently implement the short-term relief measures to assist companies and workers that have been left without an income due to the stricter lockdown measures.
This week, Ramaphosa said the Unemployment Insurance Fund (UIF), after discussion with labour and businesses, would extend its wage protection scheme, the Temporary Employer/Employee Relief Scheme (Ters), to workers affected by the lockdown restrictions.
The president did not provide a timeline of when funds will start flowing to workers.
Cas Coovadia, CEO of Business Unity SA (Busa), which represents organised business in the country, said affected businesses will apply for relief through the usual processes.
“We are of the view the UIF can manage an extension [of Ters payments]. We would further urge Nedlac social partners [to] engage on a more medium-term proactive approach towards relief during the pandemic because it seems we might still be in its throes for some time,” Coovadia said.
Martin Kingston of Business for SA (B4SA), a body set up to assist the government’s response to the Covid-19 outbreak, said plans to cushion businesses and employees affected by the latest lockdown measures are being finalised by the department of employment & labour.
“We are concerned that it has taken this long. We need to consider improving access to relief in anticipation of a lockdown,” Kingston said.
The department and UIF were yet to respond to requests for comment on Tuesday.
Alcohol sales
The latest restrictions have hit the liquor, leisure, travel and tourism industries the hardest.
While sit-ins will be allowed at restaurants and eateries subject to strict protocols, such as restricting the number of patrons to less than 50% of capacity, the sale of alcohol remains banned, which will hurt recovery efforts.
The government’s periodic bans on alcohol sales, intended to reduce the alcohol-related trauma load on hospitals and free up desperately needed resources for Covid-19 patients, have left the liquor industry reeling.
The industry is fighting the fourth liquor ban in court, with SA Breweries arguing there is no scientific evidence that banning alcohol sales reduces the number of Covid-19 infections.
Welcoming Ramaphosa’s announcement that restaurants open for sit-in dining with a maximum of 50 people indoors, Western Cape Premier Alan Winde called for the ban on alcohol sales to be lifted.
“I do believe that there are further changes possible in this space, if we embrace innovation and an ‘out of the box’ thinking, and we should work with the industry to find other ways in which operations could be scaled up in a safe, well-distanced and well-ventilated environment,” Winde said.
“This innovation is also needed with the responsible sale of alcohol, which is an important revenue stream for hospitality businesses. Innovations such as allowing wine sales on wine farms and at wine cellars, and online wine sales with delivery, could help keep these businesses afloat in a safe fashion over the next 14 days. This is something the Western Cape will continue to lobby for in engagements with our national counterparts,” he said.
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