Withheld $1bn foreign airlines’ funds frustrating African market recovery –Walsh

The Director-General, International Air Transport Association, the Switzerland-based air transport body, Willie Walsh, speaks on the challenges and prospects of the global airline industry at the recently concluded 78th Annual General Meeting and World Air Transport Summit in Doha, Qatar. OYETUNJI ABIOYE was there

When do you think African airlines will recover?

African airlines will recover in 2023 and 2024. Looking at the momentum, full recovery will be in 2024. At the global level and as an industry, it will be in 2023 but the basis is not the same everywhere. The US is back to recovery already; the US domestic market is back to what it was in 2019. It very much depends on the market. Markets with big domestic elements are recovering faster. Russian domestic market was way ahead before 2019, before the war in Ukraine. The Chinese domestic market has been recovering strongly but obviously disrupted by the closure in Beijing. If you look at Africa, it is principally an international market and therefore, the small domestic market is picking up because of all the travel restrictions that are been removed. The recovery in Africa has seen a slower pace than in other regions in the world.

How would you react to the slow vaccination in Africa compared to the rest of the world?

We have been saying for some time that the speed of recovery has been a high level of vaccination. The vaccination in Africa has been slower than in the rest of the world. They have not been going at the same pace.

African governments have blocked international airlines from repatriating over $1bn in ticket sales proceeds. What other ways do you think airlines can get these funds from the African governments?

We are looking at ways to get these funds out. It is really having an impact on the airlines and the recovery of the market as well because airlines will be reluctant to bring capacity into markets where they can’t repatriate their money. It affects national growth and additional capacity. If you can’t get your money out, I am sorry, it is a simple business decision, you are not going to give additional capacity to the market….