South Africa: Global Slowdown and Record Fuel Prices Hit Air Travel

THE global slowdown and last year’s record fuel prices have claimed two more victims in the airline industry, with Zambian Airways ceasing operations at the weekend and Virgin Nigeria announcing it would suspend flights to London and Johannesburg later this month.

Virgin Nigeria, which operates two weekly flights to Johannesburg and four to London’s Gatwick Airport, refused yesterday to confirm that the cessation of flights was due in part to a public row between Virgin boss Richard Branson and the Nigerian government over the right to operate domestic flights from Lagos’s international airport.
Several other airlines are also on shaky ground, and have reduced capacity on their South African routes.

Thai Airways has suspended its three weekly flights to Johannesburg until October.

Unrest in Bangkok last year compounded the airline’s financial troubles after it was hit hard by sluggish demand and high fuel prices.

Air Mauritius, one of Africa’s strongest airlines, is also on shaky financial ground after its disastrous decision last year to hedge more than 80% of its fuel requirements for the next two years — without an escape clause — at about $105 a barrel.

AllAfrica