Civil Aviation Authority faces financial crash if aviation lockdown goes on too long

19th May 2020 By: Rebecca Campbell - Creamer Media Senior Deputy Editor

The South African Civil Aviation Authority (Sacaa) has warned Parliament that it could survive only seven months if the national lockdown and ban on air transport (instituted to counter the Covid-19 pandemic) continued. With almost no civil flying happening, the authority was earning no income.

Should the period of the aviation lockdown total seven months, and the total number of air passengers in South Africa this financial year be about 84% lower than in the previous financial year, the Sacaa could last nine months before running out of money and needing government support. Assuming the aviation lockdown lasted just five months – and this is the authority’s “optimistic scenario” – and passenger numbers for the year were 77% down, then Sacaa could carry on for ten months.

As a result, the organisation was seeking to cut costs. Capital expenditure was being postponed for 12 months. Both local and overseas travel was being deferred. Public relations events had been postponed. Sponsorships had been suspended. Savings were being sought on aircraft maintenance costs. Human resources costs (such as recruitment, training and new bursaries) were being cut. Discretionary spending on things such as catering, consumables, stationery and uniforms was being curtailed.

The core mandate of the Sacaa was aviation safety and security. In this regard, and in the face of the pandemic, the agency was making use of “technology platforms” for the processing of licences and approvals. It had also granted extensions and exemptions regarding some authorisations, until the lockdown was lifted. When required, physical inspections were still being carried out.

The development of regulations – except for emergency regulations, should they be required – had been postponed until after the lockdown. Planned follow-up audits by the International Civil Aviation Organisation (a specialist agency of the United Nations) would also be postponed.

The Sacaa had already developed plans for the transition to lockdown Level 3, which would allow some domestic air travel. On the announcement of Level 3, it would be able to immediately supply key regulatory services to the industry. These would include the issuance of new, and the renewal of existing, pilot, aircraft maintainer, cabin crew, instructor and other licences. It would also be able to approve certificates for air operators, airports, air maintenance organisations and other key organisations.

The authority would furthermore be able to carry out all its oversight functions. It would also issue guidelines for the sector, in compliance with the regulations for Level 3 issued by the responsible Ministers.