Malawi Transport Minister Chides SAA Over Abrupt Flight Halt
But SAA justified its risk calculation, saying, "As a small but growing airline, we cannot commit to routes that are not financially sustainable.”
LILONGWE, Malawi— A top Malawian official has rebuked South African Airways leadership over the abrupt cancellation of the airline’s newly reinstated Malawi service, citing currency volatility and forex shortages, writes Esther Banda.
Transport Minister Jacob Hara said the unilateral move came despite SAA resuming Lilongwe flights not long ago, while conditions were arguably more challenging before recent exchange rate adjustments aimed at easing chronic foreign currency deficits.
“It’s a bit disappointing for Malawi considering that SAA had just resumed their flights to this country, and by that time, the economic status and forecast for the nation as far as forex is concerned were more challenging than they are now,” Hara said.
The minister said while devaluation hurts consumers, SAA will continue collecting fares abroad while locals bear the brunt. He suggested discussing options before halting service.
“In business, sometimes you win and sometimes you lose. You just make sure you win a lot more than you lose but it’s a pity and disappointment that we never had time or a chance to talk,” Hara said.
State-owned SAA only returned to the Malawi market in September after exiting during the southern African country’s two-year pandemic lockdown.
SAA CEO John Lamola said flights will again cease by month’s end, citing “acute shortages of foreign currency” along with the kwacha’s sharp depreciation against the Rand, making operations untenable.
Hara indicated devaluation became unavoidable for Malawi to boost forex flows, arguing the airline should show commitment towards the route and weather near-term turbulence.
Economic analysts have backed the reserve bank's adjusted exchange regime despite short-term pain, saying previous overvaluations created chronic external imbalances and shortages.
International lenders urging curbing imports have unlocked budget support resuming this month.
But SAA justified its risk calculation, saying, "As a small but growing airline, we cannot commit to routes that are not financially sustainable.”