SAA will suspend its service to Malawi (Lilongwe and Blantyre), effective November 30. This is due to the recent ongoing economic challenges in Malawi.
This follows a decision by the national carrier – which resumed its flights between South Africa and Malawi in March this year – to discontinue sales on November 9 due to the devaluation of the Malawian kwacha by 44% against the US dollar.
Furthermore, in an industry alert last week, SAA mentioned that it was “closely monitoring” the substantial devaluation of the Malawian kwacha, acute foreign currency shortages, and the escalation of blocked funds. This, before making the difficult decision to cancel its route to Malawi.
Many African states continue to be plagued by foreign currency shortages. In April this year, Iata highlighted that about US$1.6bn was (at that stage) being withheld from African airlines – accounting for 66% of all blocked airline funds globally. All blocked airline funds globally together amounted to US$2.4bn.
‘Carefully considered risk management intervention’
CEO of SAA, Prof. John Lamola, said the decision to cancel the route was a carefully considered risk management intervention in response to Malawi’s current economic challenges.
“This move should not be interpreted as a step back from the airline’s commitment to serving the people of Malawi and promoting trade links between South Africa and Malawi. As the new leadership of SAA – and as a small but growing airline – we cannot commit to routes that are not financially sustainable.”
He added that SAA valued its relationship with the Malawian market and thanked its customers for their understanding and continued support during these challenging times. “We will continue to closely monitor the situation. We remain open to resuming the route to Malawi as soon as the situation warrants the substance of financially efficient operations from this route,” said Lamola.