Business impact of new lockdown regulations and curfews

 Business impact of new lockdown regulations and curfews

Business impact of new lockdown regulations and curfews.

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More than a week ago, President Cyril Ramaphosa addressed the nation as it became clear that South Africa was starting to experience a second wave of the Covid pandemic. This led to additional restrictions added to the current level 1 of lockdown in an attempt to curb the spread of the virus. This, however, has not been welcomed by the tourism industry and the new regulations may also pose a threat to the aviation industry. While bars, taverns, and restaurants, considered non-essential businesses, breathed a sigh of relief, these businesses along with many others may be greatly affected with the new regulations in place, especially considering that December is the busiest month of the year.

Numerous airlines have had mass cancellations, with FlySafair one of the most affected of all. Around 30 of the airline’s flights had to be cancelled, impacting heavily on the company’s ability to generate revenue. A decision had to be made as the flight pairs were lost due to aircraft having to return to the airport so that technical checks had to be done and the aircraft had to be available for flights on the next day.

Other major airlines such as Kulula.com and British Airways in South Africa have also reported numerous disruptions in flight schedules. In addition to issues with the impact of curfews, numerous holidaymakers have cancelled their travelling plans to areas which have been identified as hotspots. The closure of numerous beaches, especially in the Western Cape, has not helped this. The Democratic Alliance (DA) approached the courts regarding this matter but unfortunately lost its bid to reopen beaches along the Garden Route. However, the Western Cape High court has granted some small concession, that Cape Town beaches may be open from 06:00 to 19:00.

Chris Louw

https://sashares.co.za/

Featured Financial Writer for SA Shares - Read more about Chris's Bio -

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