CAAB averts shutdown, airspace closure
Mbongeni Mguni | Friday December 25, 2020 12:48
Government has reportedly stepped in to support the cash-strapped parastatal’s operations beyond December. On Wednesday, Transport and Communications minister, Thulaganyo Segokgo told Mmegi government would support the CAAB and it would not be closing.
“I am aware of the difficulties they are facing,” he said. “The closure of airports (earlier this year) meant there was no air travel which is fundamentally the basis on which they get their revenue. “So they had no revenues, close to P100,000 where normally they collect up to P7m. “We have been supporting them so that they can meet their obligations in terms of paying their fees. “We will continue to do so and find a means to support them.”
Segokgo added: “The problem is that they have always operated with a higher expenditure than what they collect, but we have given them subventions. “Now the trouble is that when the revenues fell, the subventions did not meet what they would be able to make up for the differences. “The long and short is that we are not closing our airspace.”
The minister’s remarks come after a leaked letter signed by CAAB management and the union stating that in the absence of additional funding, the two parties had decided to end operations on December 31. The decision would have meant no aircraft could land or take off in Botswana, dealing a huge blow to nearly all sectors of the economy, as well as investor confidence. “Due to its inability to pay any other wages beyond December 2020, (management is considering to) close down the whole Authority including all airports and air strips from 1st January 2021 on a no-work-no-pay basis,” the letter dated December 18 reads. “It is management’s considered view that should the Authority proceed to engage employees in work beyond 31st December 2020 with the full knowledge that it shall not be able to pay them for the work done, shall be a breach of the Employment Act. “The Authority will re-open when enough funds to run its operations are injected, or on 1st April 2021 when subvention shall be expected from government, whichever comes first.”
The letter indicates that on December 10, the CAAB received a response to its pleas to the Ministry in which the permanent secretary said the Ministry was “not in a position to assist CAAB with any financial injection”. “The letter goes on to advise/encourage management to ‘look for other avenues to address your financial requirement,’” reads the management and union letter.
Observers said while the crisis had been averted for now, the situation could potentially leave discomfort or stress among critical employees who are required to look after the country’s air safety.
Other analysts said the CAAB should be deemed a strategic organisation as it regulates aviation which in turn anchors economic activity. “How could we grow the economy by road and rail only,” an insider following the latest developments told Mmegi on condition of anonymity. “How will diamond sales be held without auctions? “Who in their right mind thinks CAAB can be allowed to close?”
On Wednesday, the CAAB released a short statement confirming it would not be closing, but not adding any details on the funding situation.
“The CAAB would like to inform all its stakeholders and customers that there has been NO decision made to close its Airports and Airstrips,” the Authority said. “The aviation sector, like any other sector of the economy continues to face financial challenges due to low traffic emanating from the restrictions on travel caused by the COVID 19 pandemic. “CAAB remains hopeful that the Aviation sector will recover, as travel restrictions are eased and with the discovery of the COVID 19 vaccine.” Government is facing a P15 billion deficit for the 2020/21 financial year due to Covid-19’s impact and has cut spending across parastatals as well as ministries, departments and projects.