SAA says it is to suspend its services to Malawi (Lilongwe and Blantyre), saying this is “due to the recent economic challenges in Malawi”.
Last week, SAA alerted agents that it had halted sales in the country and was monitoring the situation closely, after the Malawian government’s massive devaluation of the Kwacha by 44% on November 8.
This week a communication came from the airline saying it had made the decision to cancel the route, effective from Thursday, November 30.
Malawi has been suffering acute foreign currency shortages, and airlines fear an escalation in blocked funds, as the country has a severe foreign currency shortage.
SAA CEO, Prof John Lamola, said SAA’s 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...We remain open to resuming the route to Malawi as soon as the situation warrants…,” said Lamola.
According to bbc.com, Malawi President, Lazarus Chakwera, has suspended all international travel for his government in a bid to save money. He has ordered all ministers presently travelling abroad to return to Malawi.
Fuel allowances for senior government officials have been cut by 50%. Individual income taxes are to be lowered in the next budget and civil servants are to receive an increase to assist them with inflationary price rises. The measures are intended to remain in place until the end of March 2024.
Malawi had been trying to secure an IMF loan to boost its floundering economy as devastation by a cyclone earlier this year takes its toll, post COVID, and, according to bbc.com, the IMF has now approved a four-year credit facility worth $174m (R3,2bn), just days after the Malawian government devalued the currency by 44% on November 8.
