Johannesburg — THE global slowdown and last year's record fuel prices have claimed two more victims in the airline industry, with Zambian Airways ceasing operations at the weekend and Virgin Nigeria announcing it would suspend flights to London and Johannesburg later this month.

Virgin Nigeria, which operates two weekly flights to Johannesburg and four to London's Gatwick Airport, refused yesterday to confirm that the cessation of flights was due in part to a public row between Virgin boss Richard Branson and the Nigerian government over the right to operate domestic flights from Lagos's international airport.

Several other airlines are also on shaky ground, and have reduced capacity on their South African routes.

Thai Airways has suspended its three weekly flights to Johannesburg until October.

Unrest in Bangkok last year compounded the airline's financial troubles after it was hit hard by sluggish demand and high fuel prices.

Air Mauritius, one of Africa's strongest airlines, is also on shaky financial ground after its disastrous decision last year to hedge more than 80% of its fuel requirements for the next two years -- without an escape clause -- at about $105 a barrel.

This led to a severe cash crunch, making it difficult to meet short-term commitments.

On Friday, Sanjay Bhuckory, chairman of Air Mauritius, stepped down after it emerged that the hedging decision had been made without the knowledge of the full board.

The government of Mauritius has stepped in to assist the airline financially.

Sukentha Govender, manager for Air Mauritius in SA, said yesterday that the airline was likely to cut its flights to SA, but the extent of the cuts had not yet been decided.

Govender said the decision to cut flights was based on the slowdown in the travel industry rather than the airline's financial problems.

The airline flies daily to Johannesburg and twice weekly to Durban and Cape Town.

Zambian Airways, a privately owned airline, said yesterday that its management was locked in discussions with various parties in a bid to recapitalise the airline.

The airline operated a daily flight between Johannesburg and Livingstone as well as between Johannesburg and Lusaka. Rod Murphy, chairman of African Airline Management and agent for Zambian Airways in SA, said the record fuel prices last year had pushed the airline over the edge.

The airline, based in Lusaka, was hit particularly hard by high oil prices, with fuel prices in Zambia up to 40% higher than in SA. Zambian Airways routinely had to sacrifice precious cargo space to bring in fuel from Johannesburg.

Meanwhile, Virgin Nigeria said at the weekend that the decision to suspend both long-haul services from January 27 was to enable the airline to review its long-haul operations. "In the meantime, our focus is on consolidating and continuing to expand our profitable domestic and regional flight operations," it said.

"Once the long-haul product review has been finalised, we are certain to return to the long-haul routes," the airline said.

The suspension of operations and reduction by the various airlines, particularly in Nigeria, may provide new opportunities for South African Airways (SAA), which last month announced it would be expanding its African network this year.

The bilateral air agreement between SA and Nigeria was amended recently to allow for the operation of 10 weekly flights a country a week.

"Due to the tremendous demand for seats on this route, SAA is planning to add more capacity to our current four weekly flights from April this year," Robyn Chalmers, head of SAA group corporate affairs, said yesterday.

"Demand for business-class seats is particularly high on the route. Our flights to Lagos have traditionally been very popular and we operate high-load factors on this route," Chalmers said.