Friday, October 18, 2024

Kenya Airways flies into turbulence

Kenya Airways flies into turbulence

The following feature on Kenya Airways was first published inside the Smart Company.

“Kenya Airways suffered Sh10.451 billion loss for the half year ending September, 2014.  It doesn’t help Kenya Airways that the new competitors are said to be receiving huge subsidies from their governments. Three top US airlines accused Dubai’s Emirates, Abu Dhabi’s Etihad Airways and Qatar Airways two weeks ago of receiving subsidies from their governments amounting to $42 billion (Sh3.9 trillion).

Similarly, the latest increase in flight frequency in Africa by the powerful Middle East carriers will be adding to the headache of dwindling tourist numbers to the country that has poured cold water to the new engines of the country’s flag airline.

Co-Op post

Last week, Dubai-based carrier, flydubai said it would increase its flights in Africa to 78 per week. The airline, which doubled its Africa routes last year, will have 12 touch points in East and North Africa. The latest destinations are Alexandria, Bujumbura, Juba and Zanzibar. This has seen its passenger numbers in Africa shoot up by 14 per cent. Flydubai chairman His Highness Sheikh Ahmed Bin Saeed Al Maktoum said the airline’s strategy this year is to increase flights, especially in the underserved routes in Africa.

Dubai’s Emirates has also brought the battle to the doorstep of the troubled Kenya Airways when it announced plans to connect more people with Kenya’s capital, Nairobi, by switching from the current Airbus A330-200 aircraft used in one of the two daily flights to a larger Boeing 777-300 ER starting May 1.

Abu Dhabi’s Etihad Airways and Qatar Airways have also been increasing their touch points in Africa. The latest plan by the giant Gulf carriers means a fresh headache for Kenya Airways.

NCBA


The waning fortunes of Kenya Airways could have prompted the government to move in to keep it afloat. Early last month, an inaugural aviation workshop held at the KQ Pride Centre to supposedly deliberate on the way forward for the local industry turned out to be a strategy to whip up all government officers to fly KQ.

Government efforts to lift Kenya Airways out of trouble are not new. Qatar Airways’ application for licence to be the third foreign airline to fly to Mombasa from August 2013 failed over what was said to be traffic right issues.

In 2012, the Doha-based airline’s application to fly to Kilimanjaro via Nairobi was not permitted by Kenyan authorities. Last year, Fastjet’s plans for a low-cost flight business in the country faced clearance delays from Kenya’s aviation authorities following objections from local airlines including Kenya Airways. The resistance could have been motivated by the fact that Fastjet was likely to give KQ’s budget carrier, JamboJet, a  run for its money. Jambojet flies Mombasa, Eldoret, Nairobi and Mombasa routes that Fastjet is also eyeing

However, not all is lost for Kenya Airways. Kenya Airways may well use partnerships with other airlines to boost its dwindling passenger numbers, which is one of the airline’s greatest challenges now. A plan similar to the partnership struck last year with  Delta Airlines to have seamless connecting flights to various destinations from Africa can be a big boost  for KQ.


In the partnership with Delta, Kenya Airways offers connecting flights between Monrovia, Liberia, and Accra, Ghana, operating three times a week on a Boeing KQ’s 737 aircraft.  The move is meant to bridge Delta’s nonstop flights between Accra’s Kotoka International Airport and New York’s John F Kennedy International Airport.

“Delta has had a presence in Liberia for four years and we are pleased to continue this association with the country through our new partnership with Kenya Airways,” said Perry Cantarutti, Delta’s senior vice-president for Europe, the Middle East and Africa. This service has replaced Delta’s three-time weekly operations from Monrovia’s Roberts International Airport to Accra, Ghana.  Kenya Airways therefore benefits from the Delta’s 165 million passengers carried yearly.

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