Friday, April 19, 2024

Kenya ignores KQ, gives Ethiopian Airlines lucrative cargo deal

KQ vs Ethiopian Airlines: Kenya Airways is protesting after the Kenya government allowed Ethiopian Airlines to operate passenger planes grounded for the shipment of cargo from the Jomo Kenyatta International Airport ( JKIA) in Nairobi to Europe and Asia.

According to the national carrier, the new deal will give Ethiopian Airlines undue advantage at a time when Kenya has frozen international passenger travel, leaving cargo as the primary source of revenue. The cargo business gives KQ Sh. 11 billion annually.

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“On April 6, the Ministry of Transport allowed Ethiopian Airlines to vary its licence for passenger planes and use six aircraft to ferry cargo from Nairobi and Mombasa to overseas at a time when carriers are charging a premium for the service,” a report that appeared in the Business Daily on Monday said. “Kenya Airways is worried that Ethiopian Airlines will take a huge chunk of the business of shipping flowers, fresh fruits, vegetables like green beans and peas as well as meat that have become increasingly scarce in Europe as the coronavirus pandemic hampers the global movement of produce.”

“We have objected the move to have Ethiopian Airlines use their passenger flights for cargo business in Kenya because we were not consulted on the impact that this would have on our business,” the Business Daily quoted KQ chief executive officer Allan Kilavuka. “Anytime you have a carrier wanting to come to your domain, you need to be consulted so that you are not disadvantaged at your main market.” KQ vs Ethiopian Airlines.

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