RwandAir: Pandemic offers new chance to gain market share

Yvonne Manzi Makolo, CEO of RwandAir, says that the company, now 49% owned by Qatar Airways, is looking beyond the pandemic to exploiting Africa’s huge aviation potential.

How has the Covid-19 pandemic affected your expansion plans and your medium- to long-term strategy?

We had a lot of momentum in the lead-up to the pandemic. We were expanding and had 29 routes running and more planned, both within and beyond Africa, but when Rwanda went into lockdown, we had to shelve most of these plans.

Rwanda closed off its airspace to commercial flights between March and August 2020, so we had to ground our fleet and re-evaluate our business model. The government of Rwanda has taken the pandemic very seriously, but has been very supportive of affected businesses, including those in aviation. Our staff were considered front-line workers, so we were able to get everyone vaccinated quickly.

We were able to operate cargo-only flights to support the export sector, as well as bringing in medical supplies like PPE. We converted our cabins to allow us to transport high-value exports like avocados, chillis, French beans, and flowers to lucrative markets in Europe and the Gulf.

We also carried out several repatriation flights, mainly to and from Europe, North America, and China, not just for Rwandans but also for citizens of other Central African counties.

By the time we resumed commercial flights in August 2020 we had shrunk our network to remove less profitable routes, including to Senegal, Juba, and Tel Aviv, which have still not been restarted.

Unfortunately, we were also forced to lay off some staff, though we have started rehiring them now. We had to cut back on in-flight services to focus more on safety and security procedures, which was obviously our priority.

We were on the road to recovery when the Omicron variant was recognised in December 2021, which was peak travel season. That knocked us back again as we had to stop all our Southern African routes, as well as major long-haul flights, to London and Dubai for example.

Now that the Omicron outbreak is being managed things are once again picking up and we are seeing increased passenger numbers. We hope to see consistent improvements between now and the 2022 summer season.

Covid has created challenges, but also opportunities, with SAA’s privatisation and Kenya Airways restructuring its network. How is RwandAir planning to fill new gaps in the market?

We had to pull out of some of our own routes, which other airlines are now eyeing, while we are looking at moving into new routes that have become available and which fit with our location and model.

Africa was already underserved and less connected than it should be, so there are lots of opportunities for airlines to gain market share at the moment. Even during the pandemic, we opened a few new routes.

These included Bangui (CAR), and Goma and Lubumbashi (DRC), which have been doing extremely well since we opened them in 2021. So, we are still working towards our objective of connecting Africans with each other and with the world.

In 2020 it was announced that Qatar Airways was purchasing a 49% stake in RwandAir. What is the state of negotiations, and how will they help RwandAir establish itself as a global airline?

Commercial initiatives, such as codeshares, between RwandAir and Qatar Airways were agreed upon in September 2021 and have been operation since December 2021. These have linked Kigali’s air transport hub with that of Doha, which allows us to expand our network significantly.

We can now reach most of Eurasia, while Qatar can reach most of Africa. Travellers can earn and exchange air miles between loyalty schemes, while we have access to Qatar Airways’ training facilities for pilots and cabin crew.

Qatar Airways has also purchased a 60% stake in Rwanda’s Bugesera International Airport. How does this arrangement benefit both Qatar and Rwanda?

The joint venture is still being worked out but is probably a few months away from being finalised. This will give Rwanda a large, modern airport, which is central to our plans to make Rwanda a transport hub, as well as Qatar’s plans to service the African continent. This will allow Rwand­Air to expand and allow the economy to benefit from ripple effects such as tourism and job creation.

It’s a massive project, around 25km outside Kigali, that is set to grow into an “airport city”, with housing, hotels, and entertainment centres, which presents a world of opportunity to local businesses. The first phase is set to be completed in 2024-25, which will give the airport a capacity of 7m passengers.

The second phase will expand on that, but details are yet to be finalised. The whole project is a good example of the government’s preferred private-public partnership (PPP) model, and there will be opportunities for further PPPs in everything from construction to service provision as the project advances.

How is RwandAir embracing innovation to attract customers and establish itself in the international market?

We are always looking for ways to make travel easier, add value and differentiate ourselves from the competition. We have invested in digitising and automating a lot of things, such as online sales and online check-ins, which has actually been helped by the pandemic and the emphasis that was put on getting things done remotely.

Qatar Airways has always been on the front line of innovation, and Rwanda is a very IT-focused country, so the deal between the two will let us complement each other’s innovative spirit perfectly.

How important is the African Continental Free Trade Agreement (AfCFTA) to Rwand­Air, and what is your role in the promotion of African trade?

The finalisation of AfCFTA will be a game-changer as it will force change across the continental economy, including in aviation. It will become impractical to operate a free trade area without broad “open skies” agreements, inclusive visa policies, and other provisions that will make it easier for people to use our services.

At the moment many barriers still exist across Africa, including complicated visa procedures, inconsistent infrastructure, a lack of ground handling facilities, prohibitively high airport taxes, and unmaintained or unlit runways, all of which have to be addressed before Africa can develop a sustainable and affordable aviation industry.

For AfCFTA’s benefits to be felt in full, governments need to look at the continent holistically and address some of these bottlenecks so that aviation isn’t a limiting factor.

As Rwanda becomes a regional centre for sport, tourism, and the MICE (meetings, incentives, conferences and exhibitions) segment, while promoting travel-friendly policies at home and abroad, AfCFTA presents Rwandans, RwandAir, and our partnership with Qatar with the opportunity to play a crucial role in Africa’s future.

Source: African Business

Ethiopia: Legendary Ethiopian Airlines CEO Tewolde GebreMariam quits after 37 years

The long serving CEO of Africa’s largest airline Ethiopia Airlines has stepped down, citing ill health. Starting at the firm in 1985, he become CEO in 2011. He leaves behind a strong legacy, the envy of other African airlines who struggle to match Ethiopian’s operational efficiency.

Less than 24 hours after the announcement of the resignation of Tewolde GebreMariam, the CEO of Asky Airlines in Togo, Mesfin Tasew, has been appointed to take over as head of Ethiopian Airlines.

His appointment on 24 March, follows the resignation of Tewolde GebreMariam, who took early retirement on March 23 for health reasons.

Tasew will be responsible for the continent’s leading airline, with 130 aircraft covering 120 destinations worldwide.

Tewolde GebreMariam is a towering figure of African aviation, dragging Ethiopian Airlines through a profound modernisation process, and running the state-backed company profitably, in comparison to many continental peers.

“I pay tribute to the work of a man who has led Africa’s largest airline for over 11 years”, says Abdérahmane Berte, head of the African Airlines Association (AFRAA).

“Under his leadership Ethiopian Airlines became the largest African airline. A position maintained for many years”, he says. “For the sake of history I also note the important role of Ethiopian Airlines as one of the founding companies of AFRAA.”

Ethiopian Airlines tripled its fleet under Tewolde GebreMariam’s watch, from around 40 when he took over as CEO in 2011, to 120 today.

Turnover also grew from $1.3bn in 2011 to $3.9bn in 2019-2020. And Ethiopian’s Addis Ababa hub now flies to 120 destinations, compared to 80 in 2010.

While the Covid-19 pandemic has had a huge impact, kicking a billion-dollar hole in the budget, Ethiopian Airlines has managed to be operationally flexible, refitting several passenger planes into cargo carriers, the fruit of a long-started diversification exercise.

Ethiopian Airlines was the continent’s fifth largest carrier, after South African Airways, Egyptair, Royal Air Maroc and Kenya Airways. But post pandemic, thanks to this agility — and the decline of other carriers — it finds itself Africa’s biggest as measured by turnover in our exclusive ranking of Africa’s Top 500 Companies.

“Ato Tewolde was a game changer in African aviation. He bumped Ethiopian Airlines into the new century with a solid and steady hand, expanding the airline in terms of scope and profits beyond what was thought possible in Africa”, says one African aviation expert who asks not to be named. “His agility was apparent in Ethiopian’s stunning quick turn once the pandemic decimated passenger traffic by quickly converting passenger aircraft to freighters, earning the awe and admiration of business leaders worldwide. Honestly his handling of ET during Covid was spectacular.”

“I have already retired due to ill-health & the resignation I submitted to the gov’t was accepted”, Tewolde told Ethiopia Check.

The news was broken by local news outlet the Addis Standard.

Source: The African Report

KQ to start daily flights to India on easing of curbs

Kenya Airways will now fly daily to India after the Asian country lifted the restrictions that had limited the national carrier to three flights a week, coming as a major boost to the airline that is struggling financially.

KQ, as the carrier is known by its international code, has been operating flights to India under a special arrangement normally referred to as ‘air bubble’ in aviation and which also limited the number of passengers to 400 a week.

The carrier, which resumed flights to India in September last year after it had stopped flying to the Asian country on April 2021, will also be making ten weekly flights to India starting April, coming as a major relief to passengers seeking to travel to the country.

“We are excited and ready for take-off to Mumbai with daily flights from March 28, 2022, and ten weekly flights from April, 17,” said KQ in a notice to its customers.

India has now opened its airspace to the national carrier as cases of Covid-19 in the country continue to decline.

The additional frequencies to Mumbai come just days after KQ cut frequencies to some of its destinations and stopped the launch of new routes citing declining demand for passengers.

A large number of patients from Kenya travel to India every year for specialised medical treatment, especially cancer care, helping to drive medical tourism in the densely populated country that boasts relatively more affordable healthcare.

Kenya Airways has postponed the launch of flights to Italy even as it suspended its operations to Cameroon due to low demand for passengers.

The national carrier was to start flying to Rome and Milan in June but it says the plans have been put on hold due to lower demand than it had earlier projected.

According to the initial schedule, KQ was to operate two weekly flights on Wednesday and Sunday using a large capacity aircraft Boeing 787 Dreamliner.

KQ re-introduced flights to Rome in 2019 after a seven-year hiatus, banking on increased traffic between the two continents and a new link in Geneva to boost its earnings.

Source: The East African

US downgrades Kenya Covid travel alert on vaccines, low infections

The US has eased travel restrictions on Kenya in the wake of declining cases of Covid-19, offering a boost to the East African nation’s recovering tourism sector.

Kenya has been moved to level one from level three, which requires US citizens to avoid all non-essential travel to a destination and reconsider any planned travel.

The downgrade to level one is set to boost summer bookings from a country that accounted for the largest share of foreign visitors to Kenya last year at 136,981.

Kenya’s tourism industry has started to pull out of its deep Covid-19-induced slump as local travellers take advantage of lower prices, but foreign visitor numbers are still well below pre-pandemic levels.

The US’s latest advisory follows a sharp decline in infections and hospital admissions in recent weeks, which made the Kenyan government to relax coronavirus restrictions, lifting requirements for compulsory wearing of face masks in open places and ending quarantine measures.

“The Centers for Disease Control and Prevention (CDC) has issued a Level 1 Travel Health Notice for Kenya, indicating a low level of Covid-19 in the country,” says the US embassy in Nairobi. “Your risk of contracting Covid-19 and developing severe symptoms may be lower if you are fully vaccinated with an FDA authorised vaccine.”

Kenya’s positivity rate — the proportion of tests coming back positive — stood at 0.3 percent on Monday compared to a peak of 37.6 percent on December 27.

The lower infection rates come on the back of increased inoculation against Covid-19, with 7.93 million Kenyans fully vaccinated, up from 3.93 million on December 27.

Kenya’s tourism is expected to record increased numbers in the next two months as visitors from western countries troop in for summer holidays. Kenya expects tourism, typically one of its top sources of foreign exchange, to earn Sh173 billion this year, up 18.5 percent from last year, the government said.

Earnings slumped to Sh88.6 billion in 2020 as governments around the world restricted the movement of people, including through the closure of airspaces, to curb the spread of the coronavirus.

They bounced back to Sh146 billion last year, with the number of hotel nights occupied by Kenyan travellers doubling during the period.

Local resorts, which normally concentrate their marketing efforts on foreign tourists, were forced to turn to the domestic market by the pandemic, offering cut rates to entice holidaymakers.

Foreign visitor numbers were still sharply lower than pre-pandemic levels, at just under 870,500 last year against two million in 2019. They are forecast to reach 1.03 million this year.

The drop in earnings in the sector from foreign tourists has contributed to a sharp fall in the local currency, which is trading at all-time lows against the dollar.

Source: Daily Nation

Kenya’s ranking as conferencing hub improves on higher arrivals

The Kenya National Convention Bureau (KNCB) has reported improvement in the country’s profile as a Meetings, Incentives, Conference and Exhibition (MICE) destination owing to sustainable and legacy meetings industry.

KNCB National Coordinator and CEO Ms Jacinta Nzioka said conferencing facilities have greatly improved with cities and major towns such as Nairobi, Mombasa, Kisumu and Eldoret now having more establishments.

Their conferencing facilities now match the needs of the MICE business market.

Latest report on tourism trends showed that holiday trips lead the pack with 226,168 international victors representing 34 per cent of all arrivals.

Those coming for business and MICE increased to 178,799 or 27 per cent of the total arrivals, which analysts say is a boost to tourism.

With Nairobi being ranked number one by the World Travel Awards (WTA), Kenya has hosted various international conferences in the recent past – showcasing its capability to host high-end events.

Ms Nzioka said brand ‘MeetInKenya’ has been buoyed by the nation’s membership to regional economic blocs coupled with its strategic geographic location.

The country is a gateway to East Africa with over 135 million people and the Common Market for Eastern and Southern Africa (Comesa) market with over 450 million people.

Kenya is also a beneficiary of several preferential trade arrangements such as the African Growth and Opportunities Act (Agoa) and the new Africa Caribbean and Pacific-European Union (ACP-EU) as well as the Economic Partnership Agreement (EPA) that gives duty free access to the EU among others.

Ms Nzioka said in a statement that the State is working with other key industry stakeholders to improve conferencing opportunities.

“From a global perspective, health and hygiene continues to be at the forefront of travellers concern, so we continue to implement the latest suggestions provided by healthcare leaders, such as the Centre for Disease Control and Prevention and World Health Organisation, which has seen higher guest confidence,” she said.

‘’There has been a huge growth noted within the local MICE sector, in line with the Ministry of Tourism’s change in policy that has allowed the sector to drive and sustain local events and meetings that have supported the recovery in the last 24 months.” She said such events include The Magical Kenya Open Golf tournament, WRC Safari Rally Kenya among others.

These have seen local investors sustain the MICE sector and in turn attracting global tourists on a short-term, mid-term and long-term basis.

Kenya recently hosted events such as the Fourth Africa Labour Law Society Conference, AGRF 2021 Summit, Jumuiya Agribusiness and Blue Economy Investment Conference 2021, The Magical Kenya Golf Tour, Africa Health Business Symposium Africa Tech Summit among others.

Source: The Standard

African airports offer new opportunities for investors

The unprecedented demand for airport capacity to handle essential cargo such as temperature-sensitive pharmaceuticals and Covid-19 vaccines over the past two years of the Covid-19 pandemic exposed the massive shortage of airport infrastructure in Africa.

Even among major airport hubs in various parts of Africa, passenger and cargo figures have overwhelmed available capacity or would do so in the near future. This poor capacity restricts African airports’ growth and associated revenue. In response to this challenge, Ethiopian had increased the existing Bole International Airport capacity from seven million passengers per annum capacity to 22 million capacity. In addition, Ethiopian Airlines a few years ago announced plans to build a $5 billion massive airport in Addis Ababa, to complement the existing Bole International Airport and accommodate fast-rising passenger and cargo traffic. The airport would cover an area of 35 square kilometers and accommodate 100 million passengers annually.

Agreeably, this lack of airport capacity in Africa represents investment opportunities for investors. Transit sheds, cold stores, specialized freight consolidation centers, and e-warehousing, among others, present good investment opportunities all over the continent. Daniel Eckstein, Business Development Manager Middle East, and Africa of Munich Airport International (MAI) – Munich Airport’s international business subsidiary, said African airports and investors have opportunities to create airport cities, business parks, or free trade zones in order to tap further non-aviation revenue potential.

On the landside too, African airports could diversify revenue streams with shopping, restaurant, hotel, and conference centers, office leasing for international companies, rental events spaces and construction of a smart city in form of the cross-industry innovation centre, among other businesses.

Leading from the front Currently, a number of African airports and airport authorities are already developing or executing future expansion plans to meet crucial current and future demand, ensure steady growth and development of their airports, and contribution to their economies. The Kenya Airports Authority (KAA), which refers to itself as “the largest air freight service provider in Africa”, is implementing its Air Cargo Strategy 2019-2022 to drive cargo development.

At Isiolo International Airport, KAA says cargo handling sheds have been completed to take care of the export of agricultural produce and Miraa. Construction of a modern transit shed is underway at Mombasa’s Moi International Airport, and a new cold storage room and specialized consolidation area will form part of the upgrade planned for the airport. Kisumu is being positioned to attract massive trade and investment in its Great Lakes region.

Early January 2022, Kisumu Airport announced its first cargo flight to international markets on Kenya Airways. “Local and international investors are attracted to Kisumu International Airport due to its multi-modal transportation capabilities and proximity to the Kisumu Port, the ICD, and the modern road network,” KAA states. KAA is also in the process of modernizing and expanding Eldoret International Airport’s transit sheds to handle more cargo “as we envisage increased airfreight activity, both local and international.”

Cameroun recently announced infrastructure improvement inaugurated at the Yaounde-Nsimalen International Airport including the Emergency Operations Centre (EOC), the patrol road, the rehabilitation of the security fence, and the Yaounde-Nsimalen International Airport ring road. Sierra Leone also reported efforts to improve safety at its airports. Jack Massaquoi, General Manager of Sierra Leone Airports Authority (SLAA), says the Sierra Leone Airports Authority wants to keep first responders on their toes and to always stay cognizant of their safety roles. For Seychelles airports, they have a “strategy to proactively pursue innovative business ventures to provide more diverse services for our customers.”

Public-private partnership Partnerships are vital to reposition African airports to meet the current and future needs of airport users including airlines, tourists, and business meetings. Public-private partnership is instrumental to the development of Kenya airports, and this offers the solution to develop Africa’s remote airports where agriculture and other primary produce are generated.

In West Africa, Nigeria’s move to concession its major international airports in Kano, Port Harcourt, Abuja, and Lagos could be a first step towards positioning the country’s airports to benefit from the air transport and trade liberalization in the continent. Without the intrigues and controversies that marred previous concessions in Lagos, Nigerian airports development could be another example for other African airports to toe their line.

Airline-airport synergy Both Kenya and Ethiopian Airports expansion are significantly driven by their well-established national carriers, Kenya Airways and Ethiopian, respectively, which spearhead cargo and passenger traffic to the airports. Other African states could drive their airports expansion relying on traffic from privately-owned domestic or regional African airlines, which have now been empowered to fly into airports on the continent unfettered by the glorious Single African Air Transport Market (SAATM) established in 2018.

About 35 states have signed the SAATM, so airlines from these states are expected to explore the airports in these states and the high volume of trade is expected to ensue from the operationalization of the complementary African Continental Free Trade Area (AfCFTA) launched continent-wide in January 2021. Under the new SAATM and AcfCFTA environment, there must be robust collaboration and partnerships between African airlines and African airports. This also presupposes that African airports must intensify their non-aeronautical revenue drive which would enable these airports, in turn to reduce emphases on charges on airlines. Most African airports operate far below 50 percent of non-aeronautical revenue.

Ethiopian Airports, for instance, is showing good example in non-aeronautical revenue development, with its luxury Skylight Hotel that offers 373 guest rooms and conference hall for 2500 guests, being the biggest hotel in Addis Ababa. Targets and timelines The examples of multi-year development plans by Kenya Airports Authority, Ethiopian Airports, and Airports Company South Africa (ACSA) have clearly demonstrated benefits. The 2010 World Cup in South Africa enabled ACSA develop especially the Johannesburg airport to accommodate the traffic resulting from the event and future traffic.

Setting airport expansion and development targets would enable African airports measure their direction, as well as growth achieved within a given period. It will also guide the private sector investors and concessionaires to expedite action in areas of immediate need. Most importantly, Africa is still providing less than two percent of global air traffic; thus, setting a realizable target of 5-10 percent of global market share over the next 5-10 years is a project all African airports should strive towards, as a priority. Synergize with cargo value-chain Aviation cannot develop in a silo.

Airports development stakeholders must collaborate with especially cargo sources such as the agricultural sector and the transport and packaging value-chain to develop and facilitate acceptable products and package standards for movement by air. This would reduce spoilage and economic losses associated with movement of perishable agricultural and other products by poor road networks over long distances in Africa. Embrace technology and e-commerce Africa’s 1.3billion population has remarkably the youngest population that is also largely immersed in mobile technology and e-commerce. African airports should realign accordingly and adopt new airport technology to enhance customer experience, and further explore the fast-rising e-commerce industry.

E-commerce should be a key feature among businesses in the evolving Free Trade Area in Africa which is designed to drive massive trade activities within Africa. The current traffic trend mired by the Covid-19 pandemic could make short-term traffic projections rather difficult. The International Civil Aviation Organization (ICAO) says “Africa and the Middle East recovering moderately, until Africa plunged again due to Omicron restrictions.” In fact, Ali Tounsi, secretary-general of Airports Council International Africa Region (ACI-Africa), says that cargo is now one-third of the airline business; and it is hoped that air cargo can grow even further with the advent of the African Continental Free Trade Area, e-commerce and the linkages to manufacturing facilities and Special Economic Zones (SEZ).

Despite this challenge, 2022 presents a window of recovery for African airports and investors to take the better option of planning and executing for the immediate- and longer-terms, given that the pandemic would become better managed to unstop reopening of borders and flow of air traffic to African airports.

Government must take responsibility According to Tounsi, African airports are controlled nearly 90 percent by governments. This puts the responsibility of driving the evolution of African airports on the governments. Governments must, in turn, create the enabling environment that attracts private investors, including airport-airline partnerships. African governments must take responsibility to ensure that African airlines are supported – under a robust Dispute Settlement Mechanism of the SAATM – to drive cargo and passengers to African airports, including airports with huge cargo potentials. Foreign airlines are already positioned to take away the opportunities emanating with the AfCFTA, with Qatar Airways relishing prospects of cargo from Nigeria’s Kano International Airport.

Source: Logistic Update Africa

China imposes new curbs amid worst COVID outbreak in two years

China has placed about 17 million residents under lockdown, as virus cases doubled nationwide to nearly 3,400 and anxiety mounted over the resilience of its ‘zero-Covid’ approach in the face of the worst outbreak in two years.

The southern tech hub of Shenzhen – home to about 13 million people – told all residents to stay at home as it struggles to eradicate an Omicron flare-up linked to the neighbouring virus-ravaged city of Hong Kong.

The lockdown and a suspension of public transport will last until March 20, a city government notice said, adding that it would launch three rounds of mass testing.

A nationwide surge in cases has seen authorities close schools in Shanghai, China’s biggest city, and lock down northeastern cities, as almost 18 provinces battle clusters of the Omicron and Delta variants.

The city of Jilin – centre of the outbreak in the northeast – was partially locked down on Saturday, while residents of Yanji, an urban area of nearly 700,000 bordering North Korea, were confined to their homes on Sunday.

China, where the virus was first detected in late 2019, has maintained a strict “zero-COVID” policy, enforced by swift lockdowns, travel restrictions and mass testing when clusters have emerged.

But the latest flare-up, driven by the highly transmissible Omicron variant and a spike in asymptomatic cases, is testing the efficacy of that approach.

Zhang Yan, a Jilin health commission official, conceded that the response from local authorities had been lacking.

“The emergency response mechanism in some areas is not robust enough,” he said at a press briefing on Sunday.

“There is insufficient understanding of the characteristics of the Omicron variant … and judgement has been inaccurate.”

Residents of Jilin have completed six rounds of mass testing, with the city reporting more than 2,200 cases of the Omicron variant since Saturday.

The neighbouring city of Changchun – an industrial base of nine million people – was locked down on Friday, while at least three other small cities have been locked down since March 1.

The mayor of Jilin and the head of the Changchun health commission were dismissed from their jobs on Saturday, state media reported, in a sign of the political imperative placed on local authorities to contain virus clusters.

COVID-zero?

But the strain is showing, with officials increasingly urging softer and more targeted measures to contain the virus, while economists warn tough clampdowns are hurting the economy.

Shenzhen residents have been anxious over a renewed outbreak and angst at the swift, draconian measures to squash clusters.

“It’s the worst since 2020,” a Shenzhen resident surnamed Zhang told the AFP news agency. “The closures are too sudden. My friend woke up in the morning to find her building was sealed overnight without warning. Her boss had to mail her laptop to her.”

The Shenzhen subdistrict of Futian which was locked down on Sunday is home to 300,000 people and a thriving commercial district. It shares a land border crossing with Hong Kong, where the caseload over recent weeks has soared, alarming officials in Beijing.

Hong Kong currently has one of the world’s highest death rates from the virus, as the Omicron variant cuts through its elderly population among whom vaccine hesitancy proliferates.

In Shanghai, authorities have temporarily locked down individual schools, businesses, restaurants and malls over close-contact fears rather than using mass quarantines.

Authorities advised residents not to leave the city unless necessary and tourist attractions started requiring visitors to provide negative COVID tests.

“I have friends who I hung out with a few days ago but were suddenly quarantined recently,” Shanghai resident Serena Li told AFP.

The government’s approach will “protect citizens”, she said, adding: “In the long run, it’s good.”

Long lines were seen outside hospitals on Sunday as people rushed to get tested.

“There’s no other way. We definitely have to do what the government has arranged,” said a data analytics worker surnamed Zhang.

As cases rise, the country’s National Health Commission announced on Friday that it would make rapid antigen tests available for citizens to buy online or from clinics for “self-testing”.

Although nucleic acid tests will continue to be the main method of testing, the move suggests China may be anticipating that official efforts will not be able to contain the virus.

Last week, a top Chinese scientist said the country should aim to co-exist with COVID, like other nations where Omicron has spread like wildfire.

Source: Al Jazeera

DET to elevate Dubai’s position as a year-round global gastronomy hub

Dubai’s Department of Economy and Tourism (DET) hosted an industry briefing with restaurateurs and key stakeholders from the food and beverage sector, as part of continuous efforts to elevate Dubai’s position as a year-round global gastronomy hub in line with the visionary leadership’s goal to make it the world’s best city to live in, work and visit.

During the inaugural DET gastronomy briefing event, which was attended by Dubai’s restaurateurs, F&B stakeholders and industry partners, DET briefed attendees on the city’s year-round programme of key restaurant events, gourmet showcases and culinary platforms. In addition, DET’s gastronomy leaders shared an overview of strategic plans which will further raise Dubai’s profile on the world stage as a leading gourmet destination and a magnet for discerning foodies, epicurean travellers and culinary aficionados.

During the briefing event for stakeholders, which will now take place quarterly, DET provided an overview of its ‘Gastronomy Always on Campaign’ (GAON) that aims to support the F&B industry and also presented the city’s calendar of culinary events. It was announced at the event that the ninth edition of the much-awaited Dubai Food Festival (DFF) will take place from May 2 – 15, 2022, including the ever popular Dubai Restaurant Week returning to delight foodies across the city. Ongoing culinary platforms such as Foodie Experiences, Made in Dubai and Hidden Gems which celebrate the city’s delicious and diverse dining scene will continue throughout the year, peaking through the season during key culinary moments.

Dubai is home to around 12,000 diverse restaurants and cafés – from homegrown eateries to gourmet institutions and fine dining restaurants, right through to relaxed food halls and neighbourhood cafes, which together represent Dubai’s internationally recognised F&B scene. With diverse cuisines drawn from the cultures of more than 200 different nationalities represented in the city, combined with a presence from the world’s award winning chefs, restaurant groups and one-off culinary experiences, Dubai is the gastronomy capital of the region and a globally renowned epicurean destination.

Over the years, Dubai has grown to become one of the world’s most sought after destinations, and its food scene has matured and evolved alongside this. While welcoming more than 7.28 million international overnight visitors during 2021, the city was also recognised as the No.1 global destination and the fourth leading destination for ‘Food Lovers’ in the Tripadvisor Travellers’ Choice Awards 2022, testament to the gastronomic heritage, diversity of flavours and depth of the food scene in Dubai.

In addition, the city’s restaurants and chefs were recently recognised in the inaugural edition of Middle East & North Africa’s 50 Best Restaurants, which took place in February 2022 and celebrated culinary excellence across the region. Independently owned casual dining restaurant 3Fils located in Dubai Fishing Harbour topped the list of the region’s 50 best dining institutions, with an impressive total of six out of the top 10 restaurants in Mena being helmed in Dubai, with 16 restaurants across Dubai being included in the full list. Celebrated figures within Dubai’s diverse foodie scene were also recognised within the awards, with the city’s chefs, culinary innovators and restaurateurs garnering five of the seven specialty awards including Art of Hospitality Award, Chef’s Choice Award and the Best Pastry Chef Award.

Ahmed Al Khaja, CEO, Dubai Festivals and Retail Establishment commented: “From humble homegrown gems to street food offerings in a vibrant setting to Michelin-star chef helmed restaurants, Dubai has long been a leader in culinary excellence. Visitors to the city can delve into a world of flavours influenced by a melting pot of more than 200 nationalities drawn from all four corners of the world.”

Source: Gulf Today

Fuel scarcity hits Nigerian airlines hard, grounding flights and leaving passengers stranded

Thousands of Nigerian travelers have been left stranded at airports throughout the country because of a massive fuel shortage.

In the past week, more than three airlines reported shortages of aviation fuel, forcing them to reschedule or cancel flights.

Nigeria’s largest carrier, Air Peace, confirmed Wednesday that the shortage will impact on a number of its flights to Dubai and Johannesburg, its major routes.

Its other major airline, Arik Air, also confirmed it will experience many delays from Wednesday and onwards and many domestic flights will have to be canceled if the problem persists.

Nigeria is Africa’s biggest oil producer and exporter but the West African country is forced to depend almost entirely on fuel imports because of its inability to refine most of its oil for use at home.

Vanguard, a local publication, reports that the price of Jet A1, the principal fuel used by airlines, has ranged between 1.39 and 1.44 U.S. dollars per liter in the last few days, compared to the 1.08 price at which it previously sold.

In response, airlines that were able to acquire the fuel and continue operating hiked their ticket costs to cover for the increased charges.

Authorities blamed the scarcity of fuel on the withdrawal of adulterated gasoline, which the West African nation’s national oil company said was found to have been imported by four oil marketers.

Speaking with Vanguard on the cause of the scarcity and current high price, Chief Executive Officer of Cleanserve Energy, Mr Chris Ndule, said the current price of crude oil in the international market had affected the prices of all petroleum products, aviation inclusive.

“It is not only aviation fuel price that has increased, other petroleum products prices have also increased. This is partly due to the current price of crude oil in the international market, which is going for between 110 and 125 U.S. dollars per barrel.”

In the aftermath, the oil regulator has been unable to sustain distribution to retail outlets nationwide.

Outside airports, motorists have also been forced to abandon their cars or pay more to public transport operators following a hike in petrol and diesel prices.

Taxi operators have reported long queues, with some spending multiple hours to acquire the precious commodity.

Reports of brokers have also emerged, as scrupulous dealers sell petrol and diesel to desperate Nigerians for more than triple their usual price.

Despite being Africa’s top crude producer, gasoline shortages are common in Nigeria.

The Nigerian government said a “major investigation to unravel everything” has been launched to resolve the latest crisis.

“We are working very closely with the authority that is entrusted with the responsibility of regulating what is going on. Not only that. We are working with the government security agencies to ensure that products get to the stations and that there are also continuous sales in the stations,” the Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, said last week as he sought to assure the country that the situation was under control.

The NNPC had earlier ordered fuel retailers with the commodities to operate throughout in order to avoid long queues.

Source: CGTN

African airlines ready to weather storms of post-Covid prospects

African airlines are dusting off plans for operations in a post-pandemic market even as the continent faces mixed prospects in global air traffic recovery. IATA, the International Air Transport Association, predicts a firm path to resumption of global air travel, with passenger numbers expected to surpass the 2019 peak in 2024.

The bullish outlook is informed by the easing of travel restrictions in key markets as Covid-19 vaccinations reach optimal levels and infection rates recede.

Across the globe, airlines posted strong performance in January 2022, with Europe leading the pack and Africa also looking up. Improvements in the major North Atlantic and intra-European markets, are the backbone for recovery with Asia-Pacific’s recovery expected to continue to lag because China, the region’s largest market, continues to cling to restrictive border controls.

Meanwhile, a sudden spike in fuel prices means airlines will lose more than the $11 billion that IATA had predicted for 2022.

Planning operations

Airlines are either buying aircraft, hiring new personnel or adjusting schedules to shift capacity to markets that are opening up faster and cutting back or putting on hold planned route launches to restricted destinations.

For instance, this week, Ethiopian, Africa’s largest airline, placed an order for five brand-new Boeing 777-8 dedicated freighters, becoming the type’s launch customer on the continent.

After several episodes of start and stop, Nigeria says it will finally relaunch its revamped flag carrier next year.

According to the African Airlines Association (AFRAA), four airlines continued with their route development plans during 2021 while another 11 either reopened existing routes or launched new ones. At the end of January 2022, airlines in the region had reinstated 78.7 percent of their pre-Covid capacity.

Uganda Airlines which last year launched new services to Johannesburg and Dubai, is hiring staff for its London office ahead of a much-anticipated commencement of services to the UK. Kenya Airways this week announced a network review that will see its London service revert to daily while Yaoundé will cease operating at the end of May.

Kenya Airways has also indefinitely postponed the launch of a planned service to Milan, citing weak market conditions in the Italian market. Further south, South African Airways is spooling up for a return to the market after coming out of restructuring.

IATA sees passenger traffic bouncing past pre-pandemic levels, to reach four million travellers in 2024 – three percent higher than the last peak achieved in 2019. But it will not be until 2025 that African airlines hit a similar milestone.

Key drivers that would have supported Africa’s recovery are missing. Although 34 countries, who between them account for 80 percent of African traffic, have signed up to the Single African Air Transport Market SAATM, the initiative has not gotten off the ground.

Receding infection rates

The airline lobby’s optimism is shared by Airbus and Boeing, the world’s major commercial aircraft manufacturers, who are also sticking to their planned production rate increases.

According to, intra-African demand remained weak at just 31.3 percent while Intercontinental travel was struggling at 23.5 percent.

Despite some easing, governments largely maintained coronavirus controls. For instance, while Uganda removed the requirement for its controversial test on arrival, travellers are required to present a negative Covid certificate taken 72 hours prior to departure, on both the outbound and inbound legs.

While vaccinated passengers can travel to Mauritius without being subjected to a pre-departure test, they are required to take one on arrival and a second one on day five of their stay.

Subject to fewer restrictions, the domestic sector is expected to lead the recovery with regions that have a significant domestic sector benefitting more.

In its latest update, IATA says the pace of recovery slowed in both the domestic and international segments during January 2022 relative to December 2021 as governments tightened travel restrictions in response to the emergence of the Omicron variant last November.

But Willie Walsh, IATA’s Director-General says government have picked lessons from this episode and are now more open to easing restrictions.

“The recovery in air travel continued in January, despite hitting a speed bump called Omicron. Strengthened border controls did not stop the spread of the variant. But where population immunity was strong, the public health systems were not overwhelmed. Many governments are now adjusting Covid-19 polices to align with those for other endemic viruses. This includes lifting travel restrictions that have had such a devastating impact on lives, economies and the freedom to travel,” Walsh says.

Overall, demand for air travel was up 82.3 percent compared to January 2021 although that number was 4.9 percent below December 2021 on a seasonally adjusted basis.

On the opposite end, African airline’ traffic rose just 17.9 percent year on year during the reference period, which was lower than the 26.3 percent annual increase recorded in December 2021. The region’s airlines boosted capacity by 6.3 percent over the period while the load factor improved by 6 percent reach to 60.5 percent.

Cautious optimism

IATA cautions that while January 2022 saw strong growth in traffic compared to the preceding year, passenger demand was far below pre-Covid-19 levels. Total RPKs in January were at 49.6 percent of January 2019 levels with international traffic down 62.4percent and domestic traffic off the mark by 26.5 percent.

The Middle East, a key connector for Africa saw demand rise 145.percent year on year in January compared with January 2021, although that was still below 178.2 percent witnessed in December 2021, compared with the same period in 2020. January capacity rose 71.7 relative to the comparable period for 2021 with load factor inching up 17.5 percentage points to reach 58.6perecent.

The figures for January do not cover any impacts from the Russia-Ukraine conflict because it began at the end of February. According to IATA, the Ukraine market accounted for 3.3 percent of European passenger traffic and 0.8 percent of global traffic in 2021 while Russia’s international market represented 5.7 percent of European traffic excluding the Russia domestic market and 1.3 percent of global traffic.

Operational cost factor

However, the resulting sanctions and airspace closures are expected to affect travel, especially among countries neighbouring Russia and Ukraine. The airspace closures have forced the rerouting or cancellations of flights on some routes, mostly in the Europe-Asia and the Asia-North America market.

The airline lobby, however, observes that in addition to disruptions caused by the Ukraine conflict, the resulting spike in fuel prices is adding pressure on airline costs and will negatively impact the loss position. The airline industry was expected to accumulate a loss of $201 billion between 2020 and 2022.

“When we made our most recent industry financial forecast last autumn, we expected the airline industry to lose $11.6 billion in 2022 with jet fuel at $78/barrel and fuel accounting for 20 percent of costs. As of March 4, jet fuel is trading at over $140/barrel. Absorbing such a massive hit on costs just as the industry is struggling to cut losses as it emerges from the two-year Covid-19 crisis is a huge challenge. If jet fuel prices stay that high, then over time, it is reasonable to expect that it will be reflected in airline yields,” said Walsh.

Supply chain restoration

On the upside, many governments are removing or relaxing their Covid-19 travel protocols as a growing body of evidence suggests that airline passenger do not pose a greater than average risk of transmitting the disease. For instance, Singapore has introduced vaccinated lanes at its airports allowing vaccinated travellers to transit faster.

“The past few weeks have seen a dramatic shift by many governments around the world to ease or remove Covid-19-related travel restrictions and requirements as the disease enters its endemic phase. It is vital that this process continue and even accelerate, to more quickly restore damaged global supply chains and enable people to resume their lives,” says Walsh.

Walsh adds that one step that could speed up a return to normalcy would be to remove mask mandates for air travel.

“It makes no sense to continue to require masks on airplanes when they are no longer being required in shopping malls, theatres or offices. Aircraft are equipped with highly sophisticated hospital quality filtration systems and have much higher air flow and air exchange rates than most other indoor environments where mask mandates already have been removed,” said Walsh.

Year-on-year, domestic air travel was up 41.5 percent during the month but down 7.2 percent compared with December 2021 on a seasonally adjusted basis. International revenue passenger kilometres (RPKs) rose 165.6 percent compared to January 2021 but slipped by 2.2 percent between December 2021 and January 2022.

European airlines saw the most growth during January, with international traffic increasing by 225.1 percent over the comparable period for 2021. That growth was achieved on a 129.9 percent increase in capacity while the load factor climbed 19.4 percentage points to 66.4 percent.

The bullish outlook is informed by the easing of travel restrictions in key markets as Covid-19 vaccinations reach optimal levels and infection rates recede. But the gains will not be evenly distributed with the business expected to recover at a slower pace in Africa, which has vaccinated fewer people against Covid.

Despite the global easing, African operators face mixed prospects, boxed in by low Covid-19 vaccination rates and a smaller domestic market. That is likely to limit the number of people who can travel within the region and beyond.

Source: The East African