The UAE’s air space should turn busy with more commercial flights using it after the skies over Afghanistan have become no-go zones for airlines.

Air India, British Airways, KLM, and Singapore Airlines are rerouting overland flights from Afghanistan, according to Flightradar24. Several flights are now going through Pakistan and Iran, satellite data shows.

UAE’s airspace will also get busier as airlines – especially those that fly passengers from Asia to Europe and North America – work their way around Afghanistan.

“Iranian and other airspace will be busier than normal, with the diverting aircraft in the airspace,” said Andrew Charlton, an aviation analyst. “That will also add to the workload of air traffic control agencies affected – but I am sure that they can handle the pressure.”

As of October 2020, the number of aircraft flying through UAE’s airspace had risen to 1,000 a day.

Longer journeys

“When airlines have to divert around closed airspace, by definition it means that the aircraft are taking longer routes to get to their destination, which costs more in fuel and of course time,” said Charlton. “That will impact those airlines that are most using the airspace, which at the moment would include the Gulf carriers.

“Traditionally, it would also have affected carriers from Asia to Europe. But that is not such a big deal now and most airlines can afford the diversion in any event.”

Rising risks

Airlines and governments are now paying more attention to the risks of flying over conflict zones after two recent deadly incidents involving surface-to-air missiles. A Malaysia Airlines plane was downed over eastern Ukraine in 2014, killing all 298 people on board. And a Ukraine International Airlines jet was shot down by Iran’s military last year, killing all 176 passengers and crew.

Oil factor

“There will be an impact on airline operations to places, including India and Pakistan, due to airspace closures,” said John Strickland of JLS Consulting. “This will add to journey time and hence increased fuel burn on some markets. But it is essential to maintain confidence.”

Higher oil prices – up roughly 55 per cent in the last 12 months – are hitting airline margins and may make it harder for the aviation industry to recover from its current crisis.

Source: Gulf News

The Board of Directors of Jambojet on Thursday confirmed Karanja Ndegwa as the airline’s Chief Executive Officer and Managing Director effective September 2.

Ndegwa has been serving the airline in an acting capacity since April 2020 when took over from Allan Kilavuka, who was appointed the Kenya Airways Plc Group Managing Director and Chief Executive Officer.

Kilavuka continued serving on the Board of Jambojet as a Non-Executive Director.

Ndegwa was previously the Chief Financial Officer of Jambojet.

Jambojet Board of Directors chairman Vincent Rague in a statement expressed confidence in Ndengwa’s new role in the airline.

“Since taking over as acting Managing Director, Ndegwa has successfully steered the business, ensuring stability, continuity and growth amid the Covid-19 pandemic which has significantly affected the Aviation Industry. Through his leadership, we are confident that he is best suited to take the airline to the next level in terms of growth and sustainability,” Rague said on Thursday.

Karanja Ndegwa is a graduate of Economics and Statistics from the University of Nairobi as well as a Certified Public Accountant.

He has experience in financial planning and reporting, airline business/commercial strategy, capacity building, strategic management and revenue management.

He has spent over 20 years in various leadership roles within the Airline Industry.

Prior to joining Jambojet in 2014, he worked at Kenya Airways in different capacities, rising to the position of Manager – Revenue Accounting.

He served as the Head of Finance at Jambojet, before being appointed the Chief Financial Officer of the airline in 2016.

Source: The Star

Aviation company 748 Air Services opened its Mombasa Office at Moi International Airport on Thursday as it prepares to add more flights on the Coastal route.

According to the airline Managing Director Moses Mwangi, the Mombasa office will help it serve its growing customer numbers along the coastal tourism circuit on the back of recovering tourism sector.

“We expect to see increased tourism activities in the coastal routes following the commencement of a nationwide Covid-19 vaccination drive for frontline personnel in the Tourism and Hospitality sector a few months ago,” Mwangi said.

“The Mombasa Office will help us handle more people who are increasingly gaining confidence to fly again as Hospitality establishments move towards full resumption,” Mwangi added.

The airline said that there will be two daily flights departing from Jomo Kenyatta International Airport (JKIA) to Moi International Airport in Mombasa.

The airline also has one daily flight departing from JKIA Terminal 2 to Ukunda. In October, the airline will launch direct flights from JKIA to Malindi.

This will bring the airline’s domestic routes to five, having already operations to Mombasa, Kisumu, Ukunda and Maasai Mara.

In May, 748 launched two daily flights between Nairobi, and Kisumu and later on started operations in Mombasa and Diani.

“We continue to open up new routes in line with our goal of revolutionising service offering by ensuring affordability, efficiency, and passenger safety as part of our bigger commitment to delivering better flight experience to clients,” said 748 Air Services Chairman, Ahmed Jibril.

On these routes, 748 said it will leverage its fast and versatile Dash 8-Q400 aircraft with a capacity of 78 passengers with a return ticket cost starting from as low as Sh10,700.

748 Air Services (K) Ltd is an Air Charter Company that holds an Air Operator Certificate.

Source: The Star

Kenya Airways needs continued government support as it remains in a “precarious financial position” with recovery to pre-COVID levels unlikely before 2024 given delayed vaccinations in Africa, says chief executive Allan Kilavuka.

Briefing investors online on the airline’s half-year results ending June 2021, he said: “Definitely, the company needs financial support, and this is not a secret. We still need financial support from our principals or elsewhere. We are in a negative equity position, which means we are insolvent as an organisation, obviously made worse by the pandemic,” reports Kenya’s Business Daily. Kilavuka did not specify the amount needed.

Kenya Airways’ liabilities reportedly outstripped its assets by KES73.8 billion shilling (USD672.3 million) by June 30, 2021, compared with KES64.1 billion (USD583.5 million) at the same time last year.

The airline last year borrowed KES11 billion (USD100 million) from the state after it was grounded due to the pandemic.

During the first half of 2021, operations continued to be severely impacted by the COVID-19 crisis, resulting in a KES11.49 billion (USD104.6 million) net loss in the first six months, taking its accumulated losses to more than KES127 billion (USD1.1 billion) – even though the latest results were a 19.8% improvement on the KES14.33 billion (USD130.5 million) posted at the height of the first COVID wave in the first six months of 2020.

The Group’s total revenue during the 2021 half-year reduced by 9% to KES27.354 billion (USD249.145 million) as a result of the cessation of domestic scheduled operations in April 2021, travel restrictions, and lockdowns in the carrier’s key domestic and international markets including the UK, India, China, the UAE, and the US, the airline said in a statement.

Kenya Airways said it currently served 40 international destinations and two domestic routes with significantly reduced frequencies of about 65% compared to 2019. Before the pandemic, it had flown to 40 African destinations. However, COVID-19 restrictions by various states, a slow vaccination roll-out resulting in less than 2% of Africans being vaccinated, and stringent travel restrictions on African travellers in European markets all contributed to a 20% drop in passenger uplift and a 17% decline in passenger revenue to KES20.2 million (USD184,000). Chief Financial Officer Hellen Mathuka said the airline held KES10 billion (USD91 million) in unflown revenue from unused tickets, down from KES13.9 billion (USD126.5 million) in December.

However, cargo revenues increased by 60% as the Group increased cargo uplift by 500 tonnes a month.

Chairman Michael Joseph told investors the company remained focused on cash conservation. “The company has exploited opportunities of raising much needed revenue through passenger charters and ramped up cargo operations. Other initiatives undertaken by management include partnerships with other airlines, lease rentals re-negotiations, payment plans with suppliers and partial deferment of staff salaries.” The said focus for the rest of 2021 would be the survival and the rebound of the company.

Kilavuka said Kenya Airways would continue to adopt “an agile approach in responding to the current dynamic marketplace”. “Our focus is on business recovery and to continue contributing to the rebuilding of economies and communities impacted by the pandemic. Restoring customer confidence for business and leisure travel will be key to growing demand, as well as creating agile and nimble business models that are sustainable and responsive to the customer’s needs.”

The carrier managed to save KES1.5 billion (USD13.6 million) in the past six months after successfully renegotiating aircraft leasing terms with its lessors. This, Kilavuka said, was expected to yield savings of up to KES4.9 billion (USD45 million) by the end of December 2021. “We have mainly focused on operating leases. What we have done is negotiate with our lessors so that they can amend the lease terms. These were long and difficult discussions, but in the end, we have been able to extract some amendments to the leases,” he explained. “The bottom line is to look at the least fleet ownership cost that we can get.” With its operations greatly reduced during the pandemic, the carrier had negotiated to only pay hourly rates instead of fixed leases for when the aircraft were flying.

The airline’s fleet comprises eight B737-800s, two B737-300(F)s, two B737-700s, and nine B787-8s, as well as fifteen ERJ 190-100ARs, the ch-aviation fleets advanced module reveals. Nineteen of its aircraft are on operating leases from amongst others Aviation Capital Group, BOC Aviation, DAE Capital, DVB Bank, GECAS, Goshawk, Macquarie AirFinance, and Nordic Aviation Capital.

The carrier has also saved KES155 million (USD1.4 million) from ongoing workforce reduction and payroll reviews, reports Citizen TV. In 2020, it had cut KES3.4 billion (USD30.9 million) from payroll-related costs as it began implementing a blanket reduction to staff salaries.

However, the airline reportedly has defaulted on local lenders who now only maintain a revolving credit facility agreed with the company as part of the restructuring of KES17 billion (USD155 million) worth of unsecured loans in 2017. International lenders like JP Morgan and Citibank have secured their loans through the airline’s fleet.

As reported, the Kenyan government, which holds a 48.9% stake in the carrier, plans to fully re-nationalise the flag carrier by creating a National Aviation Council and a holding company, Kenya Aviation Corporation, that will house three subsidiaries: Kenya Airways, the Kenya Airports Authority, and an investment arm, the Aviation Investment Corporation. Kenya Airways in May 2021 engaged UK consultancy firm, Steer Group, to draft a turnaround strategy.

Source: Ch-Aviation

Zambia commissioned the Simon Mwansa Kapwepwe International Airport in Ndola, the country’s second largest city and the commercial hub of its central copper producing region.

The airport’s $400m construction cost was financed with a government-to-government loan from China’s Export-Import Bank, and it was designed and built by the Aviation Industry Corporation of China (Avic).

The opening ceremony was performed by Edgar Lungu, president of Zambia.

“Today marks a key milestone in the transportation sector and the aviation subsector, in particular, as we continue on our journey to repositioning Zambia as a major aviation hub in Africa,” he said, reports Xinhua.

He added: “Travellers to Ndola can now experience the world-class look and feel here at the new Simon Mwansa Kapwepwe International Airport. This airport is in close proximity with the Democratic Republic of Congo’s Katanga Province and will improve business between the two countries.”

The facility, one of four international airports in the country, will take over from the existing Simon Mwansa Kapwepwe airport, named after a former vice president of Zambia.

Lei Yinqui, a senior consultant at Avic, said the 3.5km runway and the terminal would be able to deal with a million passengers a year. [https://www.mwebantu.com/president-edgar-lungu-commissions-new-simon-mwansa-kapwepwe-airport/]

He added that 800 local jobs were created during the work, and that more than 20 local subcontractors earned $40m in fees.
As well as the airport, the development has a business complex, a 50-room hotel, a fire and rescue station, cargo terminal and maintenance hangar.

Source: GCR

Travellers from Kenya remain banned from the United Kingdom in the latest update that took effect Thursday evening in a fresh blow for tourism which is currently in its main season.

The UK updated countries on England’s “Red List” amid concerns about the spread of new Covid-19 variants that have now been reported in Kenya.

Britain retained Kenya, whose cases of Covid-19 have been surging by double digits, on the travel ban first placed in April.

The decision deals a fresh blow to the Kenyan hospitality industry, whose tourism season traditionally peaks from July to September, coinciding with the country’s dry season and the world-renowned migration of wildebeest and zebra through Maasai Mara Game Reserve.

Kenya is a popular tourism destination for Britons. The UK has been a top tourism source market for Kenya. In 2019, it emerged fourth in ranking, with tourist visits of 181,484.

The UK has segmented countries into green, amber and red lists, each carrying different degrees of restrictions for arrivals back to Britain.

A British citizen travelling from a Green and Amber List is not required to undergo a mandatory quarantine.

Travellers arriving in the UK from countries on the Red List are denied entry, while returning Britons must submit to 10 days of mandatory quarantine in hotels.

Kenya had earlier protested the ban having relaxed punitive requirements imposed on British citizens, which required them to undergo 14 days of isolation before entering the country.

Kenya had 232,869 confirmed Covid-19 cases and 4,635 deaths, with a positivity rate of 12.9 percent as of Thursday.

British High Commissioner to Kenya Jane Mariott Howe recently urged Nairobi to ensure speedy vaccinations countrywide, a move that would se the lifting of the ban.

She noted that the British government reviews the list often and linked the removal of India, which had high infections, to increased immunisation.

“We are reviewing the list too often, and we hope that Kenya comes out of the list soon. The more vaccines we have, the more genome sequencing we have, the easier it is to get off the red list, and that is why India had an advantage,” she noted.

Kenya on Monday received 880,460 doses of Moderna vaccines in yet another boost to the ongoing vaccination drive that targets to vaccinate 10 million people by the end of the year.

The Moderna doses, donated by the US government, is the second vaccine in Kenya’s programme after AstraZeneca, with at least 1,615,687 people having received at least one jab and 780,377 fully vaccinated by August 22. 

Source: Business Daily

South African Airways has confirmed it will resume commercial passenger operations on September 23 on one domestic and five regional routes following a 21-month hiatus during which it was plucked from bankruptcy protection through a controversial taxpayer-funded ZAR10.5 billion rand (USD683 million) bailout.

Restarting as a significantly smaller airline with a fleet that has shrunk from 44 to just six aircraft and a workforce that has been reduced from 4,000 to 802 employees and five interim executives, SAA will start-off with one domestic return route between Johannesburg O.R. Tambo and Cape Town, as well as regionally from Johannesburg to Accra (Ghana), Kinshasa N’Djili (DRC), Harare Int’l (Zimbabwe), Lusaka (Zambia), and Maputo (Mozambique), interim Chief Executive Officer Thomas Kgokolo said in a statement. SAA will add more destinations to the route network as it ramps up operations in response to market conditions.

Tickets will go on sale on August 26, while Voyager loyalty programme bookings and travel credit voucher redemption will be available from September 6, 2021.

“After months of diligent work, we are delighted that SAA is resuming service, and we look forward to welcoming onboard our loyal passengers and flying the South African flag. We continue to be a safe carrier and adhering to COVID-19 protocols,” Kgokolo said. “There is a profound feeling of enthusiasm within Team SAA as we prepare for takeoff, with one common purpose – to rebuild and sustain a profitable airline that once again takes a leadership role among local, continental, and international airlines.”

SAA’s Board chairperson, John Lamola, believed the airline was restarting with a “formidable business case”, saying the Board, management, and the shareholder representative Department of Public Enterprises (DPE) had been hard at work since the airline exited administration on April 30, 2021.

However, no mention was made of SAA’s announced preferred strategic equity partner, the Takatso Consortium, which is still doing its due diligence of the airline before finalising a partnership that will see the government give up a 51% shareholding of SAA. Takatso, comprising ACMI specialist Global Aviation Operations (GE, Johannesburg O.R. Tambo) and asset fund manager Harith General Partners, is to sink another ZAR3 billion (USD195 million) in operational capital into the airline for the first 12 to 36 months of operations, while the state aid will be used to take care of SAA’s historical debt.

In a letter to South Africa’s Politics Web, the consortium underlined that only once its due diligence process has been “finalised and if successful, will the deal be finalised”. It said future capital and planning of SAA would be determined after completing the due diligence exercise.

SAA is returning to a domestic market space that has changed fundamentally since it went into business rescue. Its own state-owned low-cost subsidiary Mango Airlines (JE, Johannesburg O.R. Tambo) is in voluntary bankruptcy protection. Its sister airline and regional feeder, South African Express (EXY, Johannesburg O.R. Tambo), is in provisional liquidation. Its former franchise agreement with regional airline Airlink (South Africa) (4Z, Johannesburg O.R. Tambo) has been cancelled after SAA withheld about ZAR700 million (USD45.5 million) in unflown revenue from the former secondary route feeder. With no further government pay-outs likely, SAA will be pitched against a clutch of carriers all plying the same trunk routes, including Comair (South Africa)’s Kulula Air brand and British Airways franchise, no-frills carrier FlySafair (FA, Johannesburg O.R. Tambo), newcomer Lift Airlines (GE, Johannesburg O.R. Tambo) (wholly-owned by Global Aviation), as well as regional specialists Airlink and CemAir (5Z, Johannesburg O.R. Tambo).

Source: Ch-aviation

Kenya is looking to attract international luxury travelers as part of a strategy to revive the tourism sector and as part of expanding the tourism market basket.

The absence of international tourists coupled with travel restrictions occasioned by the Covid-19 pandemic has resulted in reduced travel globally and travelers with specific preferences which are value for their money.

The government has now set eyes on luxury travelers as it seeks to continue the recovery path of the tourism sector through targeted marketing strategies in several markets.

Tourism and Wildlife Cabinet Secretary Najib Balala said that the destination is proving to be attractive to luxury travellers especially with Kenya having unique travel opportunities and new developments in the country.

“Over the years we have been working towards profiling Kenya to niche clients who have specific preferences and needs and that’s the reason we have been diversifying our products to suit each market segment. 

“It is important to mention that Kenya was selected for this trip because we have a unique and iconic tourism product, the wildebeest Migration at the Maasai Mara and luxurious accommodation facilities that suit the needs of the high-net-worth traveler who wants value for their money,” Balala said.

Balala was speaking from the Maasai Mara as he welcomed tourists aboard the inaugural Roar Africa and Emirates Executive Private Jet Safari, (a World-Class Conservation Safari).

He added that he was glad to see travelers re-ignite their love for Kenya, resonating with the current marketing strategy calling on travelers to rediscover Kenya’s magic – Kenya has something for each and every traveler.

“The visit by this high-level delegation is testament to the fact that Kenya is a consideration to the niche luxury traveler who is attracted to specific experiences and offerings. Our goal is to build on this as we work towards expanding into different market segments in the short and long term,” he added.

The trip dubbed the ‘Greatest Safari on Earth’ By Roar Africa and Emirates Airlines, is an extraordinary ‘bucket list’ luxury travel experience designed to preserve and support Africa’s wildlife, wildlife spaces, and communities.

All proceeds from the trip will go towards supporting wildlife conservation efforts in the destinations visited.

The trip delivered 15 guests from the United States (US) in unbridled luxury to four iconic African destinations that offer the ultimate adventure and encounters with environmental educators and conservation change makers.

The 12-day Sh12.5 million ($125,000)-per-person getaway will see the guests tour iconic destinations in Africa including Kenya which was selected thanks to the unique and authentic natural safari experience capped by the annual Great Wildebeest Migration and luxurious accommodation and amenities that suit their needs.

Kenya has in the past prioritized product diversification aimed at positioning the country as the go-to destination for all cadres of travelers.

Through the Magical Kenya Signature Experiences program, the destination has enhanced its diversity in offerings, a move the CS believes is key to the country’s tourism sector.

“The Signature Experiences are lifetime experiences that range from adventure, conservation, heritage, cultural immersion, wellness to alternative safaris, all of which visitors can get to see, visit and experience while in the destination.

“This program will continue to play a big role in attracting international travelers who are keen on authentic experiences. This is in addition to continued publicity and marketing of other tourism products Kenya is well known for like the beaches.” Balala said.

In 2020 Kenya was ranked as Africa’s leading tourist destination by the World Travel Awards (WTA), cementing her position as a preferred travel destination to international travelers.

Luxury travel is growing to become a key segment in the industry with several key developments currently ongoing, expected to boost the sector.

The newly constructed Lamu Port is touted to be a game changer expected to boost cruise tourism as well as improvement of airports and airstrips.

The visit by the travelers comes at a high season for the tourism sector with the annual Twin Migration (Wildebeest Migration and the Humpback Whale Migration) currently ongoing.

Source: The Star

Tourists now prefer a shorter period between booking and traveling to avoid any uncertainties arising from Covid-19 restrictions.

According to a report by the by the Kenya Association of Travel Agents (KATA) and Amadeus search agency they want actual travel dates that are not far apart from the booking date.

This has seen booking times down to 16 days in 2021 from 26 days in 2019.

“The constantly changing travel restrictions has affected early bookings and most Kenyans prefer to book close to their departure date,” said KATA.

According to the report, 72 per cent of searches in June had a departure date in either June or July as tourists reduced booking time.

Sixty three percent of international travellers searching for Kenya as a destination in June planned to travel within the next three months which KATA noted was a shorter time compared to the past.

The report however showed a positive trajectory for travel during the course of 2021, with a gradual increase in searches and destination travel demand.

The average daily search activity of Kenyans in June was eight per cent higher than the year-to-date average and in July it was 35 per cent above the 2021 average.

The most searched destination by Kenyans in June 2021 was USA at 30 per cent, Tanzania and UAE 5 per cent, and UK 4 per cent while the most booked destinations were UAE with 15 per cent of total bookings, USA 12 per cent, Tanzania 7 per cent and Ethiopia 6 per cent.

KATA notes that UAE was in the lead due to fewer Covid-19 travel restrictions. 

In East Africa, Tanzania was the leading destination for Kenyans especially for leisure activities. The demand was driven by relaxed Covid-19 border restrictions for Kenyans visiting the country.

Seat capacity among international airlines operating from Kenya was noted to be recovering gradually compared to 2019 volumes, although it is slightly behind the global average.

The capacity to international destinations is currently at 51 per cent whereas globally it is at 63 per cent.

For domestic destinations, the capacity is slightly higher at 86 per cent while globally it is at 91 per cent.

The average daily search activity of international travellers interested in Kenya in June was 10 per cent higher than the year-to-date average, according to KATA.

In July it was already 31 per cent above the 2021 average.

Most searches for travel to Kenya in 2021 originated mainly from USA with 43 per cent of total demand, followed by Germany 8 per cent, UK 7 per cent and Canada 4 per cent.

On the outlook on recovery, travel demand remains significantly below pre-Covid levels owing to international travel restrictions in key markets in Europe, North America and Asia but is steadily rising.

The data presented indicated that Covid-19 related restrictions were a showstopper as 84 per cent of respondents said they won’t travel if there is a chance of quarantine.

Jamel Chandoul Senior Vice President, MEA Amadeus who spoke during the release of the report noted that the sector’s recovery will be driven by rebuilding traveller confidence and trust.

According to the United Nations’ World Travel Organization (UNWTO), it is important for countries to start lifting travel restrictions to significantly improve traveller confidence.

Mohammed Wanyoike, KATA Chairman expressed confidence on the industry making a full recovery sooner rather than later.

“The industry is currently performing at about 40 per cent of the 2019 numbers and this is an indication that the worst is behind us,” he said.

Kenya’s tourism and travel industry took a beating from pandemic, with the Tourism Research Institute indicating over 1.2 million jobs lost.

Source: The Star