Brussels Airlines has published its first-quarter results for 2021. Unsurprisingly, the situation with the ongoing coronavirus pandemic has caused the Belgian flag carrier to be hit with heavy losses. These totaled €70 million ($84 million) for Q1. However, it hasn’t been bad news across the board, as its African routes have performed relatively well.

Brussels Airlines’ €70 million Q1 loss

Brussels Airlines recently announced that the first three months of 2021 saw it register a loss of €70 million. This figure represented a 9% decrease compared to Q1 in 2020, which consisted of two ‘normal’ months before coronavirus hit European aviation in March. Generally speaking, the first quarter tends to be the weakest across the airline industry in any case.

In terms of Brussels Airlines’ year-on-year revenue, this figure has fallen by a factor of 76% to €55 million ($66 million). This was also the percentage by which operating revenue fell year-on-year, dropping to €60 million ($72 million) in Q1 this year.

The number of flights operated in the first three months of 2021 compared to 2020 fell even more sharply. The 1,791 flights it operated in the last quarter represented an 87% decrease. Meanwhile, Brussels Airlines’ load factor has experienced a slower decline. Compared to the first quarter of 2020, this has dropped by 15.3%, to an average of 58.2%.

In more positive news, Brussels Airlines has reduced its operating costs by 59%, to just €130 million ($156 million). Of course, the lower number of flights operated has been a key factor, but the airline also highlighted the role of its cost-saving ‘Reboot Plus’ program.

African focus yields intercontinental success

The Belgian government’s ban on non-essential international travel has stifled demand, and proved a significant obstacle for Brussels Airlines. However, it has found that its African routes have performed comparatively well under the circumstances thanks to VFR and cargo demand. Regarding its shifted operational focus, the airline stated that:

“Intercontinental traffic performed better than the European operations due to the company’s focus on African routes, with a stable demand in the VFR segment (Visiting Friends & Relatives), and at the level of cargo, especially in terms of medical supply transport.”

Brussels Airlines serves the following African countries: Angola, Benin, Burundi, Cameroon, Côte d’Ivoire, the Democratic Republic of Congo, Egypt, Gambia, Ghana, Liberia, Morocco, Rwanda, Senegal, Sierra Leone, Togo, Tunisia, and Uganda.

Expecting a busier summer

Despite Q1’s heavy losses, Brussels Airlines is preparing for a summer of increased operations. After all, it expects demand to increase as the rollout of coronavirus vaccines quickens. As such, it has pre-emptively returned its flight crews to training in anticipation.

In addition to bringing its staff back up to speed, the airline is carrying out checks on its parked aircraft so that they are ready to return to the skies if demand requires. Planespotters.net reports that 19 of its 46 aircraft are presently dormant, awaiting their return to the skies. The airline will be hoping that it’s not long before its full fleet is active again.

Source: Simple Flying

Kenya has scrapped work visa and permit requirements for Tanzanian nationals in an effort to boost trade and tourism between the two countries, fast-tracking implementation of East African Common Market Protocol allowing workers to move freely in the region.

President Uhuru Kenyatta announced the new visa policy on Wednesday during a joint session of Kenya and Tanzanian business community in Nairobi, which was attended by the visiting Tanzanian President Samia Suluhu.

President Kenyatta said the move would allow Tanzanians to enter the country without restrictions and work freely, attracting foreign investment and boosting tourism without compromising national security.

“The objective is to strengthen our two economies by promoting easy movement of goods and people,” said President Kenyatta.

“We would like to see many investors from Tanzania coming to do business in Kenya. And I want to say this, Tanzanian investors are free to come and do business in Kenya. The only thing you will be required to do is to follow the laid down regulations and the laws that are in place,” he added.

Diplomatic and trade spats between the two countries have been cited in the past for risking regional integration, denying citizens the dream of a common market.

In 2018, Safaricom chief customer officer Sylvia Mulinge was denied permit to work in Tanzania after she was appointed Vodacom Tanzania chief executive.

Tanzanian Labour Commissioner did not give reasons for declining a work permit application in what investors saw as an attempt to lock out foreigners seeking to work in the country.

Further, the two presidents committed to eliminate barriers hindering the smooth flow of trade, instructing their respective officials to initiate and conclude trade talks within a fortnight in an attempt to scrap significant differences between the two countries.

The differences have threatened to slow down trade between the two countries, which amounts to Sh61.5 billion annually.

President Suluhu welcomed Kenyan traders to invest in Tanzania saying the neighbouring country is ready and open for business.

(Mna bahati kwamba nchi zetu mbili upande mmoja kuna uhuru wa kufanya biashara na upande mwingine kuna suluhu ya kuondosha vikwazo vya biashara)

“You are fortunate that our two countries on the one hand are free to do business and on the other a solution to removing trade barriers,” President Suluhu told the business forum.

Source: Business Daily

The cost of domestic flights has doubled on some routes since Sunday when the air travel resumed after the lockdown as airlines record high demand, forcing carriers to increase frequencies on different routes.

Kenya Airways ticket price have shot to Sh10, 050 on Mombasa and Kisumu routes from a low of Sh5, 000 when the flights resumed on Sunday.

KQ, which started with two flights to Mombasa and one in Kisumu on Sunday, has so far added additional flights on these routes.

Curbs on travel in the Nairobi and four surrounding counties were lifted Saturday following the easing of restrictions that saw a reopening of bars and restaurants, religious services and schools as the rate of infections eases.

Budget carrier Jambojet was charging Sh4,600 on Sunday in almost all the routes but the fares have so far gone up to Sh6,100, reflecting a 32.6 percent jump.

KQ will now operate up to six flights on Mombasa route with the Kisumu journey having been scaled up to two. Jambojet is operating four flights a day to Mombasa and two to the lakeside city and Eldoret (two).

“We are increasing the frequencies of our domestic flights. Fly three times a daily with us from May 4 and six times daily from May from May 7 from Nairobi to Mombasa,” said Kenya Airways.

Jambojet said the demand for flying has so far picked when compared with Sunday when they resumed their operations.

“We have seen the demand going up compared with Sunday when we started, there is a growth in bookings in the coming days especially for those who are making future bookings,” said Jambojet.

Passengers who booked KQ flight yesterday (Wednesday) for 5pm parted with Sh10,050 for a one way to Mombasa with a low of Sh5,070 in the morning and midday flights, while the cost of a seat on Jambojet to the same route is going for Sh6,100.

This are almost the same rates that the airlines were charging before the carriers were grounded after the government imposed a second lockdown in March.

An increase in frequencies and relatively high fares is an indicator that the aviation sector, which has been hit hard by Covid-19, is witnessing enhanced demand on number of passengers seeking air travel.

Fares to Eldoret on Jambojet range from Sh4,600 to Sh7,100 on some days such as yesterday (Wednesday), while the Kisumu route is going at between Sh5,100 and Sh6,100.

Return ticket from Kisumu to Nairobi on some days go as high as Sh7,100 with the lowest fare going at Sh4,600 for a one way ticket while it will cost a passenger between Sh4,600 and Sh5,600 to fly from Mombasa to Nairobi.

The government had in March restricted movement of people in and out of Nairobi and four other neighbouring counties to slow the spread of Covid-19, cutting movement of air travel on western Kenya and coastal Kenya out of Nairobi, which is a hub for all the local carriers.

The five counties are being treated as one Covid-19 high risk zone, with residents barred from crossing over to other areas.

Source: Business Daily

Expo is working round the clock to keep visitors safe with COVID-19 precautionary measures. For the past year, Expo 2020 Dubai has been busy laying down guidelines and measures for the health and safety of its staff and visitors alike.

The organisers of the event guarantee the public that they are taking every precaution necessary in line with the latest UAE Government guidelines. Expo 2020 has introduced applied technology like robots and Artificial Intelligence or AI to keep contact points to a minimum throughout the site.

Visitors will also find limited queuing that will allow them to maintain a safe distance between others and themselves.

Have a look at how you can enjoy your visit to Expo 2020 knowing that you are in safe hands.

What has Expo done to keep me safe?

The following are the safety measures implemented across the event site.

Thermal cameras: These are special cameras at arrival points that check temperature of the visitors before they can enter the site.

Masks: Visitors must wear face masks at all times.

Sanitary precautions: Hand sanitiser stations are installed at regular intervals across the venue. All Expo common areas and event venues are subject to regular cleaning and sanitisation.

Social distancing: Visitors are to maintain a distance of two meters between themselves.

Medical facilities: Medical personnel and specialist staff are always on standby in case of emergencies. There are also seven first-aid centres onsite open all days of the week.

Vaccinated staff: All employees and their families, as well as event participants have been inoculated against COVID-19 owing to Expo’s internal vaccination program.

How are the social distancing measures implemented?

Carrying out distancing measures in a venue that stretches 1083 acres can be quite challenging.

Expo has implemented the following safety protocols to ensure the wellbeing of all its attendees.

Capacity limits: A limited number of people are allowed into the venue at a time to control capacity flow. The same applies to dining areas where tables have regulated seating capacity.

Floor markings: Queues and common areas like parks, exhibition spaces, and performance venues are marked with reminders to practice social distancing.

Signage and posters: Infographics are placed throughout the site to stress the need for social distancing.

Staff patrol: Staff members have been appointed on site to ensure that visitors abide by these regulations.

Visitors showcasing any COVID-19-related symptoms will not be admitted into the site. This restriction extends to visitors who have been in contact with confirmed persons or are under a self-quarantine order.

Your Al Hosn app can help: With the Al Hosn app, which is sourced from the UAE Ministry of Health and Prevention, visitors can track positive contacts around them during their trip.

Source: Gulf News

South African national flag carrier South African Airways (SAA) has left a form of bankruptcy protection called a “business rescue” and was handed back to its executives.
After around 17 months of bankruptcy protection to address past sins, the once bloated airline is ready to get back to business after receiving R7.8 billion ($537.87 million) from the government.

After years of struggling to make a profit, South African Airways was placed under administration and ceased all operations in December 2019. In hindsight, it was probably the best thing as nobody knew what a devastating effect COVID-19 would have on the airline industry.

SAA is now solvent

A statement released by the administrators said that they had filed a notice of the implementation business rescue with the Companies and Intellectual Property Commission stating that SAA was now solvent. South African Airways is just one of many South African companies that rely heavily on government bailouts. To make the airline more efficient, the business rescue practitioners cut almost 80% of the airline’s workforce and reduced its liabilities with creditors and lessors.

Despite being overstaffed and inefficiently run for years, the government of South Africa still feels the need to have a state-owned airline. A source in the ministry responsible for SAA, the Department of Public Enterprises (DPE), told news outlet Reuters that the government was in final negotiations with a preferred equity partner.

“A purchase and sale agreement should be concluded in the next few weeks. This will enable capital, and much-needed technical and commercial expertise, to be brought in to ensure a competitive flag carrier emerges,” said the department.

Ethiopian Airlines to the rescue

Everyone assumes that South African Airways knight in shining armor will be the continent’s most successful and best-run airline, Ethiopian Airlines. Late last year, the suggestion was that the Addis Ababa Bole International Airport (ADD)-based airline was prepared to offer aircraft and crew to help get SAA flying again. In exchange for this, the Ethiopian airline wanted an equity stake in the reborn airline. What Ethiopian did not want was to take on any debt or be burdened with employee union issues.

In February of this year, Simple Flying reported that progress on forming a partnership was not progressing as well as Ethiopian would have liked. When speaking about the lack of progress, Ethiopian Airlines CEO Tewolde Gebremariam said:

“We are still discussing, but I would say it has not made the expected progress.”

There is no surprise when you have a private company that wants to turn a profit and a government that wants to provide jobs and opportunities for its citizens.

In related news, South African Airways’ low-cost subsidiary Mango, had to briefly suspend flights earlier this week over the non-payment of airport fees. At the same time, SAA’s technical arm announced plans to cut its workforce significantly. Mango and SAA’s maintenance arm were not included in last year’s 10.5 billion rand ($725 million) bailout.

Why do we need SAA?

Why the South African government feels the need to have a national airline defeats logic. At the moment, SAA has three 16-year-old Airbus A319-100s, one Airbus A330-300s, and eight Airbus A340s that nobody wants. This means that SAA will have to acquire new aircraft, and planes cost money even if you are only leasing them. The private sector has already taken up the slack regarding domestic flights, and internationally South African’s and visitors have a host of carriers to choose from.

The funding that has gone into bailing out a failing business could have been put to much better use, and frankly, I am surprised that the South African public is not outraged over the bailouts given to SAA.

Source: Simply Flying

Uganda has detected one case of the latest Covid-19 variant believed to have originated from India.

The country’s Ministry of Health has urged citizens to now more than ever protect themselves from the virus.

In a statement via Twitter, the Ministry said, “The deadly Covid-19 variant from India has been detected in Uganda. This should be a wakeup call for all of us.”

Uganda has confirmed 41,797 coronavirus cases with 342 deaths since the country’s index case in 2020.

Meanwhile, India is in deep crisis, with hospitals and morgues overwhelmed by the upsurge of virus cases.

The country’s total cases passed 18 million on Thursday after another world record number of daily infections, as gravediggers worked around the clock to bury victims and hundreds more were cremated in makeshift pyres in parks and parking lots.

India reported 379,257 new infections and 3,645 new deaths on Thursday, health ministry data showed, the highest number of fatalities in a single day since the start of the pandemic.

Kenya suspended flights to and from India for two weeks on Wednesday.

Source: The Star

NAIROBI, Kenya (AP) — Africa is “watching with total disbelief” as India struggles with a devastating resurgence in COVID-19 cases, the continent’s top public health official said Thursday, as African officials worry about delays in vaccine deliveries caused by India’s crisis.

The African continent, with roughly the same population as India and fragile health systems, “must be very, very prepared” since a similar scenario could happen here, John Nkengasong, director of the Africa Centers for Disease Control and Prevention, told reporters.

“What is happening in India cannot be ignored by our continent,” he said, and urged African countries to avoid mass gatherings including political rallies. “We do not have enough health care workers, we do not have enough oxygen,” he warned.

Africa’s vaccine supply heavily relies on India, whose Serum Institute is the source of the AstraZeneca vaccines distributed by the global COVAX project to get doses to low- and middle-income countries. India’s export ban on vaccines “has severely impacted the predictability of the rollout of vaccination programs and will continue to do so for the coming weeks and perhaps months,” Nkengasong said.

“We are living in a world that is extremely uncertain now,” he added.

Just 17 million vaccine doses have been administered across the African continent for a population of some 1.3 billion, according to the Africa CDC.

The situation in India is “very sad to observe,” the World Health Organization’s Africa chief told reporters in a separate briefing. “We are very concerned about the delays that are coming in the availability of vaccines,” Matshidiso Moeti added.

Her WHO colleague, Phionah Atuhebwe, called the delay “quite devastating for everybody” and said most African nations that received their first vaccine doses via COVAX will reach a “gap” in supply while waiting for second doses as early as May or June.

“We call upon countries that have extra doses to do their part,” Atuhebwe said, adding that the WHO is reviewing the Chinese-made Sinopharm and Sinovac vaccines this week.

One unexpected COVID-19 vaccine donor is Congo, which Nkengasong said wants to give back some 1.3 million doses so they can be distributed to other African nations since it hasn’t been able to do it at home.

There is “a lot of vaccine hesitancy” in the vast country, Nkengasong said. He didn’t immediately know how many people have received the doses there.

There is a five-week timeline to get the doses administered elsewhere, he said, and Congo is working with COVAX to hand them over. He expressed hope that the doses can reach other people quickly during what he called “an extremely critical time.”

Nkengasong didn’t know of other African countries saying they’re unable to use their doses but he urged them not to wait until the last moment to hand them back. Other countries in Europe, North America and Asia “can have their luxury” of vaccine options, he said, but “we do not have choices.”

Moeti with the WHO commended Congo for its decision, calling it “extremely wise of the government to make this estimation” in a country with gaps in its health care system.

She also warned that African countries must step up key public health measures to help avoid India’s scenario occurring here. The rate of testing for the coronavirus has dropped in “quite a few countries,” she said, and mentioned seeing data from one African nation in which the proportion of people not wearing face masks has risen to almost 80%.

Only 43 million tests for the virus have been conducted across the African continent since the pandemic began, the Africa CDC chief said, with a 26% drop in new tests conducted in the past week.

Nkengasong warned against travel bans, however, after Kenya this week announced it will suspend all passenger flights to and from India for two weeks starting midnight Saturday, while cargo flights continue.

“It’s really unfortunate we are reacting in a very ad hoc manner in respect to flight movements,” he said, emphasizing the strength of authentic negative PCR tests. “It’s not people who are a threat, it’s the virus.”

Source: AP News

With the Expo now getting closer, many commentators are wondering if Dubai will be able to ensure that the event delivers on its previous successes in the midst of pandemic-induced un-certainties

World Expos are platforms for host countries to exhibit their cities and flaunt their culture to a global market while formulating indelible international relations. Following suit, Expo 2020 will be a spectacular happening that will allow Dubai to showcase its brilliance, innovations, break-throughs, and vast potential for a bright future, all to a global audience.

With the expo now getting closer, many commentators are wondering if Dubai will be able to ensure that the event delivers on its previous successes in the midst of pandemic-induced un-certainties.

Ephemeral event with long-lasting impact

Shanghai hosted the highest number of visitors in 2010, welcoming a record-breaking 73 million attendees. Infrastructure, such as subway lines, air terminals, railway stations and the general urban structure, was given a face lift with an expo investment of about $45 billion. Tourism also soared — 13 per cent during the Spring Festival alone, while residential property-leasing vacancy rates fell from 15 to eight per cent during the expo. Demand for hotel rooms shot up 39 per cent from the expo happening in 2010 to 2019, and the average daily rate also increased by 30 per cent.

Riverfront properties, which were stamped as an outdated shipyard pre-expo, caught the eye of foreign investors who redeveloped and converted them into profitable retail and commercial ventures.

When Milan hosted the Expo in 2015, the hospitality industry and commercial services witnessed a hike of 1.3 to 4.2 per cent throughout the year; €6 billion was injected through foreign direct investment within three months.

Similarly, Japan also hosted a successful Expo in 2005 with 22 million visitors, 880,000 of whom were foreigners.

Dubai continues to lead the pack

Dubai has taken major steps and introduced sweeping changes to consolidate its position as the most resilient, future-focused and proactive city on the global map.

Policies in Dubai are formulated to stimulate the economy and make businesses thrive. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council, released a Dh1.5 billion economic stimulus package for businesses when the pandemic hit last year. Furthermore, the relief package aimed to reduce the living cost for the residents across properties and industrial arenas when the government rolled out a 10 per cent discount on water and electricity bills.

As part of the emirate’s unremitting pursuance towards supporting the business community, to weather the challenges posed by Covid-19, a Dh50 billion fund was put to play to ensure business continuity and stability.

According to economic reports released by the Central Bank of the UAE, the collective value of all capital and liquidity measures adopted by the authority since the 14th of March 2020 increased to Dh256 billion, including Dh50 billion in capital buffer relief, Dh50 billion in zero-cost funding support, and Dh95 billion in liquidity buffer relief. The central bank also projected a growth of 3.6 per cent for non-oil sectors.

Dubai has been strong in its preparations for Expo 2020 as growth and equilibriums as results of policy changes, technological implementation, and innovation in sustainability and infrastructure were widely noticed. The city anticipates a booming growth in sectors such as construction, tourism and hospitality, as well as looks to attract huge investments in real estate, environmental avenues and public affairs as a result of the expo.

Expo’s impact on Dubai’s economy

According to a statement from the Expo 2020 executive body, the total GDP will stand at Dh24.2 billion, while a report by Ernst & Young suggests Dubai’s economy will push up to about $33.4 billion as the country prepares to host millions of visitors despite the pandemic. Sectors such as events organisation, construction, and hospitality will contribute Dh68.9 billion, Dh27 billion and Dh11.4 billion, respectively.

A total investment of Dh40.1 billion will be put in in terms of infrastructure and capital as-sets. Event and legacy infrastructure will be allocated Dh53.5 billion.

Sustainability and technology have been highly incorporated for the Expo as the new Mohammed Bin Rashid Al Maktoum Solar Park will provide clean energy and facilitate charging stations for electric cars, and canopies will be covered with solar-panels with the ability to capture water from moisture and air around it, revolutionising sustainable energy sourcing.

Dubai, well-known to achieve the unthinkable, has taken up the challenge of making Expo 2020 the most digitally connected Expo in the history of the event. The latest technology and automation, such as AI and 5G, will play a major role in connecting the site via the Internet of Things. Data will be gathered and visualised via Navigator, a cloud-based energy management platform from Siemens.

The Red Line Dubai Metro has also been extended by 15 km from Jebel Ali Station as a convenient means to arriving at the Expo site. Infrastructure is an integral part of the economy as 301 individual projects worth $100 million are in their execution stage. The innovations in sustainability, technology and infrastructure will boost Dubai’s economic growth between 3.8 and 4.5 per cent over a span of five years, estimates suggest.

Dubai’s impeccable efforts

Expo 2020 will be a catalyst to boosting a broad spectrum of sectors in the name of innovation and development. It is not merely the preparations and the happening of the event itself, but especially the after-effects it will have a positive impact on the economy, with Expo 2020 rep-resenting a gateway to the world, putting Dubai on the world stage, facilitating the formation of business relationships, and attracting tourism and population increases in the long term.

Source: Khaleej Times

Congo Airways has inked a codeshare agreement with national carrier Kenya Airways (KQ) aimed at expanding their reach in the domestic, African and international routes.

The agreement, which was signed Thursday, will make it easy for the KQ customers to access Kinshasa directly from Nairobi as well as ply Africa and international routes jointly, the two airlines said.

A codeshare is a business deal between two or more airlines, which allows them to sell seats on each other’s flights and expand their network.

Each airline publishes and markets a flight under its designator and number as part of its schedule.

“The partnership agreement was signed by Kenya Airways Group CEO Allan Kilavuka and his Congo Airways counterpart Desire Balazire Bantu,” said a statement from State House, Nairobi, yesterday. The deal, signed in Kinshasa, on the last day of President Uhuru Kenyatta’s three-day state visit of Congo, will see the two national carriers also partner in aircraft maintenance.

The two carriers also agreed to collaborate on training and sharing of excess passengers, as well as cargo.

When it resumed international fights last year after a six-month hiatus on Covid-19 travel restrictions, KQ said it would not fly to Angola, Mali, the Republic of Congo, Somali, Sudan, Djibouti, Mozambique and Malawi.

The decision, said the airline, was an extremely difficult one in the current environment, pointing out that the move was necessary as they resumed operations gradually depending on passenger travel demand regionally and globally.

The airline’s net loss nearly tripled to Sh36.2 billion, the worst ever in the history of the airline, on account of Covid-19 disruptions that led to a sharp decline in passenger numbers.

The loss, for the financial year ended December 2020, is 2.8 times more than the Sh12.98 billion net loss it had posted a year earlier, and now deals a major blow to the recovery efforts of the national carrier.

Source: Business Daily