Associations push for new IATA policy to protect Travel Agents and air passengers’ money

Travel Associations have called upon the International Air Transport Association (IATA) to formulate a policy that will guarantee a refund for cancelled travel during the COVID-19 period.

Travel Associations worldwide who attended a virtual forum organised by the United Federation of Travel Agents (UFTAA) agreed that the refund policies by airlines have been a challenge for passengers and travel agents.

The Kenya Association of Travel Agents (KATA) has been very vocal in demanding for refunds from airlines. The calls headed by KATA Chairman Mr. Mohammed Wanyoike and CEO Ms Agnes Mucuha have been relentless especially due to the negative effects to the economy caused by the COVID-19 pandemic.

During the forum, it emerged that while some airlines had started making refunds, others offered vouchers serving as Credit Notes which will take time to realise.

Majority of the presentations by associations that were made during the forum urged IATA strongly to come up with a policy that safeguards monies of travel agents and passengers during such disasters or market situations.

“It is unfair and that hundreds of thousands of passengers and thousands of agents across the world have been put to unprecedented challenges by the Airlines when refunds were sought for flights that were cancelled, during the last five months” said several leaders during the forum held on August 31, 2020.

UFTAA’s Mid-Year Forum 2020 was attended by over 180 delegates from across the world.

Their presentations offered outstanding learning content for the industry stake-holders to capture the various situations that exist in different parts of the world. There was a focus on the trends as well as plans initiated to overcome the challenges posed by the most negative COVID-19 impact.

It was projected by some speakers that it would take a couple of years for the travel & tourism business to bounce back to the pre COVID numbers. It was important that what is initiated during this transition period has to be well planned.

UFTAA President Mr. Sunir Kumar R detailed the various initiatives UFTAA had taken up in their debates with IATA and Airlines to bridge the gap between the “crisis and relief”. For over 4 Months UFTAA actively represented the associations and their members to help address the challenges posed. Vice President & Chairman of Air Matters, Mr. Yossi Fatael, presented a lucid picture of the evolving situation and the trends that one must keep an eye on.

In view of the most enthusiastic response witnessed from the world of Travel & Tourism Industry leaders and stakeholders at this forum, UFTAA Board decided in favour of a second UFTAA Mid-Year Forum 2020 to be held virtually during September 2020. The Part 2 of UFTAA Forum will offer extensive interaction opportunity and learning from best practices that are prevalent, globally, for the benefit of its Associations and their members.

By Caroline Rwenji, Kenya Association of Travel Agents

Jambojet domestic fares up 37pc

Jambojet has increased fares on domestic routes by 37 percent, signalling rising demand for travel after the easing of Covid-19 lockdown.

The carrier, has increased fares in five of its domestic routes including Kisumu, Mombasa, Eldoret and Malindi and Diani, in what look set to boost its revenues.

Passengers going to Kisumu, Mombasa, Eldoret, and Malindi are paying a one-way minimum fare of Sh6,600 up from Sh4,800 on the routes from its hub in Nairobi, reflecting a 37.5 percent increase.

The carrier, whose passenger capacity has increased from 30 percent in the weeks after Kenya resumed domestic flights in July 1 to the current 58 percent.

“As is the practice in the airline industry and in the transport sector as a whole, our tickets are priced on demand and supply basis. When the demand is high, our prices go up,” said the airline’s acting managing director Karanja Ndegwa in an interview yesterday.

“Additionally, if you book your ticket closer to the date of travel, the prices are significantly higher than if you book and pay months ahead. This is why we always encourage our customers to plan and book their travel well in advance,” said Mr Ndegwa.

The carrier has increased air fare at a time the aviation industry is in turmoil following disruptions caused by Covid-19 that saw airlines around the world grounded.

Jambojet is yet to start international flights because of strict health guidelines issued by Rwanda and Uganda.

The carrier plans to start flying between cities in Kenya without stopping at its hub in Nairobi on October 2, after getting approval from the Kenya Civil Aviation Authority (KCAA).

The carrier will charge flights for Mombasa to Eldoret and Kisumu, Eldoret and Kisumu to Mombasa routes at Sh8,900 one- way for each route.

Last month, the carrier entered into a deal with Safaricom to allow its passengers to pay their flights using Safaricom Bonga Points as it moves to cushion its customers currently struggling economically under the Covid-19 pandemic.

Source: https://www.businessdailyafrica.com/corporate/companies/Jambojet-domestic-fares-up-37pc/4003102-5621626-v7mq4jz/index.html

KQ nears nationalisation as talks on shares enter homestretch

Kenya Airways is moving closer to nationalisation as the carrier together with the National Treasury are conducting valuation of the individual and small shareholders to ascertain their value.

The airline opened talks with the minority shareholders as they seek to get them out of the shareholding ahead of the nationalisation of the carrier.

The shareholders who are in talks with the KQ include KLM and banks, who are discussing buyout plan of their stakes as the nationalisation process takes shape following the passage of the Bill that legally underpins the proposal.

The airline’s board chair Michael Joseph said the talks on reverting of shares to government has already started and discussions have been ongoing with all the involved parties.

“We are having discussion with minority shareholders that include banks to determine how to take them out of current shareholding,” he said.

Mr Joseph, who spoke during the company’s investors briefing, said they are also in talks with individual shareholders and they are at the moment in the process of valuing the shares, pointing out that they will be bought out once the valuation has been completed.

“Share prices are not true reflection of the value. We are at the moment doing the valuation and they (shareholders) will receive value for their shares,” he said.

He said the relevant Bill is currently at the committee stage in parliament and after it has been passed it will be taken to the President for endorsement, establishing an aviation holding company that will bring together all the aviation agencies at the airport.

Air-France KLM, which had the option of selling its stake to the government and staying on as a technical partner for the airline, has opted to exit.

Kenya has reached an agreement with Air-France KLM on the offer price, which will be a premium on the carrier’s prevailing trading price at the Nairobi bourse. The same KLM offer price will be used to acquire the minority shareholders, who hold about 2.8 percent of the shares currently valued at Sh397 million.

The state said in June that they had come up with a formula that will be used in buying out the minority shareholders.

The government at the moment has a 50 percent stake on the national carrier, with 38 percent belonging to the banks after they converted their loans into shares, seven percent owned by the Dutch based airline KLM with the remaining shares owned by individual shareholders.

In 2017, the State converted Sh16.8 billion worth of loans it had provided to the company into shares as part of the airline’s debt restructuring. The government also holds another Sh7.7 billion worth of convertible debt.

Mr Joseph said the nationalisation process is ongoing and it is currently at the committee stage in parliament and it is expected to take effect once it has been gazetted.

Under the plan, the government is expected to buy out the remaining holders of 51.1 per cent of the shares and form Aviation Holding Company to run the national carrier and Kenya Airports Authority (KAA), which manages airports in the country.

KQ is seeking a new lease of life after the parliament shot down its plans to take the management of the KAA.

The airline has been making losses for years with the carrier plunging into deeper financial woes in its half year with Sh14 billion loss from Sh8 billion in corresponding period last year.

The loss was largely due to the grounding of services in March this year occasioned by Covid-19 pandemic that saw countries worldwide close their airspace for passenger flights.

Source: https://www.businessdailyafrica.com/corporate/shipping/KQ-nears-nationalisation-as-talks-on-shares-enter-homestretch/4003122-5620952-nbb7ym/index.html

Qatar Airways Resumes Flights to Over 50% Destinations

Qatar Airways has resumed flights to more than 50% of its pre-COVID-19 destinations, the airline announced.

And more destinations will be added in September.

Since the outbreak of the pandemic, the Qatar Airways network has never fallen below 30 destinations with continuous connections to five continents.

By mid-September, Qatar’s national airline will operate over 650 weekly flights to more than 85 destinations.

The airline is resuming flights to the following destinations in September:

  1. Houston (three weekly flights started September 2 increasing to four weekly from September 15)
  2. Kathmandu (one weekly flight starting September 5)
  3. Mogadishu (three weekly flights starting September 6)
  4. Philadelphia (three weekly flights starting September 16)
  5. Sialkot (three weekly flights started September 1)

Qatar Airways is also increasing flight frequencies in places like:

  1. Ankara (increased to daily from September 1)
  2. Baghdad (increased to 11 weekly flights from September 3)
  3. Basra (increased to daily flights from September 2)
  4. Djibouti (increasing to six weekly flights from September 6)
  5. Erbil (increasing to 11 weekly flights from September 3)
  6. Ho Chi Minh City (increasing to daily flights from September 15)
  7. London Heathrow (increased to four daily flights from September 1)
  8. New York JFK (increased to double daily flights from September 1)
  9. Sulaymaniyah (increased to daily flights from September 2)

Qatar Airways Group Chief Executive, Akbar Al Baker, said, “The gradual rebuilding of our network has been focused on strengthening connections between our hub in Doha and key gateways around the world as well as major business and leisure destinations.

The resumption of flights to Philadelphia will provide seamless connections via our U.S. partners to several key domestic points such as Atlanta, Detroit and Miami.

Similarly, the increase in frequencies to Djibouti, Ho Chi Minh City, London and New York will provide further air freight capacity to this important trade and economic centres.”

“The recovery of international travel will take time but returning to over 50% of our pre-Covid-19 network is a significant milestone.

To ensure travelers can plan their trip with confidence, the airline allows unlimited date changes and passengers can change their destination as often as they need if it’s within 5,000 miles of the original destination.

The airline does not charge any fare differences for trips taken before December 31, 2020. Thereafter, the tariff regulations apply.

All tickets booked by December 31, 2020 are valid for two years from the date of issue. Source: https://travelobiz.com/qatar-airways-resumes-flights-to-over-50-destinations/

Ethiopian Airlines’ New Terminal Expands Bole Airport’s Capacity to 22 Million Annual Passengers

Ethiopian Airlines unveiled a new terminal at Bole International Airport, pushing the airport’s capacity to 22 million passengers annually. The new terminal makes it the largest gateway to Africa. The airport is now also the biggest in Africa, reflecting the success of its anchor user, Ethiopian Airlines.

“I am very pleased to witness the realization of a brand-new terminal at our Hub. While Addis Ababa Bole International Airport has overtaken Dubai to become the largest gateway to Africa last year, the new terminal will play a key role in cementing that position, said Ethiopian Airlines Group CEO Tewolde GebreMariam.

The new terminal puts biosafety and biosecurity in mind, equipped with 60 check-in counters, 30 self-check-in kiosks and ten self bag-drop services, which will help make the airport more contactless, especially during the pandemic. The airport terminal also has 16 immigration counters and 16 central screening areas for departing passengers. It also has three contact gates for wide-body aircraft and ten others for passengers, equipped with moving walkways, panoramic lifts, and escalators.

Ethiopian Airlines’s Vision 2025

The expansion is part of the Ethiopian Airlines Vision 2025, a 15-year growth plan to cement the airline’s position as Africa’s leading Carrier. Aviation infrastructure is a crucial pillar of the vision, evident in the airline’s continuous investment in expanding its facility. In 2017, the airlines started works which developed the airport’s Terminal 2.

Ultimately, the airline targets to expand Bole International Airport to a mega airport, with a capacity of 100 million passengers.

Other pillars in the airlines’ Vision 2025 include securing the right fleet, human resource development, and systems.

Source: https://kenyanwallstreet.com/ethiopian-airlines-new-terminal-bole-airport/

A prototype of KLM Royal Dutch Airlines’ futuristic-looking flying wing aircraft just took its first flight in Germany – take a look at the Flying-V

A scaled model of KLM Royal Dutch Airlines’ aircraft of the future just took flight for the first time in a milestone event for the Dutch flag carrier’s push for more efficient and environmentally responsible aircraft.

Engineers got their first look at what might one day by the new flagship of KLM’s fleet in late August when the futuristic-looking Flying-V demonstrator successfully took to the skies above Germany. The remote-controlled flight was the culmination of two-year’s work of engineers from KLM and the Delft University of Technology, also known as TU Delft.

The Flying-V differs from conventional aircraft as the fuselage and wings are merged to form one giant flying wing. New long-range aircraft from Airbus and Boeing focus on efficiency through the use of composites and fuel-efficient engines, but flying wing aircraft take efficiency to the next level with a radically new aerodynamically friendly fuselage design that enables longer ranges and better fuel performance.

Researchers say the design will reduce fuel consumption by 20% from today’s most advanced aircraft such as the Airbus A350 and Boeing 787 Dreamliner, both of which are currently employed by Air France-KLM, parent company to the Dutch carrier and one of the largest airline groups in Europe.

KLM first announced its investment in designing the craft in conjunction with TU Delft in June 2019 at the International Air Transport Association’s annual general meeting in Seoul, South Korea.

A scaled model of KLM Royal Dutch Airlines’ Flying-V aircraft.

Airlines and aircraft manufacturers are looking beyond today’s conventional aircraft into the designs of the future with the flying wing design gaining traction. Industry trends call for smaller and more efficient aircraft in contrast to the golden age of aviation that demanded larger aircraft like the four-engine Boeing 747 that was once required for non-stop long-range travel .

KLM says the Flying-V would have the same wingspan as an Airbus A350 aircraft , which would allow it to utilize existing airport gates and taxiways, a problem Boeing engineers had to solve with the new folding wing-equipped 777X . And despite being able to carry roughly the same number of passengers, the Flying-V will be able to fly farther than the A350 with the same fuel load.

Passenger cabins would likely be split between the two legs of the V-shape fuselage design while turbofan engines powering the wing would rest on top of the fuselage instead of below the wing, a rare but proven design.

KLM and TU Delft engineers and researchers headed to an airbase in neighboring Germany for the first flight where the scaled model was manned by a drone pilot directing the aircraft via remote control.

“It’s been two years of intense stressful work to reach this moment,” Malcolm Brown, TU Delft’s chief engineer for the Flying-V testing program, said in a video of the event . “And then, to have it confirmed that it flies, all of that hard work, it was worth putting in all of the hours making sure everything’s correct and built properly, built accurately, and it pays off.”

Though not a full-size prototype, the scaled model proves that the aircraft is aerodynamically sound and can fly as designed. It’s now up to the two companies to build the full-size prototype that can hold passengers and people, an investment potentially calling for billions in research and development.

European aircraft manufacturing giant Airbus revealed its flying wing demonstrator in February at the Singapore Airshow 2020 , signaling its interest in the “blended wing” design type as a potential direction for its commercial aircraft lineup. Interior renderings show parallel passenger cabins that take advantage of the aircraft’s width to house additional passengers

The US military has its own flying wing, a stealth bomber known as the B-2 Spirit that’s been serving the Air Force since 1993, according to Military.com . Designed for speed, stealth, and range, the B-2 Spirit can fly up to 6,000 nautical miles, according to the US Air Force , without stopping thanks to its aerodynamically friendly design that commercial airlines hope to one day take advantage of, though flying passengers instead of munitions.

KLM hasn’t given a timeline as to when the Flying-V can be expected, but normal aircraft development can last around 10 years from the drawing board to certification.

Source: https://africa.businessinsider.com/transportation/a-prototype-of-klm-royal-dutch-airlines-futuristic-looking-flying-wing-aircraft-just/9xdw1vm

Emirates resumes flights to Thailand, but many travellers can’t currently go

Emirates has resumed flights to Bangkok today, September 1.

The Dubai airline is now operating daily passenger flights to the Thai capital from the UAE.

However, only a very limited number of people can actually travel on Emirates’s newly announced flights as the resumption of service comes after Thai authorities extended a ban on international flights to the country until September 30. Plus, Thai consulate in Dubai has said that Thai citizens cannot take these flights.

Fares from Dubai to Bangkok start from just Dh2,745 return, but before you go planning your next holiday you’ll have to check if you fit into the restricted list of passengers who are currently allowed to enter Thailand.

Who can travel to Thailand?

All nationalities, other than Thai, currently need a visa to enter the country, but tourist and transit visas are still not accepted. This means that thoughts of a last-minute summer trip to Thailand are currently out of the question.

Other than citizens, the country is open to foreigners that are a spouse, parent or child of a Thai national, or who hold permanent residency in the country.

For business travel, those who aren’t Thai can enter the country if they have a work permit, are on diplomatic or consular missions or are a representative of a government organisation.

Students can fly back into Thailand as can those travelling for medical reasons, along with up to three guardians. This does not apply to anyone seeking Covid-19 medical treatment. Airline flight crews are also allowed into Thailand.

Travellers who do meet these restrictions must first obtain permission from the Thai embassy in the UAE before travelling, as well as getting several other documents.

These include a certificate of entry, fit to fly documentation, a negative Covid-19 PCR test result and health insurance covering treatment for the virus of no less than $100,000 (Dh367,250).

Travellers also have to quarantine for 14 days and must book state-approved accommodation before they can book flights with any airline.

Thai citizens cannot currently fly on Emirates commercial flights

Thai citizens hoping to return to the country from the UAE can do so, but at the moment they cannot fly on Emirates flights. The Thai consulate in Dubai clarified this on its Facebook page.

“Emirates airline has been approved by the Civil Aviation Authority of Thailand to operate commercial flights to Bangkok currently from the period of September 1 – October 24. However, the above-mentioned commercial flights are operating only for ‘non-Thai citizens’,” it said.

It also states that Thai citizens who are UAE residents must only travel to Thailand on approved flights organised by the Thai embassy in Abu Dhabi and the Thai consulate in Dubai. The next repatriation flight will depart Abu Dhabi on September 9, operated by Etihad.

Etihad is operating to Bangkok, but the national airline of the UAE confirmed to The National that these flights are not currently on general sale.

Thailand’s tourism minister was pushing for an October 1 reopening date for tourism, but authorities have said no further steps have been taken towards this. When travel does open, tourists are expected to have to quarantine and entry will be limited to those travelling from select countries.

Source: https://www.thenational.ae/lifestyle/travel/emirates-resumes-flights-to-thailand-but-many-travellers-can-t-currently-go-1.1071165

Flights give hope to tourism, hotels at 30% occupancy

Kenya’s travel and hospitality industry is slowly picking a month after resumption of international and domestic flights.

International airlines, among them Qatar Airways, KLM, Air France, British Airways, Emirates and Turkish Airlines have resumed flights to Nairobi, albeit with low frequencies as Covid-19 continues to limit global movement.

National carrier Kenya Airways and Ethiopian Airlines are also connecting the country to different destinations, with Ethiopian boosting connectivity to Mombasa with direct international flights.

Yesterday, hotels at the Coast, Nairobi and lodges inside parks reported average occupancy of between 25-40 per cent, majority being domestic tourists. 

The Jomo Kenyatta International Airport has recorded a number of international visitors mainly business travellers, according to officials, and Kenyans living abroad taking a break from Europe, the US, UAE and other African countries.

“We are starting to see international arrivals though the numbers are still low,” a ministry official, told the Star yesterday saying Tourism CS Najib Balala is expected to give an update in the next three to five days.

The lifting of cessation of movement into and out of Nairobi, Mombasa and Mandera Counties by President Uhuru Kenyatta in July, that opened resumption of domestic flights on July 15, and SGR passenger services has also boosted domestic tourism.

The growing hotel business is from nill bookings between March-June when most facilities were shut over Covid-19.

Baobab Beach Resort reported 40 per cent occupancy on weekdays and 60-70 per cent over the weekends.

Baobab which runs three luxurious properties – The Baobab, The Maridadi, and Kole Kole, has also noted international inquiries for November and December into next year.

“Things are beginning to look up for us,” general manager Sylvester Mbandi told the Star.

Most hotels in Diani have re-opened, among them Neptune, Pinewood, Nomads, Lantana Galu, Diani Sea Lodge, Diani Resort, Swahili Beach, Diani Reef and Leopard Beach Resort.

“We have started receiving guests but occupancy is still low. The market feedback especially from Nairobi is positive, people want to travel and support recovery of the industry which we appreciate,” Joan Ndungu, residences manager-Leopard Beach Resort said.

The facility is averaging 30 per cent on occupancy.

In North Coast, PrideInn group of hotels reported occupancy of 30–40 per cent at its Shanzu Beach Resort, Mombasa, and 25-30 per cent at its Nairobi Pride Inn Azure hotel located at Westlands.

“August has been slow but climbing progressively. International inquiries are coming but quarantine measures for different countries are limiting travel,” managing director Hasnain Noorani told the Star.

“In Nairobi, business is mainly driven by conferences which is yet to pick up,” he added, calling on the government to support its institutions to hold conferences at hotels which will help in recovery.

Parks in the Tsavo and Amboseli circuits are currently attracting domestic tourists from Nairobi and Mombasa, according to the region’s Kenya Association of Hotel Keepers and Caterers (KAHC) chairman Willy Mwadilo.

Mwadilo who is also the general manager Salt Lick Safari Game Loddge and Taita Hills Safari Resort reported 30-40 per cent occupancy at his facilities.

He has called on Kenya Railways to allow SGR stops at Mtito Andei and Voi towns to support facilities in the parks.

“There is potential for business both for them and hotels in the Tsavo National Park,” Mwadilo said, noting the current express train is denying travellers an opportunity to visit the Tsavo.

KAHC national vice chairman Wasike Wasike said on average, most hotels are operating at a high of 30 per cent and the lowest are at between five and 10 per cent.

“There is some light at the end of the tunnel,” Wasike said in a telephone interview.

He said though the country and industry is open for business, the international market is yet to respond as expected.

International tour operators TUI and FTI Group have started planing for scheduled charter flights direct to Mombasa, said Wasike, with tourists from Germany expected in October-November at the beginning of winter.

Numbers are expected to remain low this year, with Tourism CS Najib Balala projecting international arrivals will fall by 90 per cent.

Based on last year’s 2, 048,833 total arrivals, the country is likely to miss out on about 1.8 million (1,843,949) international arrivals this year as a result of Covid-19, which has dampened the global travel and hospitality industry.

Earnings from the sector are expected to fall by 80 per cent, according to the CS.

This translates to Sh130.9 billion based on 2019 total industry revenues where the sector generated a total of Sh163.6 billion.

Between March and June, the country lost 50 per cent of total annual tourism earnings which is about Sh81.8 billion.

“We expected to earn almost Sh189 billion in 2020-21. Unfortunately from February till June, we lost Sh80 billion and now July and August we are still calculating, but definitely we have no international tourism,” Balala said at a recent event.

“We are concerned but it is beyond us. It (Covid-19) is an international pandemic,” Balala said.

Source:  https://www.the-star.co.ke/business/kenya/2020-09-02-flights-give-hope-to-tourism-hotels-at-30-occupancy/

Air France, Qatar Airways & United Airlines are latest to restart international flights from Houston

Air France, Qatar Airways and United Airlines made international service restarts on Sept. 2 from Houston, meaning nearly two-thirds of the airlines that operated international service at Houston Intercontinental Airport (IAH) and Houston Hobby (HOU) airports prior to the COVID-19 pandemic have now returned.

“Houston has the most airlines providing service to Mexico [among markets in Texas],” Houston Airports said in a statement.

“Some airlines—[Mexico’s] VivaAerobus and Volaris—are even adding new service to select destinations they had not previously served from Houston.”Routes to thirteen airports in Mexico are now operating from Houston, and flights to 14 other Latin American and Caribbean cities are also available from the city. There are also eight intercontinental destinations being served by IAH: Amsterdam (AMS); Doha (DOH), Qatar; Dubai (DUB); Frankfurt (FRA); Istanbul (IST); Paris (CDG); Taipei (TPE), Taiwan; and Toronto (YYZ).

The following airlines have restarted international service to and from Houston: Aeromexico, Air Canada, Air France, Emirates, EVA Air, KLM, Lufthansa, Qatar Airways, Southwest Airlines, Spirit Airlines, Turkish Airlines, United Airlines, VivaAerobus and Volaris.

“We are an international city with an economy that thrives on global connectivity,” Houston mayor Sylvester Turner said. “These significant steps in restoring air service will help Houston begin to recover from the economic challenges created by the COVID-19 pandemic. I can assure you that this meaningful and significant restoration of international air service is being matched with a strong emphasis on safety.” 

Photo credit: Houston Airports

Source: https://www.routesonline.com/news/29/breaking-news/293524/air-france-qatar-airways-and-united-airlines-are-latest-to-restart-international-flights-from-houston/