Matiang’i: We can’t play dead, Kenya is ready for travel

Travel restrictions will soon be lifted following the launch of the Tourism and Travel, Health and Safety Protocols.

Interior CS Fred Matiang’i on Wednesday said the country is now safe for travel resumption.

“Kenya is ready for travel. Kenyans should know that,” he said.

 

 

Speaking during a meeting with other tourism stakeholders, Matiang’i said the country will continue to provide security for both locals and foreign travelers to curb the risk of accelerated infections.

“It’s now a reality that the virus could become endemic and we must all be prepared to live with it and resume normalcy under the prevailing circumstances as global efforts to find a vaccine continues,” he said.

Matiang’i reiterated that the sector continues to be among top priority in the government measures to restore the country’s economy. 

“We can’t sit back, play dead and wait for some magic so we can begin to live normally. There is no country that is an example of what we ought to be doing. Therefore we have to learn for ourselves,” he said.

His sentiments were echoed by Health Cs Mutahi Kagwe who said Kenyans need to learn to live with the virus.

In April, the government suspended all international travel in a raft of measures to control virus spread.

Consequently, major events across sectors including hospitality, design, sports, technology among others were cancelled to stem the spread of the disease.

 

Source: https://www.the-star.co.ke/news/2020-07-01-matiangi-we-cant-play-dead-kenya-is-ready-for-travel/

 

Jambojet seeks to expand into cargo business

Budget carrier Jambojet is seeking approval to fly between cities in Kenya without stopping at its hub in Nairobi and also expand into cargo business.

If it secures the regulatory nod, the carrier, for instance wants to fly directly from Mombasa to Kisumu and from Kisumu to Eldoret- Malindi-Lamu.

Jambojet is also seeking permission to expand its existing international destinations, which could see it fly to Dare Salaam, Zanzibar, Moroni, Bujumbura, Addis Ababa and Goma if the Kenya Civil Aviation Authority (KCAA) grants the approval.

“We are waiting for the comments from the public before taking it to our board for approval. Once it is approved, then they will immediately commence,” said KCAA Director- General Gilbert Kibe.

Mr Kibe said the airline is seeking permission to open other bases in regional cities such as Mombasa and Kisumu.

Currently, Jambojet flies to two international destinations in Kigali and Entebbe. The airline, a subsidiary of the Kenya Airways, had planned flights to Mogadishu but did not get the desired time slot, hence suspended the route.

In a gazette notice dated May 29, Jambojet also announed that it wants to vary its licence so that it could also enter into cargo business. At the moment, the airline only carries passenger cargo, operating from its base at Jomo Kenyatta International Airport (JKIA).

The fresh request comes at a time when the aviation industry is in turmoil following the disruptions caused by the Covid-19 that has seen airlines grounded.

It is not clear how Jambojet will manage the Addis Ababa route given that it is dominated by Ethiopian Airlines, which offers relatively lower price on tickets when compared with other carriers.

The carrier has been expanding its fleet and last year acquired four new aircraft as it sought to expand to regional countries.

According to the gazette notice, the airline will use aircraft B737, implying that the carrier plans to acquire a new high capacity aircraft for regional routes.

It will also deploy DHC8 and ATR72 based at the JKIA and Mombasa, meaning that Jambojet will have some of its airplanes based at the coastal city.

The Nairobi- Kigali route began in November last year while the Entebbe route started in 2018.

The airline has said before it sought to enable more passengers to fly affordably and reliably from its hub in Nairobi to the two destinations.

Source: https://www.businessdailyafrica.com/corporate/companies/Jambojet-seeks-to-expand-into-cargo-business/4003102-5584550-5qpj61/index.html

KQ Projects Sh50bn Revenue Loss As Aviation Industry Reels From Shutdown

KQ Chief Executive Officer Allan Kilavuka told journalists the airline is ready to resume flights by July in order to mitigate further losses associated with the global pandemic.

“Our estimates is that since January to date, we have probably lost around USD 100 million (Sh10 billion), when we estimate to the end of the year we will loose USD 400 million to 500 million (Sh40-50 billion),” Kilavuka said.

KQ posted a net loss of Sh12.98 billion for the year which ended December 2019, compared to the Sh7.558 billion loss posted a year earlier.

While affirming the airline’s readiness to resume flying, KQ’s Chairperson Michael Joseph pleaded with the government to open the skies in order to facilitate resumption of flights which will revive revenues generated from the airline-related businesses.

The Airline’s CEO affirmed that resumption of flights will reduce the financial burden felt by the tourism and hospitality sector, allow tourists to the country and secure jobs for many Kenyans.

“Our plea is that can we start flying as soon as possible, even if it is at reduced level, any commercial flights will help us a lot, so can we start earning revenue, bring  tourists to Kenya, bring business meetings, hotels will open, create more job and get more people to work,” he said.

“There is a limit to how much business can be conducted virtually,” the KQ Chairperson asserted.

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The government banned all international flights in March with the exception of cargo flights whose crew are limited to a maximum of three.

The situation was further compounded by ban on domestic flights which took effect when the government-imposed cessation of movement which is now in effect in Nairobi Metropolitan Area, Mombasa and Mandera counties.

KQ’s CEO further noted that the firm has suspended its expansion drive and will not launch new routes for the next two years due to financial inadequacies.

Upon resumption of flight operations, Kilavuka noted that national carrier will insist of wearing of mask by passengers, ruling out the possibility of adjusting sitting capacity in its aircraft to facilitate social distancing saying the reconfiguration may not be economically viable.

“We will not do social distancing because there is little scientific proof that there is extra risk of transmission. Reducing seats will be uneconomical and tickets will rise by 60 per cent,” he said while responding to a series of questions from journalists.

As of July 26, Kenya had reported 132 virus-related deaths. Documented infections since March 14 totaled 5,384 people with 1,857 patients having recovered since April 1.

Source: https://www.capitalfm.co.ke/news/2020/06/kq-projects-sh50bn-revenue-loss-as-aviation-industry-reels-from-shutdown/

Travel agents adopt no-credit policy for post-virus recovery

A travel agents lobby has directed its members to cease extending credit facilities to customers, citing poor cash flow in the wake of Covid-19 outbreak.

The move by the Kenya Association of Travel Agents is set to affect corporates, State agencies, non-governmental entities and traders who book for travel but pay in an extended period.

Chief executive Agnes Mucuha said the policy takes effect upon resumption of aviation travel and would ensure the businesses only deal with cash-paying clients to remain operational post-pandemic.

“All travel agents have been adversely affected by the Covid-19 pandemic. They have not been trading, and have been operating on negative cash flows and zero sales in the past three months,’’ she said.

The closure of the airspace on the March 26, led to suspension of flights while travellers cancelled bookings.

The industry had been operating on a 15-60 days maximum credit period, and within the commercial agreements signed by the trading parties, while offering customers the option to pay via credit cards, bank transfers, mobile money, current cheques or cash.

“The agent businesses are cash negative and their pursuit of debt collection from government agencies, corporate companies, NGOs and diplomatic missions has been coupled with extreme difficulties,” said Ms Mucuha.

Source: https://www.businessdailyafrica.com/news/Travel-agents-adopt-no-credit-policy/539546-5580438-qn2jvhz/index.html

Seven new airlines choose Hahn Air to increase GDS sales

Ticketing and distribution specialist Hahn Air has signed contracts with seven new airlines this year.

Air Century, Cambodia Airways, Divi Divi Air, Eastern Airlines, Eastern Airways, Emetebe Airlines and Thai Smile Airways have now joined the Hahn Air partner portfolio which includes more than 350 airlines.

By using one or more of Hahn Air’s solutions, the seven new partners generate incremental revenue in additional markets.

“Hahn Air offers solutions for airlines of any business model”, comments Alexander Proschka, Executive Vice President Commercial.

 “For example, US carrier Eastern Airlines and Thai Smiles Airways from Thailand opted for our HR-169 product. They can sell their flights under their own two-letter-codes in the GDS while unlocking their non-BSP markets for indirect ticket sales. Our new X1-Air partners Emetebe Airlines, Eastern Airways, Air Century and Divi Divi Air outsourced their complete indirect distribution to Hahn Air Technologies. They can now sell their flights in Amadeus, Sabre and Travelport under the code X1. And finally, Dual Partner Cambodia Airways is combining the HR-169 and H1-Air products, thereby exploiting the full potential of primary and secondary markets.”

With its ticketing and distribution solutions, the German airline Hahn Air facilitates global business between travel agencies and airlines. 

Hahn Air holds contracts with all major GDSs and is a member of the IATA Clearing House, almost all IATA BSPs as well as the settlement systems ARC and TCH.

With this extensive technology infrastructure, Hahn Air enables its partner airlines to sell tickets through more than 100,000 travel agencies in 190 markets.

Alexander Proschka further said, “Our products are cost efficient, effective and quickly to implement and therefore particularly interesting for airlines looking to kick-start their business after the corona-induced restrictions.”

 

Kenya Airways’ State takeover, delisting Bill tabled in Parliament

A Bill that will guide the sale of Kenya Airways (KQ) to the State was tabled in Parliament on Thursday, setting the stage for the buyout of minority shareholders at a premium and converting shares held by banks into Treasury bonds.

MPs will now start debate on The National Aviation Management Bill 2020 as the National Assembly seeks to have the government take back full control of the national carrier by October.

The loss-making airline, which is 48.9 percent government-owned and 7.8 percent held by Air France-KLM, was privatised 24 years ago but sank into debt and losses in 2014.

“We are ready to complete the transactions once Parliament passes the Bill,” Treasury Secretary Ukur Yatani told the Business Daily in an interview.

“A lot of work has been done in the background including striking an agreement with KLM and talks are advanced with banks on conversion of their equity to bonds.”

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.

“We have already developed a formula for valuing the shares owned by the minority shareholders,” Solomon Kitungu, the Principal Secretary at the Ministry of Transport, said Thursday.

“We cannot make it public before we share with CMA (Capital Markets Authority) because Kenya Airways is a listed firm.”

Kenya Airways shares closed trading at Sh2.49 on Thursday compared to Sh9.65 in May 2018.

David Pkosing, the chairman of parliament’s transport committee, said Thursday MPs will seek to pass the Bill swiftly.

Mr Pkosing said the committee has set a budget of Sh800 million for purchase of the minority investors, representing a premium of 101 percent.

A consortium of local lenders, who acquired 38 percent of the company’s equity during the 2017 restructuring, could be paid through government debt, possibly in 10-year Treasury bonds, Mr Yatani said.

The lenders’ shares have a market value of Sh5.38 billion. KQ issued the banks the 38.1 percent stake to settle their claims of Sh16.9 billion.

A failed expansion drive and a slump in air travel forced the airline to restructure Sh200 billion of debt in 2017. But Kenya Airways still needed cash for fleet and route expansion amid growing competition from Ethiopian Airlines and Emirates.

Kenya wants to emulate countries like Ethiopia, which runs air transport assets – from airports to fuelling operations – under a single company, using funds from the more profitable parts to support others.

Under the Bill, Kenya Airways will become one of three subsidiaries in an Aviation Holding Company. The others will be Kenya Airports Authority, which will operate all the country’s airports including Jomo Kenyatta International Airport (JKIA) in Nairobi, under an investment arm dubbed Aviation Investment Corporation.

Nationalisation will exempt Kenya Airways from taxes on engines, maintenance and fuel, allowing it to sell cheaper tickets, Mr Pkosing said. The airline charges more than competitors, forcing price-sensitive passengers through hubs like Addis Ababa and Kigali.

The Treasury last month turned down KQ’s request for a Sh7 billion emergency bailout after its aircraft were grounded due to the restrictions on international passenger flights sparked by the coronavirus disease pandemic.

Kenya Airways needed the money to foot maintenance costs of grounded planes, pay salaries and settle utility bills like security, water and electricity.

Mr Yatani said the State was keen on a long-term solution anchored on nationalisation of Kenya Airways, arguing that the carrier’s financial troubles went beyond the Covid-related woes.

KQ sank deeper into financial red after it posted a Sh12.98 billion net loss for the year ended last December as increasing operating costs offset growth in revenues.

The airline’s performance is set to fall further in the year ending December after government and global restrictions to curb spread of Covid-19 saw it ground all flights on March 22.

The national carrier has been operating only cargo flights for essentials such as medicine but this has not been enough to sustain business given that it was already in a loss territory pre-coronavirus.

Source: https://www.businessdailyafrica.com/news/KQ-State-takeover-delisting-Bill-tabled/539546-5583210-1136cwz/index.html

 

New aviation protocols ready as domestic flights set to take off

You will not be required to have a Covid-19 free certificate to fly, as had been expected, but you must not show any fever or coronavirus symptoms before you board an aircraft for the country’s airports.

This is part of the new protocols formulated by the Ministry of Transport and aviation players for air travel during the Covid-19 pandemic in preparation for the resumption of flights.

The protocols come barely two weeks after President Uhuru Kenyatta directed their formulation, and set the stage for the reopening of the airspace for domestic flights.

On Sunday Transport Principal Secretary Samuel Kitungu toured the Jomo Kenyatta International Airport to assess the measures the Kenya Airports Authority (KAA) had put in place for the resumption of passenger operations.

AIR TRANSPORT

The Protocol for Air Travel Operations during The Covid-19 Public Health Crisis exclusively obtained by Nation provides the best practices on conducting commercial passenger air transport while ensuring the health and safety of the passengers, staff and crew by through operations that minimise the risk of transmitting the coronavirus.

Transport and Infrastructure Cabinet Secretary James Macharia said that the adverse impact of the virus had been experienced in most sectors of the economy, with the aviation industry being among the worst hit, necessitating a protocol to guide air travel and ensure its resumption.

“This protocol has been developed to help contain the spread of the virus and ensure that the sector is opened up, taking cognizance of the measures put in place by the Ministry of Health,” Mr Macharia said.

The protocols, which will be reviewed every three months, cover five key areas: the airports, passenger management, aircraft and arrival process, the management of aircrew and operators, and disinfection and sanitisation.

The implementation of the protocol will see the airport management agency, KAA, invest in new safety and health equipment.

KAA is expected to invest in whole-body scanners to avoid invasive screening both for the safety of the passengers and staff. The authority is also expected to upgrade its security cameras and CCTVs to be able to use biometrics even when people are wearing face masks.

EASE CONGESTION

To ease congestion, the agency will be required to install four extra security screening machines at the PSY at JKIA to ease congestion.

“Unlike in the past, passengers and airline operator crew shall be advised to remove items such as belts, and items from their pockets like wallets, keys and phones, and put them in their carry-on bags instead of the bins to reduce touchpoints during screening. KAA shall dedicate special bins for shoes only and disinfect them regularly, “the new protocols say.

On passenger management, all passengers must have their temperature checked using thermal scanners and thermal guns, before they enter the airport to identify those whose temperature is 37.5 degrees or higher.

“Where a passenger’s body temperature will be found to be 37.5 degrees or higher, temperature checks will be repeated at least once for confirmation purposes.

‘‘Any passenger with an elevated body temperature shall be referred to secondary assessment by port health services present at the airport for Covid-19 testing and will not be allowed to travel,” the new rules say.

Passengers will be encouraged to check in online, with detailed information for contact tracing before they are allocated a seat and provided with their boarding pass.

Airlines will also be expected to have their own contracted medical team at the check-in counters to help assess the passengers’ fitness to fly.

MEDICAL TEAM

“Before accepting any passengers on the flight, the air operator’s medical team, in conjunction with the Port Health and Air Operators Passenger Services, shall check the health conditions of the passengers by screening and profiling.

Confirmed or suspected cases, or those who can pose potential health risks shall be notified at the earliest opportunity and not be accepted for travel,” the protocol says.

The protocols will also allow passengers to carry with them up to a maximum of 100ml of liquid sanitisers (in a transparent package) as part of carry-on luggage.

Aboard the aircraft, the operators will be expected to provide guidance material on preventive measures, including hand hygiene, particularly before eating or drinking, and after use of the toilet.

Other guidance materials expected include the appropriate use of face masks, limiting contact with cabin surfaces and reduced movement in the aircraft.

The protocol also seems to appreciate the difficulty airlines might have of reworking their seating arrangement to conform to the social distancing rule, instead urging the air operators will ensure, to the extent possible, physical distancing among passengers.

Source: https://www.nation.co.ke/kenya/news/new-aviation-protocols-ready-as-domestic-flights-set-to-take-off-734614

 

IATA Proposes Alternatives to Quarantine

The International Air Transport Association (IATA) urged governments to avoid quarantine measures when re-opening their economies. IATA is promoting a layered approach of measures to reduce the risk of countries importing COVID-19 via air travel and to mitigate the possibility of transmission in cases where people may travel while unknowingly being infected.

“Imposing quarantine measures on arriving travellers keeps countries in isolation and the travel and tourism sector in lockdown. Fortunately, there are policy alternatives that can reduce the risk of importing COVID-19 infections while still allowing for the resumption of travel and tourism that are vital to jumpstarting national economies. We are proposing a framework with layers of protection to keep sick people from traveling and to mitigate the risk of transmission should a traveller discover they were infected after arrival,” said Alexandre de Juniac, IATA’s Director General and CEO.

IATA encourages a layering of bio-safety measures in two areas:

Reducing the risk of imported cases via travellers

 

  • Discouraging symptomatic passengers from traveling: It is important that passengers do not travel when ill. To encourage passengers to “do the right thing” and stay home if they are unwell or potentially exposed, airlines are offering travellers flexibility in adjusting their bookings.
  • Public health risk mitigation measures: IATA supports health screening by governments in the form of health declarations. To avoid privacy issues and cut the risk of infection with paper documents, standardized contactless electronic declarations via government web portals or government mobile applications are recommended. Health screening using measures such as non-intrusive temperature checks can also play an important role. Although temperature checks are not the most effective screening method for COVID-19 symptoms, they can act as a deterrent to traveling while unwell. Temperature checks can also shore-up passenger confidence: in a recent IATA survey of travellers, 80% indicated that temperature checks make them feel safer when traveling.
  • COVID-19 testing for travellers from countries perceived to be “higher-risk”: When accepting travellers from countries where the rate of new infections is significantly higher, the arrival authority could consider COVID-19 testing. It is recommended that tests are undertaken prior to arrival at the departure airport (so as not to add to airport congestion and avoid the potential for contagion in the travel process) with documentation to prove a negative result. Tests would need to be widely available and highly accurate, with results delivered quickly. Test data would need to be independently validated so as to be mutually recognized by governments and securely transmitted to the relevant authorities. Testing should be for active virus (polymerase chain reaction or PCR) rather than for antibodies or antigens.

Mitigating Risk in Cases Where an Infected Person Does Travel

 

  • Reducing the risk of transmission during the air travel journey: IATA encourages the universal implementation of the Take-Off guidelines published by the International Civil Aviation Organization (ICAO). Take-Off is a temporary risk-based and multi-layered approach to mitigate the risks of transmitting COVID-19 during air travel. The comprehensive Take-Off guidelines are closely aligned with the recommendations of the European Union Aviation Safety Agency EASA and the US Federal Aviation Administration (FAA). These include mask wearing throughout the travel process, sanitization, health declarations and social distancing where possible.
  • Contact tracing: This is the back-up measure, should someone be detected as infected after arrival. Rapid identification and isolation of contacts contains the risk without large-scale economic or social disruption. New mobile technology has the potential to automate part of the contact-tracing process, provided privacy concerns can be addressed.
  • Reducing risk of transmission at destination: Governments are taking measures to limit the spread of the virus in their territory that will also mitigate the risk from travellers. In addition, the World Travel and Tourism Council (WTTC) Safe Travel protocols provide a pragmatic approach for the hospitality sector to enable safe tourism and restore traveller confidence. Areas of the industry covered by the protocols include hospitality, attractions, retail, tour operators, and meeting planners.

“Safely restarting the economy is a priority. That includes travel and tourism. Quarantine measures may play a role in keeping people safe, but they will also keep many unemployed. The alternative is to reduce risks through a series of measures. Airlines are already offering flexibility so there is no incentive for sick or at-risk people to travel. Health declarations, screening and testing by governments will add extra layers of protection. And if someone travels while infected, we can reduce the risk of transmission with protocols to prevent the spread during travel or when at destination. And effective contact tracing can isolate those most at risk without major disruptions,” said de Juniac.

There are some hurdles to being able to implement the full suite of measures. “Data transmission, required for health declarations, testing and tracing, raises privacy concerns. And mutually recognized standards would be needed for testing. Governments have a common interest in finding solutions. The rapid agreement by governments to ICAO’s Take-Off guidelines demonstrates that progress on complex issues is possible where there is the political will to do so,” said de Juniac.

There is every economic incentive to make a layered approach work. The World Travel and Tourism Council estimates that travel and tourism accounts for 10.3% of global GDP and 300 million jobs globally (direct, indirect and induced economic impact).

Mandatory quarantine measures stop people from traveling. Recent public opinion research revealed that 83% of travellers would not even consider traveling if quarantine measures were imposed on travellers at their destination. And analysis of trends during the lockdown period shows that countries imposing quarantine saw arrivals decrease by more than 90%—an outcome that is similar to countries that banned foreign arrivals.

“A layered approach to safety has made flying the safest way to travel while still enabling the system to function efficiently. That should be an inspirational framework to guide governments in protecting their citizens from the terrible risks of both the virus and joblessness. Quarantine is a lop-sided solution that protects one and absolutely fails at the other. We need government leadership to deliver a balanced protection,” said de Juniac.

 

Dubai to welcome tourists from July 7

Airports in Dubai will welcome tourists from July 7, 2020, it was announced on Sunday. The tourists will be required to present a recent Covid-19 negative certificate or undergo testing at the airport.

The Supreme Committee of Crisis and Disaster Management added that the emirate’s airports would start receiving residents stranded abroad from tomorrow (June 22). It also said that citizens and residents will be permitted to travel overseas from June 23.

This came as the committee announced new protocols and conditions for citizens, residents and tourists travelling into or out of Dubai airports.

The committee said the announcements will allow thousands of people affected by worldwide restrictions in passenger air traffic since the start of the Covid-19 pandemic to resume their travel plans.

The decisions have been announced as per directives issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, and the follow-up of Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai.

Dubai to welcome tourists from July 7 (KT24386621.JPEG)

 

Dubai to welcome tourists from July 7 (KT24387621.JPEG)

 

Dubai to welcome tourists from July 7 (KT24388621.JPEG)

Dubai to welcome tourists from July 7 (KT24389621.JPEG)

 

Source: https://www.khaleejtimes.com/uae/dubai/dubai-to-welcome-tourists-from-july-7

Impact of the national budget on the travel industry

The Kenya Association of Travel Agents (KATA) on Friday June 19, 2020 held an online meeting to assess the impact of the national budget on the travel industry.

KATA hosted their appointed auditors Ronalds LLP who took the members through the Kenya Budget 2020/ 2021 and how it will affect business for travel agents.

Ronalds partner Mr Ronald Bwosi took members through a presentation on the Tax Amendment Act 2020, Finance Bill 2020 and the 2020/2021 budget.

Tax Laws amendment Act, 2020, he explained, brings into effect the tax measures directed by the President Uhuru Kenyatta during his announcement of the governments intentions to manage the COVID-19 outbreak.

“The Amendment Act also comes with other measures that aim at increasing the revenue channels and thus affect the operations of many tax payers significantly,” Mr Bwosi said.

His Colleague Mr Peter Mwanja further explained that the Finance Bill, 2020 has re-introduced some of the tax proposals initially proposed by the Tax Amendment Bill, 2020 but were rejected by the parliament. “Furthermore, the bill provides additional tax changes and other miscellaneous amendments,” he further said.

KATA members were engaged interactively in a session hosted by KATA CEO Ms. Agnes Mucuha, where they explored the various bills and the budget and its impact on the ailing businesses that have been closed down due to the highly contagious global pandemic.

KATA Chairman Mr Mohammed Wanyoike thanked the team of auditors for breaking down the intricacies to the agents, a move he said, will help prepare travel agents for the new business order.