Etihad Airways on Wednesday launched a voucher giving 50 per cent extra cash value to passengers for travel during the two-year period starting August 1. Air travel across the world has drastically reduced amid the coronavirus pandemic and airlines have been taking various measures to improve cash flow.

In a press release, Etihad said passengers can purchase the travel voucher, any time between June 10 and June 24, and they will get 50 per cent extra cash value in the voucher, which can be used for travel during the two-period starting August 1.

Scheduled international passenger flights continue to remain suspended in the country since March 23.

However, after a gap of two months, domestic passenger flights began in India from May 25.

“Etihad Travel Vouchers are available in increments of USD 250 to a maximum of USD 65,000. The value of the purchased voucher plus 50 per cent extra credit will be added to a Travel Bank account for future redemption on flights, upgrades and extras,” said the airline.

Global airlines body IATA said on Tuesday that carriers across the world are expected to lose USD 84.3 billion in 2020, calling it the “worst year in the history of aviation”.

Even as the number of coronavirus cases continue to rise globally, various countries have resumed domestic and international air travel, albeit with much precautions and in a curtailed manner.

Source:
https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/etihad-airways-launches-travel-voucher-offering-50-cash-bonus/articleshow/76307213.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Kenya Airways (KQ) has started cargo flights to the United Arab Emirates (UAE) as the carrier seeks to generate more income from freight following the grounding of passenger services.

From last week, the carrier will initially run two weekly flights to the Sharjah International Airport until demand grows.

Dick Murianki, director of KQ Cargo, said the airline has continued to increase its focus on cargo operations “during these unprecedented times” of the Covid-19 pandemic, keeping essential goods and supplies moving.

“We are very pleased to begin operating to Sharjah International Airport. This route serves as a strategic gateway linking cargo in Africa to the Middle East and other parts of the world. The Covid-19 crisis has come with many negatives, but it has also come with opportunities for us to leverage on, particularly with our cargo business,” said Mr Murianki

KQ will mainly carry meat products, including tropical fish, fresh fruit and flowers and general cargo to Sharjah and return with general cargo and high-tech goods.

Sharjah International Airport is considered a competitive freight hub in the UAE and provides opportunities to KQ to grow its cargo business.

“KQ has been implementing different strategies to boost its revenues and retain a competitive edge in the market all geared towards a turnaround of the business,” he said.

The carrier said despite the effects of Covid-19, Kenya Airways has been able to go into a new destination and the carrier is now able to take cargo from Sharjah directly to Nairobi.

The airline said trafffic had been increasing towards April, as most countries started making their own PPEs, which formed the bulk of the cargo when Corona broke.

“In April, we had high yield traffic movements of PPEs predominantly moving on charter basis. This segment is fizzling out given majority of countries have evolved locally production capabilities. What we see now is a gradual return to normal general cargo and perishable traffic,” said Mr Murianki.

KQ said with the expected return to service of passenger operations, cargo volumes are expected to improve to 3,500 tonnes by end of July from a low of about 2,000 at the moment.

Source: https://www.businessdailyafrica.com/news/KQ-starts-cargo-flights-to-UAE/539546-5573778-ctkvpez/index.html

 

The Kenya Association of Travel Agents (KATA) will soon be adopting a policy that will see travel agents cease extending credit facilities for travel to their customers.

Among the affected will be corporate companies, government agencies, NGOs and traders who book for travel and pay over an extended period of time.

This policy, KATA Board of Directors Treasurer Dr Joseph Kithitu said, will ensure that travel agents deal with cash paying clients and therefore are able to remain operational in times of crisis as seen with the COVID-19 pandemic.

To solve cash flow problems, Dr Kithitu emphasised on the need for travel agents to stop extending credit to their clients. “Travel post pandemic needs to be on cash basis. KATA is working with TRA on setting up frameworks that will see travel agents paid on cash basis,” Dr Kithitu said.

He noted that travel agents had undergone a traumatic period brought on by the pandemic that is highly contagious.

“Many businesses have closed down and have had to let go of staff because there is no money coming in with the travel restrictions that are in place.

“All we can do now is chase after payment from government, corporates and our other clients. Business during this period is made harder by the fact that airlines are not refunding travel agents for travel that was already booked during the Coronavirus period,” he stated.

He added, “with no credit extended to our clients, we will be able to align our businesses to deal with the new normal. We may not push as many volumes as before, but we will be able to remain operational even through such crisis”.

Since the first case of infection was first reported in the country in March, business has dropped to a negative for travel agents with the government announcing travel restrictions within the country and a ban on international flights as a way of mitigating the spread of the virus.

Travel agents remain hopeful that travel restrictions will be lifted and travel may resume under the laid down safety protocols to ensure that even as business runs, the spread of the virus remains contained.

Travelers may reach out to their trusted and certified KATA agents for more information on the current laid down procedures and protocols as advised by government.

Following the UAE Federal Government’s announcement to lift restrictions on transit passengers services, from 15th June Emirates will offer passenger services to 16 more cities on its Boeing 777-300ER aircraft. With travel restrictions remaining in place in most countries, customers are reminded to check entry and exit requirements before their journeys.

Flights to the following cities will be available for booking on emirates.com or via travel agents: Bahrain, Manchester, Zurich, Vienna, Amsterdam, Copenhagen, Dublin, New York JFK, Seoul, Kuala Lumpur, Singapore, Jakarta, Taipei, Hong Kong, Perth and Brisbane.

In addition, from 8th June Emirates will offer flights from Karachi, Lahore and Islamabad for travellers from Pakistan who wish to connect onwards to other Emirates destinations.

With this latest announcement, Emirates will be offering flights for passengers on the back of its scheduled cargo operations from Dubai to 29 cities, including existing flights to London Heathrow, Frankfurt, Paris, Milan, Madrid, Chicago, Toronto, Sydney, Melbourne and Manila (from 11th June).

Customers can book to fly between destinations in the Asia Pacific and Europe or the Americas, with a convenient connection in Dubai, as long as they meet travel and immigration entry requirements of their destination country.

Working closely with the UAE authorities, Emirates continues to take a measured and phased approach to flight resumption and rebuilding connections between Dubai and the world.

Health and safety first: Emirates has implemented a comprehensive set of measures at every step of the customer journey to ensure the safety of its customers and employees on the ground and in the air, including the distribution of complimentary hygiene kits containing masks, gloves, hand sanitiser and antibacterial wipes to all customers.

Travel restrictions: Customers are reminded that travel restrictions remain in place, and travellers will only be accepted on flights if they comply with the eligibility and entry criteria requirements of their destination countries. Residents returning to the UAE can check the latest requirements at: https://www.emirates.com/ae/english/help/flying-you-home/

Customers can find more information about Emirates’ flights and current services at: https://www.emirates.com/ae/english/help/essential-travel/#75478

Source: https://www.emirates.com/media-centre/emirates-offers-flights-for-passengers-to-29-cities-and-resumes-transits-through-its-dubai-hub/

 

Kenyan taxpayers are set to feel the full weight of owning a bigger stake of the national carrier, as the airline reported a $130 million (Ksh13 billion) full-year loss at a time when it is seeking a government bailout to sail through the Covid-19 pandemic.

Kenya Airways last year underwent a series of capital and debt restructuring that elevated taxpayers to the biggest shareholders of the financially troubled carrier.

The Treasury last year extended a $50 million bailout to the airline, and is currently evaluating another $70 million funding request to help the carrier cope with revenue loss during the coronavirus pandemic, which has disrupted air travel across the globe.

“As you know we have been grounded for nearly three months now and during that time we have maintained all 38 aircrafts whether flying or not flying, we have to pay our leases, we have to pay the insurance costs, and we have a number of costs that don’t go away whether you are flying or not flying. In addition, we still have to pay salaries and so we have asked for money from the government and we are still waiting to hear about that,” said the Kenya Airways chairman Michael Joseph at a press briefing this week.

De-listing from NSE

The airline has run short of cash to finance its operations including maintenance of aircrafts, payment of leases and employee salaries.

KQ is 48.9 per cent owned by the government and a group of 10 local banks that hold 38.1 per cent of its shares.

Other shareholders include KLM Royal Dutch Airline (7.8 per cent), employees (2.4 per cent) and other shareholders at 2.8 per cent.

But the airline is set to be delisted from the Nairobi Securities Exchange (NSE), after parliament last year approved its takeover by the State.

The carrier, which is grappling with a negative working capital of Ksh42.15 billion, saw its net loss for 2019 widen to Ksh12.97 billion ($129.7 million) from Ksh7.58 billion($75.8 million) in 2018.

Its management says it has halted route network expansion and embarked on a review of the existing ones with a view to further abandoning and reducing frequencies on what it considers to be non-profitable flights.

The latest are part of raft of the new measures that the troubled national carrier is considering to stay afloat in the wake of the Covid-19 pandemic that has grounded 90 per cent of its operations in the past three months.

Long-term survival

Other measures include diversification into the cargo business, digitisation of its operations and the consolidation of the aviation sector assets as the airline looks for long term survival techniques.

The management blamed the losses on fleet ownership costs, increased costs on new routes and frequencies and increased financing costs related to interest on loan repayments, foreign exchange movements and adoption of the new accounting standard — (IFRS16).

The devaluation of the airline’s assets also reduced the firm’s revenues by Ksh6.73 billion ($67.3 million).

Its total revenues increased by 12 percent to Ksh128.31 billion ($1.28 billion) from Ksh114.18 billion ($1.14 million) helped by cargo load and passengers fares on new routes — Geneva, Rome and Malindi — while operating costs increased by the same margin to Ksh129.17 billion ($1.29 million) from Ksh114.86 billion ($1.14 million).

Chief executive Allan Kilavuka said the future of the aviation industry remains uncertain in the wake of the Covid-19 pandemic that has seen governments put in place measures to control the spread of the virus including suspension of international flights to enforce social distancing regulations.

“We are not going to invest in any new route going forward of course. We are going to look at the routes that we have invested in and see whether we want to continue with that investment because any route has an investment,” Mr Kilavuka told an investor briefing in Nairobi last week.

“In some cases we will stop flying to some destinations, in other cases we will reduce frequencies and in other cases we will suspend operations. There are different things we are looking at so that we can respond to the market in the new context.”

The airline estimates that passenger demand in Kenya alone will drop by about 3.5 million this year, while global traffic is forecast to decline by 4.7 percent, causing the first overall decline in demand since the Global Financial crisis of 2008-2009, according to the International Air Transport Association (IATA).

The IATA also forecasts that the global aviation industry will lose $29 billion worth of passenger revenues this year, of which $40 million will be linked to African airlines.

Three-year recovery

“The times ahead of us are very uncertain but like I said, if you look at the immediate future the year 2020 is obvious not going to be business as usual, the aviation sector will take time to recover,” said Kilavuka.

“There have been very many hypotheses, some are predicting a three-year recovery period, some are predicting a one-year recovery period but the general consensus is that there will be a drop in passenger numbers by at least 50 per cent. My own estimate is slightly more than that. In Kenya in particular we see that the demand for passenger travel we estimate that it is going to drop by about 3.5 million passengers. So it means is that we need to adapt to this new context.”

KQ increased its losses for the year 2018 to Ksh7.5 billion ($75 million) from Ksh6.4 billion ($64 million) in 2017.

Its net loss for the six months’ period to June 30 2019 more than doubled to Ksh8.5 billion ($85 million) from Ksh4 billion ($40 million) in the same period the previous year (2018).

Source: https://www.theeastafrican.co.ke/business/Taxpayers-to-bailout-KQ-as-it-sinks-into-a-further-loss/2560-5569164-1307f7j/index.html

High-end hotels have taken steps towards reopening even as they start marketing takeaway offers from their restaurants to protect their incomes with the hospitality sector seeking to survive restrictions put in place to slow down the spread of coronavirus disease.

Top hotels like Villa Rosa Kempinski, Ole Sereni, Hemingways Watamu, Radisson Blu Arboretum and Trademark Hotel have reopened their restaurants for take away and dine-in options as well as home and office deliveries.

Others have also rearranged their sitting arrangements to take into account social distancing as they seek to comply with Ministry of Health rules. “Our five star luxury dining can taste just as good, served in the comfort of your home or office,” the Villa Rosa Kempinski said on its social media pages and in personalised messages to customers.

“All our meals are prepared observing the highest health, hygiene and safety standards in compliance with Kempinski White Glove Service.”

Ole Sereni Hotel has also added laundry services to its drive-through meals service as it seeks to earn additional income.

Trademark and Ole Sereni have also included accommodation bookings as the players hope that the industry will recover or receive a bailout from the government. This comes against the background of countries like Spain declaring that they are considering reopening for tourism. China, too, is in talks with Germany to allow business executives to travel to the Asian country to restart business and investments.

Sources on Tuesday said that in the event that President Uhuru Kenyatta eases the restrictions on Saturday, the Kenya Airports Authority will resume operations by Monday next week, meaning that airlines like Kenya Airways can start flights, starting with the re-establishment of domestic routes. This will mean that business travel can reopen, which will in turn mean that executives can patronise the high-end hotels as the economy re-opens.

“We have to take a long-term view,” Roberto Simone, the managing director of the Villa Rosa Kempinski, Nairobi, told the Business Daily in an exclusive interview. “Unless we open, we will die of closure.” He said even as it was important for players in the hospitality industry to protect their cash reserves and cash flow, they should remain open to send a signal that the country is ready for business travellers and resumption of tourism.

Besides the high-end hotels, their lower tier counterparts like Pride Inn and restaurant chains such as Java, Artcaffe, KFC and Dominoes, have also resumed operations, sustaining their businesses by delivering food to customers or allowing them to order on take-away basis.

Delivery services such as Glovo and Uber have reported an increase in demand for food delivery services from across the hospitality industry as families opt to dine indoors rather than visit hotels and restaurants for their meals. Hotels were required to close their doors to customers at the end of March by government directives banning large social gatherings and additional Ministry of Health measures to ensure social distancing as the government raced to slow down the spread of the Covid-19 disease. This, coupled with restrictions on international flights into Kenya hit the country’s tourism industry, which brought in Sh163.56 billion last year.

The extended shutdown of the hotels has resulted in the indefinite closure of some establishments, including Fairmont Nairobi and Mara as others grapple with alternative revenue models. Many have also either laid off staff, reduced their pay or sent them on unpaid leave to protect their cash reserves since they are hardly generating new revenues.

The properties still in operation have narrowed down to skeleton staff and cut off most amenities, including spas and gyms and other entertainment and recreation options.

Bed occupancy is almost non-existent, with few of the hotels having received a lifeline when they were operating as government-approved quarantine centres last month.

At the end of April, Health Secretary Mutahi Kagwe allowed the reopening of restaurants between 5am and 4pm as long as the staff are tested for the virus and social distancing measures observed.

The hotel sector in the country had seen increased activity with numerous global hotel brands opening establishments over the past year, leading to increased competition in the sector.

Source: https://www.businessdailyafrica.com/news/High-end-hotels-take-measures-to-reopen/539546-5569820-ojxdfjz/index.html

 

 

As part of efforts to ensure the safety and well-being of its passengers during travel, regional low-cost carrier Jambojet has introduced a raft of measures to ensure its passengers and crew are protected from contracting the novel COVID-19 during travel.

Jambojet acting CEO, Karanja Ndegwa, said the measures taken include thorough sanitisation of aircrafts with industry approved detergent before and after each flight paying extra attention to all touch prone areas. Additionally, the aircraft have been fitted with High-Efficiency Particulate Air (HEPA) filtration system that refreshes the air every 3 minutes.

“We remain committed to ensuring the safety and well-being of our employees and customers from the moment they arrive at the airport to the time they land at their destination. Once we resume operations, we will ensure that we continue to follow the set guidelines by the Ministry of Health, WHO, IATA, and other relevant bodies,” said Ndegwa.
Additionally, temperature checks will be done on arrival at the airport, and hand sanitisers will be provided at all customer touchpoints. All passengers and crew will be required to wear facemask throughout the journey and observe social distancing on all queues and at the lounge. The Cabin Crew will assist passengers with opening and closing of the overhead bins to reduce touch.

“We are encouraging our customers to check-in online to minimise queues at the airport. We have also updated our boarding procedures, where passengers will be boarded by zone starting with those seating at the rear of the cabin,” he said.
Jambojet halted operations on April 17 after President Uhuru’s directive on cessation of movement by road, rail or air in and out of Nairobi, Mombasa, Kilifi and Kwale counties to prevent the spread of COVID-19. Operations will resume once the ban is lifted.

Source: https://www.standardmedia.co.ke/article/2001373757/passengers-to-wear-facemasks-in-jambojet-flights

Kenya Airways will resume passenger flights on June 8, the Transport Ministry has confirmed.

On the other hand, the Kenya Airports Authority is putting in place the necessary operation manual ahead of the opening of the country’s airports for passengers.

In an interview with the Star, Transport Cabinet Secretary James Macharia said the airline is ready to take back to the skies.

This will however be subject to “medical protocol”, Macharia said, which the government is keen to ensure both the national carrier and KAA comply with. 

“We expect KQ to fly from June 8 subject to medical protocols,” he said.

According to industry players, these include clearance by the World Health Organization (WHO) and adherence to set specifics and standards by the International Air Transport Association (IATA).

Among them is spacing at check-ins, waiting bays, sanitising  and neutralising of the middle seats in aircraft.

“We are supporting KQ to get back to the skies,” Macharia said.

This week, staff at JKIA were taken through a two-day pandemic preparedness training, a program of the East African Community conducted by AMREF and funded by Germany.

The Sh708.1 million programme covers eight international airports in the six EAC partner States.

It involves a wide range of staff with close contact to passengers and or their luggage, mong them airport medical service providers, aircraft and airline operators, selected crew members, staff at immigration and customs, cargo and baggage handlers. 

The training aims to build the knowledge of the staff on safety measures, surveillance, prevention and control strategies and relevant regional guidelines.

“These trainings are implemented at a critical point in time, before international travel picks up again,”German Deputy Ambassador Thomas Wimmer said.

The latest developments give hope to the country’s aviation and travel industry, which has one of the most affected since the government’s suspension on intentional flights in March to curb the spread of the coronavirus.

The airline grounded a majority of its 36 aircraft, which includes nine Boeing 787 Dreamliners, 10 Boeing 737 aircraft, and 17 Embraers.

 

“We started feeling the effect in February after we stopped flying to China, then Italy and the rest followed,” Kenya Airways CEO Allan Kilavuka told the Star in a recent interview.

KQ, as it is known by its international code, has been competing for cargo business, which is currently the only business available for most airlines.

This is through its two Boeing 737-300 freighters and the use of passenger planes to transport cargo.

KQ has also been flying specially arranged emergency flights, mainly to evacuating citizens stranded abroad, or those seeking to fly back home.

Such is the direct flight from Nairobi to London set for June 4, where subject to sufficient demand, KQ will operate a specially arranged flight which will depart from Nairobi at 9:20 am for London Heathrow. 

The economy class ticket is going for approximately $1,333(Sh142, 710) and $2,403 (about Sh257, 265) for business class. 

Returning to the skies will be a big relief for the airline which has a network of 53 destinations globally.

Kilavuka yesterday said the airline will start with local flights before moving to regional routes and inter-continental schedules.

“We will start with domestic and regional flights at reduced frequency and then introduce some long haul at reduced frequency and changed based on demand,” he told the Star.

KQ has been losing an estimated Sh9.3 billion in revenue monthly after the suspension of flights.

On Tuesday, it announced a net loss of Sh12.9 billion for the financial year ended December 31, 2019, as operating costs dented its balance sheet.

This is 72 per cent rise compared to the Sh7.5 billion net loss reported for the same period in 2018.

Adoption of IFRS 16 and increase in operating costs associated with a 15 per cent increase in capacity deployed to offer increased connectivity between city pairs and investment in new routes affected the airlines profitability, Chairman Michael Joseph said.

The Nairobi Securities Exchange-listed airline saw a 12.4 per cent increase in operating costs, driven by an increase in capacity deployed and an increase in fleet ownership costs attributed to the return of two Boeing 787 aircraft that had been subleased to Oman Air.

The operating costs eroded gains made in revenues which increased by 12.4 per cent to Sh128.3 billion, up from Sh114.2 billion in 2018.

“The growth was due to improved passenger, cargo, ancillaries, and other revenue streams, mainly due to expansion of the Kenya Airways network,” said Joseph.

Kilavuka has however warned of tough times ahead before the industry fully picks, with passenger and revenue numbers expected to drop by 65 per cent

According to the CEO, the propositions to neutralize the middle seat in aircraft will also increase cost of travel by between 50 and 100 per cent.

Airlines in Europe and parts of Asia have commenced operations, albeit on small-scale, as travelers remain cautious. 

Macharia has affirmed government’s support for KQ, which is under the process of nationalization, saying it remains critical for the flower sector, fresh produce exports and the country’s tourism sector.

“KQ goes beyond the balance sheet and profit and losses. If you only look at these, you will never have an airline,” he said on the telephone, “We shall continue supporting KQ.”

 

Source: https://www.the-star.co.ke/business/kenya/2020-05-29-kenya-airways-jkia-gearing-up-to-resume-operations/

The Kenya Association of Travel Agents (KATA) this week hosted Qatar Airways in an Industry Meeting with KATA members in attendance.

The online meeting that was hosted by KATA Chief Executive Officer Agnes Mucuha had on its panel the KATA Chairman Mr. Mohammed Wanyoike and Qatar Airways Country Manager Fadi Zuraikat.

Mr. Zuraikat, during his presentation explained to KATA members that the airline is currently operating over 150 flights per week to over 33 destinations globally.

“In total, by the end of June, we plan to operate 28 flights to 6 destinations in Africa,” he said. Subject to the government’s opening up international flights, Qatar Airways plans to resume one flight to Doha in June which will increase to two in July then three in October 2020.

Qatar Airways further informed members that tickets already bought will have a validity period of two years and can be swapped for miles to be spent at traveller’s convenience.

Tickets will be refunded in case of a cancelled flight and there is also the option for exchanging the ticket for future travel with 10 percent additional value. The ticket can also have its date and destination changed unlimitedly. All this is however for travel booked up to December 31, 2020.

He assured members of the safety of their clients once international travel resumes, saying that the airline has put up measures of international standards that will ensure a clean and secure space for travel infection free.

Mr Wanyoike noted that it is encouraging that airlines have already made plans to actively resume business once travel restrictions are lifted. He pointed out that with the market opening up in the rest of the world, it will also open up in Africa and businesses can resume generating revenue.

“Life has been hard for the travel trade since we shut down our businesses in March and sent our staff home on unpaid leave. This conversation has given our members hope,” he said.

United Federation of Travel Agents Associations (UFTAA), the airlines and International Civil Aviation Organisation (ICAO), he further said, are developing protocols on the minimum standards that need to be enforced to ensure safety of travellers globally.

Once travel resumes, travellers are encouraged to book their travel with a trusted and certified KATA agent to ensure that they are fully appraised of all necessities and requirements for safe travel.