The introduction of Entebbe-Mombasa direct flight by Uganda Airlines is set to boost trade and tourism between Kenya and Uganda as the route will cut the previous flight journey time by more than a half.

The 110-minutes flight trip would play a vital role to thousands of Uganda traders who depend on the Port of Mombasa to do business considering more than 85 per cent of Uganda imported cargo pass through the port.

The route will add value to travellers who used to spend more than three to four hours to fly from Entebbe connecting in Nairobi to Mombasa.

Mombasa is an important city for Uganda and the East African region as the port is a logistical lifeline for the greater hinterland as a much-sought -after tourism spot and the new air link would be a perfect boost for business travellers, traders and holiday makers and it will be a great opportunity for coastal tourism to link up with Uganda, the pearl of Africa.

The Ugandan Bombardier CRJ900 aircraft introduced on the direct flight to Mombasa from Entebbe landed in Mombasa on Monday, making it the second Kenyan city where the airline operates following an earlier launch of operations to Nairobi on August 27 this year.

Uganda Airlines manager ground operations Harvey Kalama said the flights will ease doing business considering Ugandans play a big role in port business and in Mombasa tea trade auction.

“We expect our clients to enjoy promotional flights in the next three months during holiday season but at the same time the route is vital to traders who operate in Kenya and Uganda,” said Mr Kalama.

The airline will charge $200 (Sh20,000) to travel between the two destinations one way and they expect to increase the flights per week in the next three months after the promotional period.

“This move to commence a direct flight between the two towns comes due to mutual business relationship between Kenya and Uganda. Uganda Airlines is resuming its operation because of growing tourist trade and business between two countries and there is a need to cater for Mombasa market demand of trade and regional tourism,” said Uganda Consul in Mombasa Katureebe Tayebwa.

Mr Tayebwa said they are in talks with the Port Management Association of Eastern and Southern Africa (PMAESA) to entice its members to use the airline considering that Uganda is a major stakeholder at the port.

Uganda remains a key trade partner for Kenya as its exports and imports passing through Mombasa are increasing annually.

The latest figures for 2018 from the Kenya Ports Authority 2017 annual performance report show that Uganda remained the leading Mombasa port user, with its import cargo rising steadily from 6.5 million tonnes in 2017 to 7.4 million tonnes of goods last year.

Tea is one of Uganda’s biggest exports, mostly shipped to Pakistan and the United Kingdom and Uganda exports about 60,000 tonnes indirectly through the Mombasa tea auction as Kenyan branded tea through 27 exporting companies.

Mombasa will be the seventh destination to fly since the airline resume its operations about two months ago and the airline will be operating three times weekly; Mondays, Fridays and Sundays. The carrier currently operates scheduled flights to Nairobi, Dar es Salaam, Juba, Mogadishu, Bujumbura and now Mombasa, Kilimanjaro and Zanzibar.

 

Our Source: https://www.businessdailyafrica.com/corporate/shipping/Uganda-Airlines-Mombasa-flights/4003122-5347628-2a9yrn/index.html

Travel agents in Kenya have until December 15 to find and place an acceptable financial security with IATA following the announcement that the Default Insurance Program (DIP) will not be renewed for 2020. The shocking announcement follows years of uncertainty over a financial security product that has proved to be popular among the Kenyan travel agency community. 

In a communication to travel agencies, IATA said that they were not renewing the DIP cover for 2020 after the current provider Saham Assurance failed to meet new requirements they had introduced. The Kenya Association of Travel Agents (KATA) has been leading efforts to try and salvage DIP but so far, those interventions have not succeeded. “We are doing all we can including talking to both IATA and Saham to see if we can find a solution. DIP is such an important product for this market, and it has served us well for the last 20 years without fail”, KATA CEO told the KATA Weekly Travel News.

It is feared that many travel agencies especially the small and medium sized ones may fail to meet the deadline set by IATA given that it takes for instance a minimum of three months to obtain a security backed bank guarantee in Kenya. To compound the problem, travel agents have raised concerns at the delays experienced while processing the Global Default Insurance (GDI), a product that IATA has been fronting as an alternative to DIP. GDI is offered by Euler Hermes, an insurance brokerage firm based in the UK with no known offices in Kenya and only services travel agents through an online portal.

Recently, KATA hosted an emergency meeting for its members to assess the impact of the withdrawal of DIP in the market and explore alternatives that agents could pursue within the timeframe provided by IATA. Through the experience sharing at the meeting, it is evident that many are still struggling with the only two options available i.e. bank guarantee and GDI. Some agents have already had their applications for insurance cover declined without being provided with a reason. Banks are adamant that they will only provide guarantees backed by cash deposits or charged property.

KATA CEO Mr. Nicanor Sabula assured members at the meeting that the Association is in discussions with selected banks which are conversant with the travel industry to fast track the process for agents interested in getting bank guarantees. He faulted IATA for being inconsiderate to local markets when they make decisions that end up disenfranchising the market. “IATA is well within its rights to come up with new requirements that help secure the business. However, they are doing it the wrong way. It does not hurt anyone if sufficient time is provided to stakeholders to transition in an orderly manner.”

In the meantime, agents will be spending sleepless nights in the coming weeks as they work towards finding a financial security before the December 15 deadline.

Thomas Cook Airlines Scandinavia is to be rebranded as Sunclass Airlines after the collapsed tour operator Thomas Cook Group’s Northern Europe division was acquired by a trio of investors.

The investors include Strawberry Group, the fund controlled by businessman Petter Stordalen, as well as Altor Funds and TDR Capital.

Strawberry Group and Altor will each hold 40% with TDR taking the remaining 20%.

This investment consortium will provide a “strong and long-term” Nordic majority ownership of the leisure company and its 2,300 personnel, says Strawberry Group.

Thomas Cook Airlines Scandinavia has continued operating despite the liquidation of its parent company in September.

The collapsed leisure firm’s Northern Europe operation is also known as Ving Group, and includes tour operator activities in Norway, Sweden, Denmark and Finland – among them firms such as Spies and Tjareborg.

Ving Group says its core business is chartered holiday travel with Thomas Cook Airlines Scandinavia accounting for 85% of its volume.

Group chief executive Magnus Wikner says the investors’ “long experience” in the industry combined with financial strength will give the company “long-term stability” and the opportunity to develop.

Stordalen says the company has a portfolio of “strong Nordic brands” and amounts to a “crown jewel” among the region’s tour operators.

“It’s a fantastic business that has ended up in a very unfortunate situation,” says Altor partner Harald Mix.

He says that, through a restructuring scheme, the new owners will secure SKr6 billion ($620 million) in liquidity and guarantees.

The various operations are being moved to a new group, with some of the component firms filing for a technical bankruptcy to enable them to be taken over by the newly-established group being set up by the consortium.

Thomas Cook Airlines Scandinavia will be renamed Sunclass Airlines. The carrier currently operates around 14 aircraft, a mix of Airbus A330s and A321s.

Ving Group stresses that bookings and trip organized through its tour operators will “continue as usual”.

Source: https://www.flightglobal.com/news/articles/thomas-cooks-nordic-airline-renamed-after-investors-461907/

Lufthansa is cancelling over 1,000 flights scheduled over the next two days due strike by the German cabin crew union UFO, which began at midnight on Wednesday and will last until midnight on Friday.

Somewhere around 180,000 passengers on Lufthansa flights are expected to be impacted by the cancellations.

Lufthansa said it was forced to ground 700 flights on Thursday and some 600 on Friday, with a large proportion of planes halted in the Germany’s busiest transport hubs at Frankfurt and Munich.

Flights by Lufthansa’s other airlines including Eurowings, Swiss, Austrian Airlines, and Brussels Airlines are not affected, the airline said.

Lufthansa provided a new, updated schedule on its website Wednesday. After experiencing “technical difficulties” due to high demand, the website is working again as of Thursday morning.

Lufthansa is offering all passengers with a booked flight through Frankfurt or Munich on Thursday and Friday a fee waiver for rebooking a new flight within the next 10 days. Lufthansa is also offering passengers who have flights cancelled outside of Frankfurt and Munich the ability to rebook free of charge on another flight.

Passengers on domestic flights can exchange tickets for a Deutsche Bahn (German Railways) train ticket free of charge.

The UFO union is striking because of a dispute over pay and pensions, and the union’s legal status. Lufthansa has strongly condemned the strike “in the strongest possible terms.”

Source: https://www.travelmarketreport.com/articles/Lufthansa-Strike-Update-Around-1300-Flights-Cancelled

 

 

The aviation sector regulator Tuesday held a closed-door meeting with Wilson Airport-based air operators over the recent spate of mishaps.

The meeting, which was also attended by Kenya Airports Authority (KAA) acting managing director Alex Gitari and the Kenya Association of Air Operators secretary Eutychus Waithaka took place at Wilson Airport.

The Kenya Civil Aviation Authority (KCAA) director-general Gilbert Kibe promised to provide more details about the event at a later date.

“It was just a consultative meeting with the air operators. I may not be able to discuss with you much about this meeting now,” he said.

Air operators that attended the meeting include Silverstone, Jetways, Skyward Express and Safarilink. Other operators invited were Blue Bird Aviation, Air Kenya and Dac Aviation East Africa.

At least three mishaps involving Wilson Airport-based light aircraft have been recorded in a month. The latest incident last Tuesday involved Safari Link carrying 10 passengers that veered off the runway after a tyre burst.

Last Monday, Silverstone dropped a tyre while taking off from Lodwar.

Source: https://www.businessdailyafrica.com/news/KCAA-in-closed-door-meeting-with-airlines/539546-5338716-75xa61z/index.html

 

Embattled local carrier Silverstone Air has suspended operations on three of its routes including Homa Bay, which was launched just two months ago, in a move that slows down its aggressive expansion plans.

The firm confirmed to the Business Daily that the airline, which has been operating in Kenya since 2017, has not been flying to Homa Bay and has also suspended flights to Wajir and Lodwar because they were not performing well.

“The temporary suspension of scheduled flights on these routes is purely a business decision.

“However, the chartered services on these routes are still active. Maasai Mara is a seasonal route, thus scheduled flights occur during peak seasons,” Silverstone said in response to queries.

A source said the Homa Bay route had not been operational since November 2.

 “Nearly all the routes that were opened by the airline in the last few months have been suspended,” said the source who requested for anonymity due to the sensitivity of the matter.

The airline launched Lodwar flights in January 2018 and the Nairobi-Maasai Mara in July with daily return flights.

The low-cost airline started plying the Wajir route in June and Homa Bay in September as it targeted traders and tourists.

At the time, Silverstone said the Homa Bay route was launched as a result of increased demand from travellers to western Kenya and was expected to boost trade.

The Nairobi-Maasai Mara route was started in July with daily return flights, in a move expected to increase options for customers on the route that is already served by the East African Safari Air Express (formerly FlySax) and Safarilink, among other carriers.

Silverstone Air’s aircraft have been operating from Wilson Airport in Nairobi.

Silverstone is reducing its frequencies at a time the Kenya Civil Aviation Authority has opened an audit to determine the safety and compliance of the airline following a mid-air scare last Monday when one of its planes dropped a tyre while taking off in Lodwar.

Early this month, another one of Silverstone’s aircraft veered off the runway at Wilson Airport.

Source: https://www.businessdailyafrica.com/corporate/companies/Silverstone-halts-flights-on-three-routes/4003102-5338472-10pdxkh/index.html

Kenya’s new Sh350 million world-class cruise ship terminal will be commissioned next month during the tourist arrivals peak season when luxury ships are expected to dock at Mombasa port.

The terminal is expected to create 300 jobs directly, boosting local industries such as the transport sector, hotels, food providers and curio sellers.

In an interview last week, Tourism and Wildlife Secretary Najib Balala, said the completion of the terminal —which is being constructed using a Sh250 million funding from the Kenya Ports Authority (KPA) and another Sh100 million from Trade Mark East Africa (TMEA) — will give a much-needed lift to the sector’s fortunes.

Industry players are now gearing up for the cruise ship peak season which is set to bring good tidings to the country as the construction of the cruise terminal at the port currently stands at 95 percent complete.

On Sunday, the Port of Mombasa received MS Albatros, the first cruise vessel for the season carrying 446 passengers and 346 crew members. It was sailing from Zanzibar.

While in Mombasa, the tourists toured the city, Maasai Mara, Tsavo National Park and Shimba hills.

The new terminal includes duty -free shops, restaurants, conference facilities and offices for key stakeholders in the industry.

The practical handover expected to take place in the next two weeks. The completion comes in time for the cruise tourism during the festive December period.

“We are pleased to have this call from Ms Albatros; it is the first passenger cruise ship of 2019 docking at the port of Mombasa’s new world class cruise ship terminal. All tourism stakeholders should collaborate on revamping the sector for more luxury ships to call at our port,” said Inchcape Shipping Services, Operations Manager, Mr Bwanaheri Omar Lali.

According to the expert, the modern facility would, position Kenya as a passenger destination through the sea tourism and boost the sector.

The port of Mombasa is one of the busiest ports along the East African coastline providing direct connectivity to over 80 ports worldwide.

“This makes economic logic to have the terminal given that it is a critical node in increasing tourism in the region. The new terminal has modern high-roofed structures whose primary source of energy is solar. Meeting rooms and eateries increase the utility of the terminal. A bio digester that will recycle water for re-use,” a statement from the port stated.

The design of the facility has factored facilities for differently abled people to include special lifts, escalators, conveyor belts, scanners, air conditioning system and washrooms.

KPA Managing Director Daniel Manduku said completion of the terminal will boost tourism in the country.

“The KPA has prioritised cruise ships calling at the port of Mombasa due to the high impact created in the coast region by the arrival of such ships through the facility. The KPA has committed its resources to modernise cruise terminal to meet the international standards,” Mr Manduku said.

On her part, TMEA-Kenya Country Programme Manager Elizabeth Mwangi reiterated the institution’s commitment to support key economic sectors in Kenya.

“Tourism is Kenya’s second-largest source of foreign exchange revenue, holding great potential to create jobs and reduce poverty. In this regard, TMEA-Kenya has marked tourism as a key intervention area. Specifically, in Mombasa, TMEA will roll out an export capability programme on tourism to increase revenues and amplify impact on local economy,” she said.

Mr Manduku said the KPA, Kenya Tourism Board and Ministry of Tourism will undertake extensive marketing abroad to raise the terminal’s appeal as an entry point for tourists to the region and Kenya.

The works on cruise terminal, which began in December 2016, was expected to be completed in August 2017, but was pushed to 2018 then later this year due to “unavoidable circumstances” with Mr Balala blaming the contractor for the delays.

In February, the sector lost estimated 2,000 tourists in cruise ships destined for Mombasa port after they were diverted following the Dusit Hotel terror attacks.

Source: https://www.businessdailyafrica.com/corporate/shipping/Cruise-ship-terminal-to-be-launched-next-month/4003122-5338910-7fn8ky/index.html

 

Kenya Airways (KQ) is celebrating one year since making its maiden flight from Jomo Kenyatta International Airport (JKIA), Nairobi to John F Kennedy International Airport (JFK), New York on 29^th October 2018.

The Kenyan national carrier marked a milestone with the introduction of direct flights to New York City exactly a year ago, a move that was welcomed by many.

Statistics indicate that the flight has made about 594 hauls and flew at least 105, 000 passengers.

Kenya Airways CEO Mr. Sebastian Mikosz said that they have been operating daily during the peak season and five days a week during the off-peak season. The USA is one of the many top tourists’ source market.

The Kenya Association of Travel Agents (KATA) lauded KQ for the milestone and indicating that their clients have had great experiences on the flights.

The Scott Travel Group Managing Director Ms. Tracy Scott congratulated the airline adding that her clients are happy with the flights.

“It is great for Kenya and I can see it having a progressive positive impact on our ties and trading with the US, and on Kenya’s continued standing as a global player.  As a Brit, who feels sad about looming Brexit, I think it’s great that Kenya is forging closer ties with the US and other countries, and that Kenya Airways is pushing to expand its network in this way.” Ms. Scott said.

Mr. Patrick Kamanga, MD of Deans Travel Centre also lauded the airline. He however urged KQ to consider partnerships with other airlines in the US to allow an easier commute for travellers.

“This is the best thing that KQ ever did but unfortunately without plan, we still are unable to sell to other points in the USA. Not all Kenyans are traveling to JFK. KQ are yet to set up proper agreements with Delta or other airlines forcing us to issue two separate tickets when one wants to fly to a point outside JFK. Rate becomes too high!” he stated.

To mark this milestone, Mr. Mikosz said that they are offering a 30% discount on all their destinations.