Never in the history of African aviation had an airline been privatised until when the Kenya Airways was inadvertently made a specimen. This is how Kenya, a regional powerhouse, became a country regarded highly as a strategic nation but which does not fully own a national airline.

KQ was wholly owned by the State until April 1996 when the government made a conscious choice to float shares to the public having noted that the real problem behind its dismal performance was the State ownership structure.

As a result, for five consecutive years, the airline experienced a gradual deterioration in financial and operating performance while neither paying taxes nor dividends as a national airline. It had accumulated losses to the tune of Sh3 billion.

However, profitability of the airline improved after privatisation, with gross profit being recorded for the first five years. These ever-rising profits must have clouded the whole nation for far too long under the ‘Pride of Africa’ tag as regional policies were being introduced at a time when competitors were quietly licking wounds as they preyed and bayed for KQ’s blood.

Fortunately for competitors, in 2002, half a decade after privatisation of Kenya Airways, the open skies for Africa treaty (Yamoussoukro Decision) was signed into law, granting airlines a set of commercial aviation rights that allowed them to enter and land in other nations’ airspaces. The underlying implication from this new development was that the African aviation sector had been redesigned to give advantage to state owned African airlines while subtly maligning the privately owned like Kenya Airways.

This window of opportunity was enough for Ethiopia and Rwandan governments to propel their then wannabe airlines. Since then Ethiopian Airlines (ET), which was half the size of KQ in 2010, has outpaced KQ three-fold.

Rather than privatising KQ, stakeholders ought to have ensured that the airline was professionally run and managed. The advent of the open skies treaty would have made it a monopoly in the African aviation sector.

It took more than a decade for African states to adapt the open skies treaty but when it rolled out, it became extremely difficult for private airlines on the continent to succeed due to the now fashionable practice by governments to shield state owned airlines from both foreign and private competition through restrictive regulations and high taxes.

The biggest challenge of 21st century African diplomacy is that it takes place among multiple sites of authority, power, and influence that maligns the consistently reliable expert opinion of the private sector.

At the moment, the Kenya Airports Authority (KAA) charges KQ annual fees of up to Sh2.2 billion comprising of landing fees of over Sh1.6 billion, building and rent utilities of about Sh400 million and concession fees of Sh200 million, heavy cost of fuel distribution, maintenance and cost of services incurred in other airports notwithstanding.

KQ also pays KAA the Air Passenger Service Charge (APSC), which is dependent on the number of passengers departing from Kenya with the airline, to the tune of Sh4.3 billion yearly accounting for approximately 50 percent of JKIA’s total revenue from APSC. These charges alone amount to Sh6.5 billion.

The Kenyan parliament is right to consider exemptions of taxes borne by KQ and other Kenyan carriers that other operators into the country are not subjected to like corporate taxes, excise tax and import taxes.

Had the airline been exempted from paying these fees in 2018 alone, it would have converted over Sh6.5 billion into profit. These are clear signs that the airline will be more solid and profitable as a national enterprise than it is under the current ownership structure.

Though the airline has been steadily making headway towards profit recovery amidst unavoidable challenges like competition with state owned airlines that possess a big market in Africa, this partly demonstrates how the odds of thriving in the African continent are against privately owned African airlines.

Critical assessment and comparison of financial performance and position of Kenya Airways before and after privatisation gives a clear indication that the airline should not have been privatised.

While as a national airline, KQ had accumulated losses to the tune of Sh3 billion over a five-year period and was heavily indebted with its long-term loans rising to Sh3.9 billion. As a private airline however, it record a loss of Sh26 billion in 2016 which has been cut down to Sh7.5 billion.

Every decision to privatise a state owned enterprise makes an assumption that privatisation will generate sufficient funds and that the privatised enterprise will continue to operate efficiently after privatisation.

On the flip side, public enterprises are a deliberate choice by the public to allow the government to provide certain goods and services that the private sector cannot avail affordably and efficiently.

The writer is MP for Kajiado East and Committee member on Transport, Public Works and Housing.

Source:https://www.businessdailyafrica.com/analysis/ideas/4259414-5258094-lxa8dc/index.html

Just a month after Jambojet was awarded the coveted IATA Operational Safety Audit Certification, the regional low-cost carrier has been ranked top airline in Africa with the youngest fleet in a report by global aviation intelligence provider, ch-aviation.

The report shows that Jambojet’s average aircraft age is 4.3 years compared to the continent’s average of 16 years, the oldest globally. It is followed by Royal Air Maroc Express of Morocco and Air Austral in Reunion at 6.03 and 6.05 years respectively.

Ethiopian Airlines and RwandAir come in fourth and fifth respectively at 6.11 and 6.17 years respectively.

“This recognition is yet another validation of our commitment to keeping customer safety at the core of our business. We remain committed to matching our words with action which is why we made a business decision to only acquire brand new aircrafts,” said Allan Kilavuka, CEO, Jambojet.

Globally, the average age of aircrafts flying is 12 years. The youngest airline fleets is in Asia which averages 8.5 years.

“This year, we also looked at the youngest fleets for larger airlines separately, because fleet renewal for these airlines is more complex and requires more capital than for small start-ups,” said Thomas Jaeger, CEO, ch-aviation.

“Our data clearly shows that Asian airlines continue to see tremendous growth, especially the low-cost carriers. This coupled with good access to capital for new aircraft leads to the youngest fleets being in this part of the world,” he said.

The report analysed more than 30,000 active commercial passenger and cargo aircrafts.

Last month, Jambojet has added another feather to its cap after it was awarded the IATA  IOSA registration. The IOSA programme is an internationally recognised and accepted evaluation system designed to assess the safety, operational management and control systems of an airline.

The regional low cost airline, is the only operator after Kenya Airways to get IOSA registration in Kenya, reinforcing its commitment to maintain global safety standards in its operations.

“Safety is a principal requisite in our industry. Our customers need the assurance that they can travel comfortably, affordably and securely to any of our destinations. This registration is a testament to the effort we have put into ensuring the best operational and efficiency standards as a growing regional airline,” said  Kilavuka at the time

Jambojet has successfully completed the meticulous audit which involves approximately 900 standards and recommended practise.

The audit covers an exhaustive assessment of eight functional and operational areas which include organisation and management systems, flight operations, operational control, flight dispatch, aircraft engineering and maintenance, cabin operations, ground handling operations, and security management.

“The IOSA audit involves a great deal of hard work and requires a significant commitment of people, time and resources. I would like to congratulate Jambojet team for this achievement. As we expand our operations into the region, we are keen to offer value beyond convenience and affordability. Our core promise to our customers and partners is reliability and safety and undergoing the IOSA audit adds to this commitment, across the region,” said Kilavuka.

IOSA uses internationally recognised audit principles and is designed to conduct audits in a standardized and consistent manner. Airlines are re-evaluated every two years to ensure consistent innovation and observance to operational management, efficiency, air-worthiness and safety in the aviation industry.

This achievement comes after the airline was recently awarded the 2018 Bombardier Reliability Award for outstanding performance in dispatch reliability.

Source: https://businesstoday.co.ke/jambojet-allan-kilavuka-youngest-fleet-iata-iosa/

Effective September 2, 2019, the carrier started direct flights from its Wilson Airport hub, Nairobi to the upgraded Kabunde Airstrip.

Speaking to the media, Silverstone Air Sales and Marketing Manager, Mr Patrick Oketch said that buoyed by their general acceptance and the desire to connect the whole country, the airline has completed all the paperwork including carrying out test flights to Kabunde Airstrip.

”We are delighted to include Homa Bay town in our growing list of destinations that we serve. This new service which will be a daily one is expected to help the people in and around the great county access affordable and reliable air service,” Oketch said.

The Kabunde airstrip was modernised in 2015 by the Kenya Airports Authority (KAA) and received its first commercial flight in January 2016.

Sh200 million was used to upgrade the facility into a modern usable airfield with Glanack Investments Company hired to undertake the upgrade works that included the expansion of the runway to 1.2 kilomtres length and a new apron constructed.

Fencing around the facility was also reinforced and an all-weather road between Homa Bay and Rongo which is used to access the facility fully tarmacked.

Oketch said that the journey from Wilson Airport to Kabunde airstrip is estimated to take 35 minutes flight.

He said that the introductory fare is Sh6,500 for a one-way trip.

He said that on the particular route, Silverstone Air shall be deploying a Dash 8-100 type of aircraft that has a capacity of 37 passengers.

”If demand dictates, we shall also introduce late afternoon flights to Homa Bay,” the manager said.

Already, Silverstone operates daily flights from Wilson to the serene Kenyan Coast into Mombasa, Diani, Malindi and Lamu.

It also flies to the Maasai Mara, Eldoret, Wajir and Lodwar. Its recent services include charter operations for cargo in and within the region.

Source: https://www.standardmedia.co.ke/article/2001340213/silverstone-launches-direct-flights-to-homa-bay-town

Kenya Airports Authority (KAA) chief executive Jonny Anderson has announced that he will quit from the helm of the parastatal on September 30, before the expiry of his term in November.

The shock resignation brings to an end his turbulent reign at the authority which began in July 2016.

Mr Anderson told KAA workers in a memo seen by the Business Daily on Friday that he would quit his position in the next one month, citing “personal reasons.”

‘I would like to take this opportunity to inform you that I have taken the decision not to pursue the decision of renewal my contract with KAA. This is after deep reflection and consolation with my family.

“I will be proceeding on leave on September 30, with my tenure ending on November 21, 2019. I will take fond memories of the authority, colleagues, and the incredible journey with me in my heart,” Mr Anderson said.

KAA chairman Isaack Awuondo confirmed the exit in a separate memo to staff. He credited Anderson for strengthening airports operations for the period he has been at the helm of the organisation.

“Over the three years that Jonny has been at the helm of the authority he has strengthened airport operations and overseen a period of growth in passenger numbers and the number of airlines flying to Kenya,” said Mr Awuondo.

Anderson joined the authority in July 2016 from Avinor AS in Norway where he was the national airports director. He replaced acting managing director Yatich Kangugo.

His appointment brought to an end a protracted recruitment process that was characterised by claims of political interference.

Mr Andersen was picked after trouncing five other candidates, including Mr Kangugo who emerged a distant fifth in the interviews.

Interview score sheets show that Mr Andersen scored 88 per cent while Mr Kangugo, who served as airport manager at Eldoret International Airport, scored 63 points.

He has had a rough path for the period he has been with the authority.

For instance, last July, MPS gave him the last chance to provide documents justifying the cancellation of the Sh64.5 billion Greenfield terminal project at Jomo Kenyatta International Airport.

National Assembly’s Public Investments Committee (PIC) warned the KAA management lead by Mr Anderson that it would declare them hostile witnesses if all documents surrounding the procurement of a Chinese contractor were not tabled in Parliament on time.

PIC chairman Abdulswamad Nassir said Parliament would have no other option than to direct investigative agencies, including the Directorate of Criminal Investigations, to seize the documents from KAA.

Safaricom has partnered with Travelport, a leading travel reservation provider, to enable travel consultants and agents to directly bill and invoice through M-pesa.

Marking a global first, the integration will empower more than 800 travel agencies to simplify travel payments, book clients’ trips, hotel accommodation, hire transport and conveniently pay by M-PESA.

“Today’s development brings the speed and convenience of M-PESA to Travelport, the more than 800 travel agents they serve, and their customers. We are pleased that the travel industry is set to benefit from increased efficiency and ease of doing business, reducing the time and effort it takes to make bookings and reservations,” said Michael Joseph, chief executive officer, Safaricom.

By fully automating booking and ticketing the solution eradicates the previous need for agents to manually reconcile customer reservations on the Travelport platform. It further enables more agents to easily accept M-PESA as a cashless payment choice which in turn means they can reach more potential customers.

“Our commerce platform aims to offer the ultimate travel experience for today’s connected digital age. Having M-PESA as a payment choice enables our travel agents to effectively tailor their products to meet the demands of the modern traveller,” said Nita Nagi, Regional Manager, Travelport.

Some of the travel agencies in Kenya that have integrated their systems with Travelport include Carlson Wagonlit Travel Kenya, FCm Travel Solutions Kenya, Incentive Travel, Acharya Travel and Travel N’ Style.

Safaricom’s deal with Travelport marks the second such in the last three months. In May, Safaricom partnered with BuuPass to enable online booking and payment for bus ticketing through M-PESA.

The growing uptake of the service in the travel sector comes amidst preference for mobile payments.

Data from the Central Bank of Kenya shows that mobile payments were the most preferred form of cashless payments in the country, accounting for more than 90 percent of such payments in April 2019.

Uganda national carrier has been relaunched amid pomp and colour after being liquidated 40 years ago as a result of mismanagement and public debt.

Ugandans celebrated the move as the airliner made its maiden flight to Nairobi this Wednesday August 28, 2019.

After Nairobi, other destinations that the airline will fly to include Mogadishu, Juba and Dar es Salaam then to then to Mombasa, Kilimanjaro and Bujumbura. Eventually, the airline intends to launch direct long-haul routes to China and other Asian countries whose tourists Uganda is keen to attract.

The revival plan faced criticism from various quarters in in the Ugandan Central Bank as it was to cost Ushs 575 billion (Kshs 16 billion).

The country now has two new Bombardier CRJ 900 jets and will receive two others in September, while the addition of two Airbus A330-800 planes in 2020 will allow it to launch the long-haul flights.

The price for air ticket from Uganda, Entebbe, to Kenya, Nairobi, is approximately Kshs 28, 684 ($278) for a return trip and Kshs 14, 342 for a one-way ticket.

The role of travel agents is constantly being questioned especially now when information is accessible online.

However, their part in the travel industry cannot be underscored particularly by the traveller who wants peace of mind as they travel.

A lot of information comes up every day on why a traveller should not rely on a travel agent and instead go online and book a holiday and hotels for themselves.

This is terrible advice, says the Kenya Association of Travel Agents (KATA) Chief Executive Officer Mr. Nicanor Sabula.

Vacationers, he says are not guaranteed of cheap and affordable vacations when the book their flights and hotels directly.

 “There is so much information online and trying to sieve through it all to come out with an itinerary is chaotic. I would advise a traveller to make their search and share the information with their agent in order to get personalised services. The travel agent will also be in a position identify actual and false packages and protect the client from cons” Mr Sabula added.

He urged travellers to use KATA accredited agents as they are bound by a code of ethics that assures one of integrity and professionalism in the business.

“When booking directly, one lacks the security that comes with having an accredited travel agent take care of the travel plans. It is therefore easy for one to fall into the wrong hands and end up with no holiday and no money,” he pointed out.

Like every other industry, there are bad seeds that reap where they have not sown and that is why a travel agent comes in and buffers the traveller.

Ms Rosemary Wanjiku, a frequent traveller to Dubai for business says that she must use a travel agent to prepare her itinerary before each travel.

“The first time I booked directly I was so disappointed. I lost my luggage and the hotel I booked was nothing like I saw online. I tried following up and it only cost me more money. Now I leave everything with my agent and I have realised that I save more time and money and enjoy the convenience,” she said.

She further noted that travel agents have access to information on the best service rates from airlines, car hires and hotels and they can steer one towards deals and promotions therefore saving one time.

A travel agent is with the traveller from the beginning of the vacation to the end, ensuring that their client receives a personalised experience and value for their money.

Passport applicants are now required to book an appointment through the eCitizen portal for passport collection.

This was announced by the Department of Immigration on August 29, 2019 through a notice informing the public that they can only collect the passports from where their biometrics were taken, after making an appointment.

This is in a bid to reduce congestion and improve service delivery at the passport centers.

“With the booking system, you will not have to queue for hours to collect your passport,” read the statement.

Applicants seeking to collect already processed passports are required to carry an appointment slip, original Identification Card and the expired or old passport for those making replacements.

Earlier in the week, the immigration department introduced the appointment system for e-Passports.

The notice to the public stated that only those with appointments will be allowed to make passport applications and take biometrics at the passport processing centers.

“You will henceforth be required to book an appointment in the eCitizen portal. Specify the date, time and station of your convenience,” the notice read.

Those who have already made applications for passports will also be required to revisit the portal and book appointments indicating time, date and station.

However, sick people with urgent appointments to travel out of the country for medical reasons will be exempted from making an appointment.

Other people exempted from making appointments include students on scholarships that require immediate travel, public servants on urgent assignments and business executives on urgent official business.

People seeking exemption will have to produce evidence to prove their urgency.

The 35th East African Community (EAC) Council of Ministers issued a directive requiring all member states to begin the issuance of the new East Africa e-Passport by January 31, 2018.

This saw massive congestion at passport centers as Kenyans strived to beat the August 31, 2019. The deadline was nevertheless extended to March 1, 2020 allowing Kenyans to use their old passports until then.

Kenya Airways (KQ) this week released it’s half-year results posting a loss of Ksh 8.56 billion.

The loss in the period ended June 30, 2019, was attributed to the investment in their new routes, the return of two wide-body aircrafts and other operational costs.

The national carrier however recorded a 12.2 percent increase in revenue due to the new routes. Revenue for the first half increased to Kshs. 58.55 billion from Kshs. 52.19 billion compared to the same period last year.

The results were relayed during an investor briefing on Tuesday, August 27, where the KQ board and management expressed optimism that the strategic investment initiatives the airline has been implementing in the turnaround program for the past two years are progressively paying off.

KQ board Chairman Michael Joseph noted, “We continue to steer the business away from the previous headwinds, steadily digging it out of the historic loss of Ksh. 25 billion posted in 2014. As at the end of 2018, the losses had narrowed by over 250%. This is a testament of our commitment to turnaround Kenya Airways”.

KQ CEO and Managing Director Mr Sebastian Mikosz pointed out that the Nairobi- New York route that was launched in October 2018 has exceeded expectations and continues to receive positive passenger uptake.

He added that KQ’s strategic network expansion is still going on with the airline having recently secured codes to fly to Canada and Beijing.

“Despite the tough market environment, we are making positive strides which involve resource optimization and the robust growth approach we have taken in this very competitive marketplace. Some of these investments may deny us, our shareholders and stakeholders the coveted bottom-line numbers, but we have our eyes on the bigger picture,” Chairman, Michael Joseph added.