Tourism board eyes regional markets for growth

The Kenya Tourism Board (KTB) is targeting to increase its marketing activities in order to boost arrivals from the region.

Through the use of local influencers, KTB expects regional countries to contribute a significant portion of 5.5 million arrivals and $6.3 billion in tourism earnings by 2028 according to KTB Chief Executive Officer June Chepkemei.

Chepkemei says strategic deployment of marketing assets such as influencer marketing and media outreach is critical in unlocking new markets within the East African Community (EAC).

“With a shared history and cultures, the EAC region is uniquely positioned to offer diverse, multi-country itineraries that capture the imagination of travelers. By collaborating with influencers and media from key markets, we can shine a spotlight on the breadth of experiences available across the region and inspire new interest in visiting,” said Chepkemei.

The EAC region has set a goal to attract at least 14 million international tourists annually by 2025, from 7.2 million in 2019.

The strategic marketing campaign unveiled by the board has brought together renowned social media influencers and key media outlets from EAC member countries with an aim to elevate destination visibility, ignite travel interests, and unearth new growth prospects.

The influencers are expected to market key attractions across various tourism hotspots spanning from Nairobi, Mt. Kenya, the Maasai Mara, Amboseli, Lake Naivasha, Lake Nakuru as well as the Coast.

“We have tailored exclusive itineraries for the influencers and media contingent to showcase the diversity of experiences Kenya offers. With their large social media following and ability to create trending content, we are confident that collaborating with these key personalities will catalyse interest in visiting Kenya,” added Chepkemei.

Uganda, Tanzania, Somalia, and Rwanda emerged among Kenya’s top ten tourism source markets last year with potential for growth.

Source: KBC

Kenya Airways-KATA deal to spur economic growth – Kenya News Agency

The Kenya Association of Travel Agents has inked a Memorandum of Understanding (MOU) with Kenya Airways to foster collaboration in their operations.

This strategic collaboration, initiated by travel agents, aims to bolster the national carrier’s market presence and strengthen its competitive position within the industry.

This partnership is expected to bring about significant benefits for both parties, leveraging the expertise and networks of travel agents to drive the growth and innovation of Kenya Airways.

Speaking at the 44th Annual Travel Convention and General Meeting under the theme ‘Make the Connection’ held at Sarova Whitesands, Mombasa, the Chief Executive Officer (CEO) of KATA, Nicanor Sabula, highlighted the substantial impact of recent government policy changes, technological advancements, and the overall growth of the industry.

He noted that these developments are shaping the future of travel, requiring stakeholders to adapt and innovate in response to the evolving landscape.

The meeting brought together more than 300 delegates representing the travel agency community.

“We have invited our colleagues from six of our neighbouring African countries, representing Tanzania, Rwanda, Uganda, Zambia, Zimbabwe, and Malawi, so that we can share knowledge to be able to make the connection alongside growing our Intra- Africa Travel,” Sabula said.

He noted that they had also discussed the contemporary issues emerging in society, including Artificial Intelligence and how it can be used to support businesses.

He highlighted that the industry’s statistics indicate that Kenya has recovered and surpassed the pre-pandemic numbers by approximately 30 per cent. Initially, the recovery was projected to be achieved by 2025; however, by the end of 2023, the sector had already experienced a 30 per cent recovery, demonstrating a faster-than-expected rebound.

Patrick Bucha, Secretary for Tourism and Wildlife, highlighted the Ministry’s commitment to broadening the industry’s scope through medical tourism advocacy and exploring unconventional offerings beyond traditional staples.

“This forward-thinking approach underscores the government’s dedication to catering to the evolving needs and preferences of global travelers,” he stated.

He highlighted that a key focus area is developing and marketing Kenya as the “Home of Human Origins,” leveraging our rich heritage and cultural tapestry to offer an immersive journey into the cradle of humanity. Through this initiative, the aim is to captivate visitors with an unparalleled exploration of our nation’s historical and anthropological significance.

Moreover, Bucha noted that the Ministry recognises the private sector’s invaluable role in driving this transformative vision. It is eager to foster close collaborations with the Kenya Association of Travel Agents (KATA), harnessing their expertise and insights to craft innovative tourism experiences that resonate with diverse audiences.

The Chairman of KATA, who is also the Managing Director of Hemingways Travel, Joseph Kithitu, highlighted on the importance of leading the change in advocating for a shift in mindset to be able to be embraced as travel advisors by travel agents, as that aligns with the changing landscape and reflects the role they play in the travel industry.

Regarding infrastructure, Kithitu said that the infrastructure development to expand the travel and tourism industries has been steadily progressive. However, he called for the acceleration of this to maximise the benefits that come with it, stimulate growth in the tourism sector, and increase economic benefits for the nations.

The Group Managing Director and CEO of Kenya Airways (KQ), Allan Kilavuka, addressed the importance of the collaboration with the Kenyan Travel Advisors, noting that KQ recognises the crucial partnership with the advisors in the aviation industry.

Kilavuka expressed that, in line with the convention’s theme ‘make the connection’ he commits to forging deeper synergies between KQ and KATA to unlock new opportunities to elevate the entire travel ecosystem.

“This recent period has been an eventful chapter for Kenya Airways, marked by significant strides, overcoming challenges, and setting our sights on new horizons. We recorded a full-year operating profit of Sh10.5 billion, a swing of Sh16 billion from a loss of Sh5.6 billion reported in 2022! This remarkable feat speaks volumes about the commitment and diligence of every member of the KQ family,” Kilavuka said.

SourceKenya News

KATA Convention 2024: Rallying Call for Regional Tourism Integration and Collaboration.

By: Bryan Obala.

Mombasa, June 7, 2024 – The KATA Convention 2024 emerged as a pivotal platform for fostering regional synergy and collaboration within Africa’s tourism landscape. The two-day event, held at the Sarova Whitesands Beach Resort in Mombasa, brought together government officials, international associations, industry leaders, and stakeholders, with a resounding call to unlock the continent’s vast tourism potential through collective efforts.

Speaking during the event, Dr. Patrick Bucha, Tourism Secretary, delivered a keynote address on behalf of Cabinet Secretary Alfred Mutua of the Ministry of Tourism and Wildlife. Bucha emphasized the Kenyan government’s commitment to implementing policies such as the “open skies policy’’, aimed at increasing direct flights to and from the country, a strategic move to boost tourism arrivals and revenue.

“Connectivity is the lifeline of the tourism and hospitality sector,” Bucha stated, citing recent initiatives such as the launch of China Southern Airline’s direct flights between Changsha and Nairobi, as well as the inauguration of Air Brussels’ six weekly flights to Jomo Kenyatta International Airport.

Recognizing the need to diversify Kenya’s tourism offerings, the Ministry’s ambitious project to market the country as the “Home of Human Origins.” This initiative focuses on showcasing Kenya’s rich archaeological and paleontological findings, including the development of a museum and science park at the Lake Turkana Basin to highlight the nation’s human heritage.

Bucha further endorsed the diversification of tourism offerings beyond conventional staples, advocating for medical tourism and acknowledging the private sector’s pioneering role in fostering innovation within the travel industry.

The convention witnessed a strong emphasis on regional collaboration, with H.E. Amb. Paul Mukumbya, the Consul General of Uganda based in Mombasa, highlighting the importance of economic and commercial diplomacy with Kenya. Mukumbya expressed gratitude for the partnership with KATA in organizing the successful Uganda-Kenya Coast Festival and reaffirmed Uganda’s commitment to increasing visitor numbers from its largest source market, Kenya.

“We must overcome the existing seasonality between our neighboring markets and address travel advisories,” Mukumbya urged travel agents, while also encouraging investment in cruise ship tourism on Lake Victoria to enhance cross-border tourism.

Echoing the call for regional integration, Pearl Houreau, Chairperson of the Uganda Travel Agents Association, emphasized the necessity for travel agents to engage policymakers in operationalizing a unified visa among African countries. “Such a visa would significantly enhance intra-Africa travel, making it easier for tourists to move across borders and boosting regional tourism,” Houreau stated.

Patrick Kimenyi, Secretary for Rwanda Travel Agencies, stressed the need to promote African destinations, lamenting that Africans often know more about other continents than their own. “We must raise awareness and appreciation for the diverse travel opportunities within Africa,” he underscored.

Hamida Malik, Chairperson of the Travel Agents of Zambia Association, encouraged Kenyans to visit the “hidden gem” that is Zambia, revealing that an MOU has been signed with the Kenyan government to facilitate travel between the two countries. Malik also highlighted efforts to streamline visa issues, making travel between Kenya and Zambia more accessible and appealing.

As the KATA Convention 2024 drew to a close, it served as a testament to the collective aspiration of fostering regional synergy and collaboration within Africa’s tourism landscape. By convening industry leaders, stakeholders, and policymakers from across the continent, the convention paved the way for a more integrated and prosperous future for the region’s travel and tourism sector.

Jambojet: What Should You Know About Kenya Airways’ Low-Cost Subsidiary?

Jambojet is a subsidiary of Kenya Airways and has been a prominent low-cost airline in Kenya since its inception on April 1, 2014. With a mission to make air travel affordable and accessible, Jambojet has played a crucial role in transforming the aviation landscape in the region.

Let’s learn more about Jambojet’s history, growth, fleet, destinations, challenges, customer experience, economic impact, and plans of Jambojet. But first, an important introduction…

The older – and wiser – sister, Kenya Airways.

Kenya Airways, founded in 1977, is Kenya’s national carrier and one of Africa’s leading airlines. The airline’s headquarters is in Nairobi, Kenya, and operates from Nairobi’s Jomo Kenyatta International Airport hub. Kenya Airways serves over 50 destinations across Africa, Europe, the Middle East, and Asia, crucial in connecting Africa to the world.

The airline is a member of the SkyTeam alliance, enhancing its global reach through partnerships with other international carriers. Known for its modern fleet and commitment to safety and customer service, Kenya Airways has been pivotal in promoting tourism and business travel in Africa.

The history and growth of Jambojet

Founded to meet the growing demand for budget-friendly air travel, Jambojet took to the skies to offer competitive fares without compromising safety or service quality. The airline’s inaugural flight was on April 1, 2014, and it has grown significantly since then.

By the end of 2022, Jambojet had carried over 1 million passengers and aimed to transport at least 1.2 million passengers in 2023. This remarkable growth underscores the airline’s successful strategy and critical role in Kenya’s aviation. This year the airline celebrated carrying over 1.4 million passengers!

Jambojet fleet

Jambojet’s fleet consists of Bombardier Dash 8-Q400 aircraft, which are efficient and suitable for short-haul routes. As of January 2024, the airline operates eight of these aircraft. Initially, Jambojet used Boeing 737-300s but transitioned to the more modern and fuel-efficient Dash 8-Q400s to optimize operational efficiency and reduce costs.

The airline’s destinations

Jambojet serves a mix of domestic and international destinations. Domestically, the airline connects major Kenyan cities, including Nairobi, Mombasa, Kisumu, Eldoret, Malindi, Lamu, and Ukunda.

Internationally, Jambojet flies to Goma in the Democratic Republic of Congo and plans to expand further with new routes like Zanzibar City in Tanzania starting in July 2024. The airline’s ability to offer frequent and reliable flights to these destinations has made it a key player in the region’s air travel market.

Operational challenges and adaptations

The region’s COVID-19 pandemic posed unprecedented challenges for the global aviation industry, and Jambojet was no exception. Due to reduced passenger demand and travel restrictions, the airline had to suspend operations at some international destinations, including Kigali and Entebbe.

However, Jambojet demonstrated resilience by adapting its business model. One significant adaptation was diversifying into cargo operations, which provided an alternative revenue stream during reduced passenger travel. This strategic pivot helped the airline navigate the pandemic and positioned it for future growth.

The customer experience on Jumbojet

Jambojet prioritizes customer satisfaction. The airline offers various services to enhance the travel experience, including flexible booking options, online check-in, and a frequent flier program. This program allows passengers to earn and redeem flight points, adding value for regular travelers.

Additionally, Jambojet is committed to punctuality and safety, which has earned it a strong reputation among passengers. The airline’s focus on delivering a positive customer experience is evident in the airline’s high passenger load factors and positive reviews.

Future plans

Jambojet’s operations have had a significant positive impact on Kenya’s aviation sector. The airline facilitates tourism and supports various ancillary businesses within the aviation sector.

Employing over 200 people, Jambojet contributes to the region’s job creation and economic development. The airline’s affordable fares have made air travel accessible to a broader population, promoting excellent connectivity and economic integration within Kenya and the wider East African region.

Looking ahead, Jambojet has ambitious plans to expand its route network and increase its fleet size to meet the growing demand for air travel. Introducing new routes, such as the planned service to Zanzibar City, reflects the airline’s strategy to tap into new markets and enhance its competitive edge. Furthermore, Jambojet’s focus on fleet modernization and operational efficiency is optimistic that it will achieve sustainable growth in the coming years.

A niche yet essential product for the east African market

Jambojet has successfully established itself as a leading low-cost carrier in Kenya and East Africa. The airline’s commitment to affordability, reliability, and safety has made it the preferred choice for many travelers.

Despite the challenges posed by the COVID-19 pandemic, Jambojet has demonstrated resilience and adaptability, ensuring its continued growth and relevance in the aviation industry. As it continues to expand its operations and enhance its services, Jambojet is poised to play an even more significant role in making air travel accessible to all.

Whether you are a frequent flier or planning your first trip, Jambojet offers a comprehensive and customer-centric travel experience that caters to the needs of modern travelers. With its strategic vision and commitment to excellence, Jambojet is set to soar to new heights.

Source:  Simple Flying

Brussels Airlines Comeback Flight to Nairobi Marks Renewed Confidence in Kenya

Their return is spurred by Kenya’s burgeoning corporate landscape and revitalized tourism sector. The Belgian national carrier, a member of the esteemed Lufthansa Group and Star Alliance, touched down at Jomo Kenyatta International Airport on Monday evening carrying a full complement of 288 passengers. The reintroduction of Brussels Airlines’ service to Nairobi expands the Lufthansa Group’s footprint in Sub-Saharan Africa to an impressive 18 destinations. Kenya has now ascended to the position of the group’s second-largest market in terms of flight frequency, with Lufthansa operating five weekly flights, Euro Wings Discover flying six times a week to Mombasa, and the newly inaugurated six weekly flights by Brussels Airlines to Nairobi.

This enhanced connectivity is set to significantly boost passenger transfers for Belgium’s diverse travel industry, catering to charter services, corporate travel, MICE specialists, online travel agencies, and traditional travel agents alike. Brussels Airlines CEO Dorothea von Boxberg expresses her enthusiasm, stating, “We are witnessing a tremendous interest from our home market to explore Kenya. Our inaugural flights to Nairobi are fully booked, a testament to the city’s vibrant allure and its role as the perfect gateway for an unforgettable Kenyan adventure.”

The airline is diligently working to increase its flight frequency to meet the surging demand for both business and leisure travel since the market has responded with great enthusiasm. According to Belgium’s statistical agency Statbel, Belgians embarked on 6.92 million international trips in the third quarter of 2023, marking a 3.8% increase compared to the corresponding period in 2022. Although international travel numbers have not yet reached the pinnacle of 2019, when 7.15 million trips were recorded, the preference for overseas travel remains robust with 64% of Belgians planning to venture abroad for leisure in the next 12 months. Cost and affordability emerge as crucial considerations for 34% of Belgians when planning international trips.

The Kenya Tourism Board is determined to capitalize on these travel trends to bolster visitor numbers and has warmly welcomed the return of Brussels Airlines to Kenya after its prolonged absence. The year-round service is expected to significantly boost arrivals across all seasons. Europe stands as a vital source for Kenya’s tourism industry, accounting for 29% of the market and generating over 572,000 visitors in the previous year, solidifying its position as the second-largest contributor to Kenya’s thriving tourism sector.

In 2023, the number of travellers from Belgium to Kenya surged to 12,960, up from 9,981 the previous year, reflecting a growing appreciation for Kenya as an alluring tourist destination among Belgian travellers. The success of the route is evident even before the inaugural flight, with an impressive 50,000 people already having booked their flights to either visit Nairobi or travel from Nairobi to Brussels since tickets went on sale, as confirmed by airline officials.

Source: Mwakilishi

BOEING TO OPEN AFRICAN HEADQUARTERS IN ETHIOPIA

US-based global aerospace giant Boeing has announced on Monday that it will open its African headquarters in Ethiopia. The decision puts an end to speculation about South Africa and Kenya being the preferred locations to host the continental branch.

The decision also comes after Boeing recently hired Henok Teferra Shawl to lead Boeing’s African division as managing director. Shawl, a former Ethiopian Airlines executive, was picked for his vast experience in aviation and the telecommunication sector in Africa.

Why Did Boeing Prefer Ethiopia?

The move to center its African division in Ethiopia is not entirely surprising given the relationship between Boeing and Ethiopia. In 2023, Boeing entered a joint venture with Ethiopia for the manufacture of certain aircraft parts in the African nation. Boeing stated that it expected the investment in Ethiopia to generate over 300 jobs for the locals.

However, Boeing’s selection of Ethiopia in the wake of more potential contenders like South Africa and Kenya was due to Ethiopia’s exemplary aviation safety record, which places it among the best in the continent.

Boeing to Bolster Development and Growth in Africa

Boeing expects further growth and development within the African aviation market. In a statement, the company said: “Africa’s abundant natural resources and burgeoning young workforce are poised to drive significant growth in air traffic and airplane demand over the next two decades.” The company forecasts the need for over 1,000 additional aircraft over the next 20 years.

The decision to establish the company’s African headquarters underscores Boeing’s commitment both to Ethiopia and to the African aviation market. The move will allow both Boeing and Ethiopia to develop a stronger partnership and foster growth in the aviation sector over the next few years.

Early this March, Ethiopian flag carrier Ethiopian Airlines made headlines when it became the first African customer for Boeing 777X aircraft. The order of up to 20 aircraft (12 are options) will be instrumental in supporting Ethiopian’s fleet and network expansion plans.

In addition to the B777X, the airline also placed orders for 11 B787-9 Dreamliners and 20 B737-MAX aircraft from the American manufacturer.

Source: Aeroxplorer

Charting A New Course for Travel In Climate-Challenged Kenya

Charting A New Course for Travel In Climate-Challenged Kenya

NAIROBI, Kenya, May 28 – In recent months, rains have been ravaging Kenya resulting in devastating floods that swept across the country leaving an indelible mark on the country’s landscape and its people.

From the sprawling plains of the Maasai Mara to the bustling streets of Nairobi, the effects of climate change are becoming increasingly hard to ignore. This situation is not unique to Kenya, our neighbours in Tanzania and Burundi have faced a similar situation.

As we grapple with these environmental challenges, we must rethink our approach to travel and tourism in the region. Ecotourism, with its emphasis on sustainability and community benefits, offers a path forward that can help mitigate the impacts of climate change while preserving Kenya’s rich natural heritage.

The recent floods in Kenya are a stark reminder of our vulnerability to climate change. It has resulted in significant challenges for local and urban communities, disrupted wildlife habitats, and destroyed vital tourism infrastructure. Experts warn that such extreme weather patterns are likely to become more common as global temperatures rise. This not only threatens Kenya’s biodiversity but also its tourism industry, which is a significant component of the economy considering it was rated the best performing sector  in Kenya, by the government a few months ago.

Ecotourism should be regarded as a critical solution to the challenges affecting tourism sites as a result of the adverse effects of climate change. By focusing on conservation, education, and community engagement, ecotourism ensures that tourism activities do not harm the environment but rather contribute to its preservation. Take, for instance, the Maasai Mara where many establishments were partially or fully submerged. This resulted in disruptions in tourism activities, displaced animals and loss of revenue to the local community managing tourism activities while also protecting wildlife.

How can we address the issue? Tourism operators must integrate sustainable practices into their operations. As industry stakeholders, we need to take the lead in supporting and initiating conservation projects. We have an opportunity to implement green practices, such as minimizing carbon footprints and supporting local conservation projects.

We can encourage travellers to play a significant role in promoting sustainability by making conscious choices. Opting for eco-friendly lodges, reducing plastic use, and participating in conservation activities are just a few ways they can contribute.  At Hemingways Travel we have pioneered this by deploying tools that can calculate the carbon emission activities undertaken by the clients. We have also partnered with accredited bodies for carbon credit offset where organizations can offset their credits through payments or participation in activities that generate carbon credits.

Sustainable tourism not only protects the environment but also brings substantial benefits to local communities. It creates jobs, funds education, and healthcare initiatives, and reduces reliance on unsustainable practices such as poaching. For instance, the success of marine conservation efforts in Watamu is largely due to the involvement of local communities in ecotourism activities.

As we navigate the challenges posed by climate change, it is clear that sustainable tourism must be at the heart of our response. By embracing ecotourism, we can protect Kenya’s natural treasures, support local communities, and build a resilient future.

Source: Capital Fm

Global airlines gather in Dubai to tackle climate goals, supply chain woes and war impact

Global airlines will gather for an annual summit starting from Sunday under the shadow of the Israel-Gaza war to discuss ways to navigate geopolitical instability, turn climate goals into reality and overcome pressures on growth from strained supply chains.

The International Air Transport Association (Iata) will hold its 80th annual general meeting from Sunday to Tuesday in Dubai for the first time, underscoring the city’s importance as a global aviation hub and home to Emirates airline. An influential airlines lobby group, Iata has 300 members from 120 countries who carry more than 80 per cent of the world’s air traffic.

“Dubai’s world-leading connectivity places it at the crossroads of the planet. And it will soon be the centre of the airline industry’s leadership,” said Willie Walsh, IATA’s director general.

Global airlines are riding the wave of a post-pandemic travel boom and enjoying higher fares as demand exceeds the supply of available seats, but this is tempered by plane shortages, faltering supply chains, conflicts and increasing costs.

“Discussions at the Iata annual general meeting will turn to the serious issues airlines are experiencing as a result of shortfalls in aircraft deliveries, restrictions of air routes due to regional conflicts, supply chain disruptions, fuel charges and other immediate constraints on fulfilling travel demand,” Anita Mendiratta, founder of London-based consultancy Anita Mendiratta & Associates, told The National.

“Not to mention … continued labour shortages putting pressure on airline and airport operations, the increasing cost of travel and, of course, destination safety as a result of the enduring conflicts.”

Airline chiefs are also likely to address “underlying passenger concerns” after two recent flights encountered extreme turbulence, said Ms Mendiratta, also special adviser to the chief of UN tourism.

One man died and dozens were injured on Singapore Airlines flight SQ321, while 12 were injured on Qatar Airways flight QR017 that struck severe turbulence last week.

The Iata meeting will start with an updated report on the state of the aviation industry, detailing airlines’ collective financial performance.

In its latest report in December, Geneva-based Iata forecast that the industry’s net profit will surge by more than 10 per cent annually to $25.7 billion in 2024, while revenue is projected to grow 7.6 per cent year on year to a record $964 billion.

High on the agenda for the international airlines summit in Dubai are discussions around how long the prolonged post-Covid travel boom might continue as consumers become more price sensitive due to higher living costs.

A waning of the “revenge travel” phenomenon would deliver a blow to airlines already struggling with higher costs and limited aircraft availability.

Boeing and Airbus talks

Also high on the agenda will be airline bosses’ concerns around the years-long aviation supply chain problems, ranging from delayed plane deliveries to shortage of parts and fewer skilled workers. This has hampered airlines’ growth plans as they cannot ensure additional capacity to meet demand.

Manufacturing woes at Boeing and defects on Pratt & Whitney engines that power Airbus narrow-bodies are limiting the availability of planes, with airline chiefs expressing their frustration with production.

Boeing is currently in the middle of a search for a new chief executive to steer the US plane maker out of its worst crisis in years.

Airlines will use the Iata gathering as a platform for meetings with the troubled manufacturer and with its European rival Airbus to updates on their aircraft deliveries, aviation analysts said.

“Most of the conversations will be the airlines asking Boeing, ‘how are you improving the quality of builds and ensuring safety? And what is the timing for my deliveries? Has the timeline slipped? How realistic is the new timeline?'” George Ferguson, senior aerospace analyst at Bloomberg Intelligence, told The National.

The private suites of the JW Marriott Marquis where the Iata gathering will be held will set the scene for these crucial meetings.

Boeing executives attending the summit will “undoubtedly use the opportunity to reinforce business relationships and to reassure airline leaderships that it is fully addressing quality issues as well as attempt to placate them about ongoing delivery delays”, aviation consultant John Strickland said.

While much of these conversations will be around airlines’ need to boost capacity, this is “a two sided coin”, Richard Aboulafia, managing director of US-based AeroDynamic Advisory, told The National.

“Inadequate capacity can push up prices and profits, on routes where demand is sufficient,” he said. However, high ticket prices can put off price-sensitive consumers as they grapple with inflation.

Environmental pressures

Airlines at the Iata gathering, facing pressures from environmental activists, will also need to explain how they plan to meet a target of net-zero emissions in 2050.

Key to this plan in the short-to-medium term is access to sustainable aviation fuel (SAF) as a more environment-friendly alternative to conventional jet fuel.

SAF is three to five times more expensive than jet fuel, “to the extent it would knock many consumers out of air travel if it was used widely” and the investment case for SAF production plants does not appear compelling enough to attract investments, Mr Ferguson said.

“I would say the plan is on life support already. There will be a lot of conversations at the AGM around where to go from here.”

The Iata meeting will focus on how to “inject more political impetus” from governments to help ensure the aviation industry can deliver on its sustainability goals, Mr Strickland said.

The shadow of war

The Iata meeting will take place as the Gaza war enters its ninth month in June, while negotiations to secure at least a pause in hostilities have been deadlocked for months. Last week, Israel launched a number of strikes on the southern Gaza city of Rafah killing dozens of Palestinians, including women and children, and have blocked humanitarian aid into the enclave.

For airlines, the Gaza war and Russia-Ukraine war has forced them to reallocate unused capacity in those regions and avoid the use of air space where regional tensions have flared up.

“I would anticipate significant discussion of the challenging geopolitical context of global airline operations especially in a year with a record number of presidential elections,” Mr Strickland said.

Emirates airline’s succession plans

Dubai-based Emirates will be the host airline of the Iata meeting this year and all eyes will be on its president Tim Clark.

The airline recently appointed its current chief operations officer Adel Al Redha and chief commercial officer Adnan Kazim as deputy presidents.

However, Emirates has not yet named a successor to Mr Clark, a step that the industry will be watching closely.

“The Emirates succession will be talked about extensively. As the most successful super-connector, smart airlines are mindful of where Emirates is going,” Mr Ferguson said.

“Tim Clark has had a strong run at the airline and its recovery from the pandemic is progressing nicely … his successors have big shoes to fill.”

This year’s Iata discussions will also revolve around the use of artificial intelligence in air travel and prospects of air cargo, according to the event programme.

Another focus will be on improving the male-dominated aviation industry’s persistent gender imbalance. The fifth edition of the Iata Diversity and Inclusion Awards will recognise organisations and individuals who are contributing to the 25by2025, an Iata initiative to bring more women into senior aviation leadership positions.

Source:  The National News.

Qatar Airways commits to aviation expansion in Rwanda, also in Southern Africa generally

When Qatar Airways, in Dec-2019, signed an agreement with Rwanda’s government to acquire a 60% stake in the new Bugesera Airport, presently under construction, it was initially considered a strange decision for the airline, even if it had already taken an interest in the sector (specifically with the Vnukovo airport in Moscow; a deal that still hasn’t been closed).

But the airline’s method has become clearer lately as it positions itself not only to take a 49% stake in RwandAir – the flag carrier – as well, but also potentially in a so far unnamed Southern African airline.

Central/East Africa could do with a genuine continental level hub. Nairobi and Addis Ababa are both capable of being one, but neither seems to be able to get over the line for one reason or other.

Starting out with a clean slate, at an airport set up for hubbing transfer passengers (assuming it is), with a compliant minor partner, and in a country which is starting to show economic potential 30 years after its dreadful civil war, could provide Qatar Airways with leverage in what is supposed to be about to become the world’s fastest growing continent for aviation.

Qatar Airways ‘to announce southern Africa airline investment’ soon

Qatar Airways CEO Badr Mohammed Al Meer said recently that the company was planning to announce an investment in an airline in southern Africa in May-2024 or Jun-2024.

Mr Al Meer added that the investment would complement the airline’s proposed acquisition of a 49% stake in RwandAir and its 60% stake in Kigali Bugesera International Airport.

Mr Al Meer, who became the airline’s CEO in Nov-2023, sees the southern part of Africa as a gap in Qatar Airways’ network coverage that it should fill. Although Qatar Airways already flies to (in excess of) 30 cities across Africa, the southern part of the continent is regarded as being the “last piece of the equation”, and one that would help it to gain greater scale where there has been rising travel demand in recent years.

Seat capacity as well as passenger demand on the rise across the African continent

The chart below confirms that seat capacity, too, has been on the rise in the Southern African region – from 2012 to 2019, and consistently with one exception (2013). Growth in that period was almost +28%, and growth in 2023 was +22% over the previous year, bringing capacity back to the level of 2014 after the COVID-19 pandemic disruption.

What is interesting, though, is that capacity growth in Africa as a whole was considerably higher in that period (+44%), and that growth in 2023 put the capacity back to in excess of the 2019 level, not at the 2014 one. What’s more, there are almost as many seats now, less than halfway through 2024, as there were in 2023.

That does suggest that Qatar Airways might be over-egging the importance of the Southern Africa market, and that it might benefit from looking at what is happening elsewhere on the continent.

It also wishes to help expand the operations of its partner airlines in Africa to improve connectivity.

The airline’s focus already seems to be on the east and south of Africa

As the map below shows, the airline is already established, with routes mainly in the east and south rather than the west and north of the continent.

It is entirely possible that Mr Meer might have been referencing the proposed stake in RwandAir, rather than a further one in a southern African country’s airline; even if airlines such as South Africa Airways, for example, would surely benefit from it.

Rwanda‘s strategic position at the heart of Africa

Rwanda is located almost on the equator and is neighbours with UgandaBurundiTanzania and the Democratic Republic of the Congo. It can hardly be referred to as a southern African country, except insofar as it lies south of the Sahara Desert and the Maghreb, which are the usual designators of the ‘north’.

Location of Rwanda

Source: Google Maps.

But Rwanda‘s strategic location is paramount – approximately in the centre of the continent, and with the new airport under construction there (Bugesera) in a position to do what Kenya‘s Nairobi Jomo Kenyatta airport and Ethiopia‘s Addis Ababa Bole airport aspire to do without ever quite succeeding: namely, to act as a centralised hub for the entire continent.

RwandAir has established its own small niche hub in the region

In order to have a successful hub a strong flag carrier is needed, and although RwandAir does not have the scope of Nairobi or Addis Ababa, it is growing.

The route network map below shows that the airline has an established network to the east, west and south of the continent (only the north is underrepresented), as well as to major cities in western Europe and the Gulf (including Qatar), based at the existing airport.

RwandAir: network map for the week commencing 27-May-2024

Source: CAPA – Centre for Aviation and OAG.

The bloody civil war is becoming a distant memory as services, finance and tourism dominate today’s economy

Rwanda is best known internationally for two things.

Firstly, the civil war between 1993 and 1996, which saw the slaughter of up to 800,000 people, one tenth of the population, in just three months in 1994.

Secondly, the more recent agreement (2023) struck with the United Kingdom to receive illegal immigrants into the UK as deportees.

It is fair to say that although it is still a poor country by ‘First World’ standards, its agriculture still taking the form of subsistence farming on rich volcanic soils that promise much more, Rwanda has experienced a dynamic transformation since the genocide.

It is today regarded as a fast growing Sub-Saharan economy, yet conversely with growing levels of poverty. It has major public investments, is a major exporter of coffee, and is in competition with Uganda for regional influence.

Rwanda has only a small industrial sector, so a great deal of emphasis is put on the service sector, including banking and finance, hotels and restaurants, transport, storage, communication, insurance, real estate, business services and public administration (which is its largest sector).

Tourism is one of the fastest growing economic resources and became the country’s leading foreign exchange earner almost 20 years ago. In spite of the genocide’s legacy, the country is increasingly perceived internationally as a safe destination, with a tourism focus on creatures in their natural habitats.

Approaching two million annual tourists before the COVID-19 pandemic

Tourism spending, which was next to zero as recently as 2004 (a decade after the genocide), reached USD636 million in 2019, from USD67 million in 2005.

In 2018 there were 1,715,000 tourists (the total declined slightly in 2019), and that was the highest total ever recorded, well above the average (1.2 million) for the 13 East African states.

It is a mark of how far the ‘land of a thousand hills’ has come touristically that adverts for ‘Visit Rwanda‘ are beamed around the world on televised football matches in London (ironically, the Emirates Stadium) during Premier League, domestic cups, and Champions League matches, on account of a sponsorship deal with Arsenal Football Club.

For Qatar Airways it is ‘virgin territory’, and with less Chinese influence than elsewhere on the continent

So it is beginning to become evident why Qatar Airways is interested in Rwanda – a country with a growing economy in the service, finance and tourism sectors, centrally located on the continent, with an economic workforce about to be reinforced by immigrants, and one where although there is economic cooperation with China, it is not at the same level as found elsewhere in Africa.

(Indeed, the Portuguese company subsidiary Mota Engil Engenharia e Construção Africa SA replaced China State Construction Engineering Corporation as the key contractor for the new airport project when construction began in 2017, a year after the project was pitched to delegates at the Global Airport Development conference in Lisbon).

The new Bugesera airport is a USD1.3 billion project, to handle up to 8mppa eventually

While an investment into RwandAir may or may not happen, the one by Qatar Airlines into the new Bugesera Airport is tangible.

The map below is of the three existing commercial airports in Rwanda, including the Kigali International Airport serving the capital.

Existing airports in Rwanda

Source: CAPA – Centre for Aviation and OAG.

In 2019 the airline took a 60% stake in the USD1.3 billion (originally USD800 million) international airport being constructed in Rwanda, Bugesera; one has to say, at a leisurely pace, as it is currently due to open in 2027/28, put back from 2026.

Part of the reason for the delay, apart from the pandemic, is that in Mar-2019 some elements of the construction were put on hold to accommodate a redesigning of the facility.

Then, in 2021, it entered into a code share agreement with RwandAir, operating around 150 flights between Doha and Kigali between them, between 2022 and 2023.

RwandAir is very much a junior partner. Although Qatar Airways operates over 250 aircraft, RwandAir has only 14 aircraft, including two ageing Airbus A330-200s that serve intercontinental routes.

In May 2023 Qatar Airways Cargo initiated a hub at Kigali International Airport in partnership with RwandAir for its cargo handling, in order to expand the airline’s African air cargo network and meeting up to 5% of its annual economic growth forecast for the continent within a decade.

‘No better partner or location for an African hub’ – Qatar Airways

Qatar Airways has previously stated that it couldn’t find any better partner or location to create or to build a hub for it and its partners in central Africa other than Kigali.

The airport, located 25km southeast of Kigali, which is being built in cooperation with Qatar‘s government, will be equipped with a 130,000sqm terminal and will have capacity to handle 1.7 million passengers per annum initially (phase 1) and eight million eventually – that would put it in the top five African airports now.

It will have a 4,200m runway.

The potential to fill a void and thereby create a broader, even possibly pan-continental, hub

Just what impact Bugesera will have in the immediate region and on the continent as a whole is yet to be revealed, but there is the potential at least for it to fill a void in the central/east African region – where Nairobi’s main airport needs a new terminal but delivery of it is long overdue, and while Addis Ababa‘s new airport, the site of which was first conceived in 2014, has yet to see a spade turned on it.

These two airports were featured in the CAPA – Centre for Aviation reports: New Nairobi Airport PPP terminal confirmed as government investigates ‘status’ of Kenyan airports from Dec-2023 and New Addis Ababa airport eight years in planning has still not seen a spade turned from Nov-2022.

Rwanda does not have the population (14 million) for Bugesera to become a major point-to-point airport, and the existing Kigali Airport does not make the Top 20 busiest airports on the continent.

But the largest cities are not always the biggest transfer points, as AtlantaSingaporePanama City, Reykjavik, and others can testify; even Sal, in Cape Verde, during South Africa‘s apartheid era.

The investment Qatar Airways has made, and is apparently about to make, in Rwanda has a distinct purpose. Together with an expanded RwandAir it can set up a central continental base and hub to compete with any other, and one that would be well placed to interact with any future expansion in the southern part of the continent.

Source: Centre For Aviation.  

US, Kenya Unveil Initiatives Boosting Heritage, Tourism, Workforce

During the recent State Visit of President William Ruto and First Lady Rachel Ruto of the Republic of Kenya, the United States and Kenya announced new initiatives and public diplomacy programs to elevate culture as a diplomatic platform that will bring people together, preserve cultural heritage, and strengthen the economies of our two countries. The Department’s Ambassadors Fund for Cultural Preservation (AFCP) will continue the United States’ long-term investments across Africa to preserve and protect cultural heritage and boost tourism. In addition, in partnership with key industry leaders such as the Recording Academy, the University of Southern California School of Cinematic Arts, and other leading private sector and civil society institutions, the United States will launch new programs that will promote collaboration, build capacity, and bolster professional creative industry ecosystems. Through these initiatives, the United States and Kenya will connect industry leaders in music, film, and television and provide key technical and vocational skills needed to support a sustainable and thriving creative infrastructure.

As part of the shared focus on tourism and cultural heritage, the AFCP will support efforts led by the National Museums of Kenya to preserve the archaeological site of Takwa, a 15th- and 16th-century Swahili trading town. AFCP projects help preserve a wide range of cultural heritage – including historic buildings, archaeological sites, ethnographic objects, paintings, manuscripts, and indigenous languages and other forms of traditional cultural expression – and contribute to local economies by supporting tourism. Since 2001, AFCP has invested $18.2 million in the preservation of cultural heritage in over 45 countries in Africa.

Beginning this summer, shared efforts to bolster Kenya’s growing creative economy will get underway. The ACTV will bring television professionals from Kenya and across the African continent to  Los Angeles for a four-week residency at the University of Southern California School of Cinematic Arts, where they will be mentored by American television writers, producers, and industry experts. ACTV focuses on professional development and networking opportunities for television writers, producers, and other technical fields such as art direction, cinematography, editing, and line producing.

In addition, mid-level music industry professionals from Kenya will participate in the first-ever American Music Mentorship Program (AMMP), which is a partnership between the Department and the Recording Academy. AMMP connects international mid-career music industry professionals with mentors selected by the Recording Academy. AMMP was first announced by Secretary Blinken at the launch of the Global Music Diplomacy Initiative in September 2023.

As part of the Community College Initiative Program (CCI) – which taps into the U.S. community college system to provide educational and technical training to international students – the United States will provide Kenyan students with a tailored academic program at U.S. community colleges that will build the students’ technical skills in film and television production, enhance their leadership capabilities, and prepare them to enter the workforce upon returning to Kenya.

Finally, as part of the American Film Showcase (AFS) program, the Film and TV Leadership Initiative will bring Kenyan and other African filmmakers to the United States for workshops and networking with their American counterparts, including at the 2024 Middleburg Film Festival in Middleburg, VA. They will also engage with their American counterparts in Atlanta, GA;  Los Angeles, CA; and Washington, DC;. The Department will also send leading U.S. film and television professionals to conduct workshops in Kenya as a reciprocal exchange.

Source Mirage News.