The Kenya Association of Travel Agents (KATA) has welcomed the move by Tanzania to lift the ban on Kenyan flight operators into their country.

KATA Chief Executive Officer Ms. Agnes Mucuha stated that the lifting of the ban is great news to travel agents and their clients.

“We are excited at the lifting of the ban on flights to Tanzania. Our passengers were greatly affected as they had to suddenly cancel pre made travel plans which were greatly anticipated after the lifting of the international travel restrictions imposed due to Covid-19. Now passengers willing to travel to Tanzania can book their travel through their trusted and certified KATA Travel Agent,” she said.

The ban was lifted after the Kenya Civil Aviation Authority issued a circular indicating the removal of the required 14 days of mandatory quarantine for arriving passengers from Tanzania.

On August 26, 2020, the Tanzanian aviation authority banned three Kenyan airlines- The Air Kenya Express, Fly 540 and Safarilink Aviation- from flying into Tanzania in retaliation to Kenya issuing the directive on mandatory Covid-19 quarantine.

The Director General, Tanzania Civil Aviation Authority Mr Hamza Johari said, “ In view of that (the lifting of the mandatory quarantine) and on a reciprocal basis, the United Republic of Tanzania has now lifted suspension for all Kenyan Operators namely Kenya Airways, Fly 540 Limited, Safarilink Aviation and Air Kenya Express Limited”.

“The resumption of flights for all Kenyan operators is with immediate effect and the Kenya Civil Aviation Authority has been informed accordingly,” He added.

Mr. Johari said that Tanzania will always strive to adhere to the fundamental principles of Chicago Convention 1944 and Bilateral Air Services Agreement between the two states.

In July, Tanzania banned Kenya’s national carrier Kenya Airways from flying in in retaliation against Kenya’s move to remove Tanzania from a list of countries that had been allowed to resume travel into Kenya after the resumption of international flights from August.

With the current global pandemic there is one topic that seems to dominate the travel industry: security. When considering travel bookings, passengers want to see their personal health as well as their financial investment protected. Now more than ever, travellers are sceptical towards flying and especially sensitive towards buying tickets of airlines that they fear might eventually file for bankruptcy.

Hahn Air has the solution that offers confidence and reassurance in these uncertain times. The German airline, which specialises in providing distribution and ticketing solutions to travel agencies and airlines, introduced its insolvency protection Securtix^® in 2010. This is a comprehensive compensation in case of insolvency of the operating partner carrier. Best of all, this is a free benefit that travel agents and passengers can take advantage of, when they issue any of Hahn Air’s partners on the HR-169 document. Since its introduction, Hahn Air has already issued over 42 million insolvency-safe tickets through travel agencies across 190 markets.

How does it work? In case a passenger with an HR-169 ticket is affected by the insolvency of any of Hahn Air’s over 350 partner airlines, Hahn Air and its partner Swiss Re International SE vouch for a full refund of the unused part of the ticket including taxes.

Additionally, Hahn Air offers protection for stranded passengers and guarantees to reimburse costs that might arise in such an event. This includes the difference between the original ticket price and the costs for a new ticket in the amount of up to € 125, costs for meals and hotel accommodation in the amount of up to € 75 as well as extra expenses like transfers and phone calls in the amount of up to  € 50. To claim this kind of reimbursement the insolvency must have occurred within 24 hours before departure or during a trip where the customer has already used at least one coupon. 

Hahn Air’s Vice President Agency Distribution Kimberley Long said “We want to offer that peace of mind when travel agents and respectively passengers use our services. We have been offering this comprehensive insolvency protection for over 10 years now and we are proud that Securtix^® has proven to be a valuable service for our more than 100,000 travel agency partners and their clients.”

More information about Hahn Air can be found at www.hahnair.com.

Regional low-cost carrier Jambojet has launched non-scheduled/charter flights in a move to diversify revenue streams following the advent of the COVID-19 pandemic.

The operator is seeking for a rebound from the depressed operational environment occasioned by the previous suspension of all passenger flights on both its domestic and regional routes.

“Due to the effects of the COVID-19 pandemic, we have seen a shift in consumer needs. Consumers now, more than ever, want privacy, convenience and their safety and wellbeing assured,” said Jambojet’s Acting Managing Director Karanja Ndegwa.

Jambojet says it is currently deploying a mere 55 per cent of its capacity on its scheduled flights leaving it with spare volume allowing the potential operation of charter services.

For instance, the carrier is only running five out of its available fleet of six.

“We keep matching demand to the capacity we have. This is to ensure we don’t hurt as a carrier,” added Ndegwa.

The launch of the chartered flights allows clients to make bookings on non-scheduled routes with pricing being centrally determined by distance covered.

The flights can be deployed to and from any part of the world pending requisite approvals by local regulators with a full-payload allowing flights of between three to four hours while the charter accommodates a maximum of 78 passengers per flight.

Jambojet estimates it has lost up to Ksh.1.2 billion in revenues from the suspension of passenger flights between March and mid-July.

The airline is however hopeful of a near term rebound including the return of its flights to Entebbe and Kigali.

“Any business in the transport space was affected be it low-costs or legacy operators. We have lost almost 80 per cent of our revenues. However, you can easily dust down and pick up the pieces as a regional carrier that you would as an international operator,” said Jambojet’s Head of Sales and Marketing Titus Oboogi.

The low-cost carrier has continued to innovate its way around the pandemic including the recent launch of direct flights that do not require stopping at its main terminus in Nairobi following approval by mother company Kenya Airways.

Source: https://citizentv.co.ke/business/jambojet-launches-charter-flights-move-supplement-operations-345053/

Over recent weeks, a growing number of destinations have started to open up again to international tourists. UNWTO reports that, as of early September, 53% of destinations had eased travel restrictions. Nevertheless, many governments remain cautious, and this latest report shows that the lockdowns introduced during the first half of the year have had a massive impact on international tourism. The sharp and sudden fall in arrivals has placed millions of jobs and businesses at risk.

Counting the economic cost

According to UNWTO, the massive drop in international travel demand over the period January-June 2020 translates into a loss of 440 million international arrivals and about US$ 460 billion in export revenues from international tourism. This is around five times the loss in international tourism receipts recorded in 2009 amid the global economic and financial crisis.

UNWTO Secretary-General Zurab Pololikashvili said: “The latest World Tourism Barometer shows the deep impact this pandemic is having on tourism, a sector upon which millions of people depend for their livelihoods. However, safe and responsible international travel is now possible in many parts of the world, and it is imperative that governments work closely with the private sector to get global tourism moving again. Coordinated action is key.”

All global regions hit hard

Despite the gradual reopening of many destinations since the second half of May, the anticipated improvement in international tourism numbers during the peak summer season in the Northern Hemisphere did not materialize. Europe was the second-hardest hit of all global regions, with a 66% decline in tourist arrivals in the first half of 2020. The Americas (-55%), Africa and the Middle East (both -57%) also suffered. However, Asia and the Pacific, the first region to feel the impact of COVID-19 on tourism, was the hardest hit, with a 72% fall in tourists for the six-month period.

At the sub-regional level, North-East Asia (-83%) and Southern Mediterranean Europe (-72%) suffered the largest declines. All world regions and sub-regions recorded declines of more than 50% in arrivals in January-June 2020. The contraction of international demand is also reflected in double-digit declines in international tourism expenditure among large markets. Major outbound markets such as the United States and China continue to be at a standstill, though some markets such as France and Germany have shown some improvement in June. 

Looking ahead, it seems likely that reduced travel demand and consumer confidence will continue to impact results for the rest of the year. In May, UNWTO outlined three possible scenarios, pointing to declines of 58% to 78% in international tourist arrivals in 2020. Current trends through August point to a drop in demand closer to 70% (Scenario 2), especially now as some destinations re-introduce restrictions on travel.

The extension of the scenarios to 2021 point to a change in trend next year, based on the assumptions of a gradual and linear lifting of travel restrictions, the availability of a vaccine or treatment and a return of traveller confidence. Nonetheless, despite this, the return to 2019 levels in terms of tourist arrivals would take between 2½ to 4 years.

Source: https://www.unwto.org/news/international-tourist-numbers-down-65-in-first-half-of-2020-unwto-reports

The International Air Transport Association (IATA) has called on the government of Canada to relax its stringent travel restrictions and allow air travel within, to and from the country to return to a semblance of normalcy.

The international aviation trade organization says on 14 September that blanket testing for the coronavirus could be a good alternative to the current measures, which require 14-day quarantines for most inbound passengers, be they visitors, citizens or permanent residents.

“‘There are alternatives to the quarantine measures currently in place that can both keep Canadians safe as well as revive the economy, “IATA director general Alexandre de Juniac says. “The ICAO multi-layered approach is one. The work that Air Canada and WestJet are doing on testing adds another dimension.”

”It is critical that the government of Canada act on these before the economic and social damages become permanent and the public health consequences of mass unemployment become even more apparent,’’ he adds.

In March, the country imposed some of the strictest lockdown and shelter-in-place measures in the world in order to stop the spread of the highly-contagious virus. Six months on, many of those measures are still in place, angering travel companies, passenger carriers and related industries, and hindering the country’s travel sector from returning to normal operations.

Canadian customers are also wary of the contracting the coronavirus, and are still not returning to air travel in significant numbers.

IATA estimates that about 410,000 jobs and some C$39 billion ($29.6 million) of Canada’s gross domestic product are at risk because of the rules. It adds that 3.2% of the country’s GDP, or 633,000 jobs, are supported by the air transport sector and foreign tourists arriving in the country.

Canada effectively sealed off the longest peaceful border in the world, between the USA and Canada, for non-essential travel in March. That border crossing ban remains in effect and has been extended several times. Barring a further extension, it is now is due to expire in a week, on 21 September.

Air Canada, based in Montreal, has repeatedly blasted the government of Canada for its draconian travel restrictions. Chief executive Calin Rovinescu has harshly criticised the government for the extension of the measures which, coupled with already fragile demand, have prevented it and its Canadian peers from getting back to any semblance of normal business operations.

The legacy carrier in July posted a stunning C$1.8 billion loss during the pandemic-ravaged second quarter, during which it transported just 4% of the number of passengers it carried during the same period one year ago, in what Rovinescu calls “an impossible operating environment”.

Last week, Montreal-based vacation specialist Air Transat said that since the country is still keeping a tight rein on travel between provinces and beyond its borders, the government should step in to offer financial aid to the travel companies who are suffering as a result.

“With Canada maintaining some of the most stringent border restrictions and still requiring quarantine for people returning from abroad, it’s time for the government to provide targeted support for the airline sector to ensure the existence of a competitive industry in Canada over the long term,” Transat said on 10 September.

Calgary-based WestJet says on 14 September that it is reinstating some flights to the USA from early October, after the border is expected to be opened. The airline released an updated schedule that is, it says, “designed to get Canadians to and from key destinations while supporting the economic recovery of Canada through continued domestic flying”.

Source: https://www.flightglobal.com/networks/iata-encourages-canada-to-relax-travel-restrictions/140164.article

Travel Associations have called upon the International Air Transport Association (IATA) to formulate a policy that will guarantee a refund for cancelled travel during the COVID-19 period.

Travel Associations worldwide who attended a virtual forum organised by the United Federation of Travel Agents (UFTAA) agreed that the refund policies by airlines have been a challenge for passengers and travel agents.

The Kenya Association of Travel Agents (KATA) has been very vocal in demanding for refunds from airlines. The calls headed by KATA Chairman Mr. Mohammed Wanyoike and CEO Ms Agnes Mucuha have been relentless especially due to the negative effects to the economy caused by the COVID-19 pandemic.

During the forum, it emerged that while some airlines had started making refunds, others offered vouchers serving as Credit Notes which will take time to realise.

Majority of the presentations by associations that were made during the forum urged IATA strongly to come up with a policy that safeguards monies of travel agents and passengers during such disasters or market situations.

“It is unfair and that hundreds of thousands of passengers and thousands of agents across the world have been put to unprecedented challenges by the Airlines when refunds were sought for flights that were cancelled, during the last five months” said several leaders during the forum held on August 31, 2020.

UFTAA’s Mid-Year Forum 2020 was attended by over 180 delegates from across the world.

Their presentations offered outstanding learning content for the industry stake-holders to capture the various situations that exist in different parts of the world. There was a focus on the trends as well as plans initiated to overcome the challenges posed by the most negative COVID-19 impact.

It was projected by some speakers that it would take a couple of years for the travel & tourism business to bounce back to the pre COVID numbers. It was important that what is initiated during this transition period has to be well planned.

UFTAA President Mr. Sunir Kumar R detailed the various initiatives UFTAA had taken up in their debates with IATA and Airlines to bridge the gap between the “crisis and relief”. For over 4 Months UFTAA actively represented the associations and their members to help address the challenges posed. Vice President & Chairman of Air Matters, Mr. Yossi Fatael, presented a lucid picture of the evolving situation and the trends that one must keep an eye on.

In view of the most enthusiastic response witnessed from the world of Travel & Tourism Industry leaders and stakeholders at this forum, UFTAA Board decided in favour of a second UFTAA Mid-Year Forum 2020 to be held virtually during September 2020. The Part 2 of UFTAA Forum will offer extensive interaction opportunity and learning from best practices that are prevalent, globally, for the benefit of its Associations and their members.

By Caroline Rwenji, Kenya Association of Travel Agents

Jambojet has increased fares on domestic routes by 37 percent, signalling rising demand for travel after the easing of Covid-19 lockdown.

The carrier, has increased fares in five of its domestic routes including Kisumu, Mombasa, Eldoret and Malindi and Diani, in what look set to boost its revenues.

Passengers going to Kisumu, Mombasa, Eldoret, and Malindi are paying a one-way minimum fare of Sh6,600 up from Sh4,800 on the routes from its hub in Nairobi, reflecting a 37.5 percent increase.

The carrier, whose passenger capacity has increased from 30 percent in the weeks after Kenya resumed domestic flights in July 1 to the current 58 percent.

“As is the practice in the airline industry and in the transport sector as a whole, our tickets are priced on demand and supply basis. When the demand is high, our prices go up,” said the airline’s acting managing director Karanja Ndegwa in an interview yesterday.

“Additionally, if you book your ticket closer to the date of travel, the prices are significantly higher than if you book and pay months ahead. This is why we always encourage our customers to plan and book their travel well in advance,” said Mr Ndegwa.

The carrier has increased air fare at a time the aviation industry is in turmoil following disruptions caused by Covid-19 that saw airlines around the world grounded.

Jambojet is yet to start international flights because of strict health guidelines issued by Rwanda and Uganda.

The carrier plans to start flying between cities in Kenya without stopping at its hub in Nairobi on October 2, after getting approval from the Kenya Civil Aviation Authority (KCAA).

The carrier will charge flights for Mombasa to Eldoret and Kisumu, Eldoret and Kisumu to Mombasa routes at Sh8,900 one- way for each route.

Last month, the carrier entered into a deal with Safaricom to allow its passengers to pay their flights using Safaricom Bonga Points as it moves to cushion its customers currently struggling economically under the Covid-19 pandemic.

Source: https://www.businessdailyafrica.com/corporate/companies/Jambojet-domestic-fares-up-37pc/4003102-5621626-v7mq4jz/index.html

Kenya Airways is moving closer to nationalisation as the carrier together with the National Treasury are conducting valuation of the individual and small shareholders to ascertain their value.

The airline opened talks with the minority shareholders as they seek to get them out of the shareholding ahead of the nationalisation of the carrier.

The shareholders who are in talks with the KQ include KLM and banks, who are discussing buyout plan of their stakes as the nationalisation process takes shape following the passage of the Bill that legally underpins the proposal.

The airline’s board chair Michael Joseph said the talks on reverting of shares to government has already started and discussions have been ongoing with all the involved parties.

“We are having discussion with minority shareholders that include banks to determine how to take them out of current shareholding,” he said.

Mr Joseph, who spoke during the company’s investors briefing, said they are also in talks with individual shareholders and they are at the moment in the process of valuing the shares, pointing out that they will be bought out once the valuation has been completed.

“Share prices are not true reflection of the value. We are at the moment doing the valuation and they (shareholders) will receive value for their shares,” he said.

He said the relevant Bill is currently at the committee stage in parliament and after it has been passed it will be taken to the President for endorsement, establishing an aviation holding company that will bring together all the aviation agencies at the airport.

Air-France KLM, which had the option of selling its stake to the government and staying on as a technical partner for the airline, has opted to exit.

Kenya has reached an agreement with Air-France KLM on the offer price, which will be a premium on the carrier’s prevailing trading price at the Nairobi bourse. The same KLM offer price will be used to acquire the minority shareholders, who hold about 2.8 percent of the shares currently valued at Sh397 million.

The state said in June that they had come up with a formula that will be used in buying out the minority shareholders.

The government at the moment has a 50 percent stake on the national carrier, with 38 percent belonging to the banks after they converted their loans into shares, seven percent owned by the Dutch based airline KLM with the remaining shares owned by individual shareholders.

In 2017, the State converted Sh16.8 billion worth of loans it had provided to the company into shares as part of the airline’s debt restructuring. The government also holds another Sh7.7 billion worth of convertible debt.

Mr Joseph said the nationalisation process is ongoing and it is currently at the committee stage in parliament and it is expected to take effect once it has been gazetted.

Under the plan, the government is expected to buy out the remaining holders of 51.1 per cent of the shares and form Aviation Holding Company to run the national carrier and Kenya Airports Authority (KAA), which manages airports in the country.

KQ is seeking a new lease of life after the parliament shot down its plans to take the management of the KAA.

The airline has been making losses for years with the carrier plunging into deeper financial woes in its half year with Sh14 billion loss from Sh8 billion in corresponding period last year.

The loss was largely due to the grounding of services in March this year occasioned by Covid-19 pandemic that saw countries worldwide close their airspace for passenger flights.

Source: https://www.businessdailyafrica.com/corporate/shipping/KQ-nears-nationalisation-as-talks-on-shares-enter-homestretch/4003122-5620952-nbb7ym/index.html

Qatar Airways has resumed flights to more than 50% of its pre-COVID-19 destinations, the airline announced.

And more destinations will be added in September.

Since the outbreak of the pandemic, the Qatar Airways network has never fallen below 30 destinations with continuous connections to five continents.

By mid-September, Qatar’s national airline will operate over 650 weekly flights to more than 85 destinations.

The airline is resuming flights to the following destinations in September:

1. Houston (three weekly flights started September 2 increasing to four weekly from September 15)
2. Kathmandu (one weekly flight starting September 5)
3. Mogadishu (three weekly flights starting September 6)
4. Philadelphia (three weekly flights starting September 16)
5. Sialkot (three weekly flights started September 1)

Qatar Airways is also increasing flight frequencies in places like:

1. Ankara (increased to daily from September 1)
2. Baghdad (increased to 11 weekly flights from September 3)
3. Basra (increased to daily flights from September 2)
4. Djibouti (increasing to six weekly flights from September 6)
5. Erbil (increasing to 11 weekly flights from September 3)
6. Ho Chi Minh City (increasing to daily flights from September 15)
7. London Heathrow (increased to four daily flights from September 1)
8. New York JFK (increased to double daily flights from September 1)
9. Sulaymaniyah (increased to daily flights from September 2)

Qatar Airways Group Chief Executive, Akbar Al Baker, said, “The gradual rebuilding of our network has been focused on strengthening connections between our hub in Doha and key gateways around the world as well as major business and leisure destinations.

The resumption of flights to Philadelphia will provide seamless connections via our U.S. partners to several key domestic points such as Atlanta, Detroit and Miami.

Similarly, the increase in frequencies to Djibouti, Ho Chi Minh City, London and New York will provide further air freight capacity to this important trade and economic centres.”

“The recovery of international travel will take time but returning to over 50% of our pre-Covid-19 network is a significant milestone.

To ensure travelers can plan their trip with confidence, the airline allows unlimited date changes and passengers can change their destination as often as they need if it’s within 5,000 miles of the original destination.

The airline does not charge any fare differences for trips taken before December 31, 2020. Thereafter, the tariff regulations apply.

All tickets booked by December 31, 2020 are valid for two years from the date of issue. Source: https://travelobiz.com/qatar-airways-resumes-flights-to-over-50-destinations/