More Choices and Easy Ticketing with Hahn Air

Imagine Mr. Ronald walks into a travel agency with a special request: He urgently needs to go to Japan for business as a result of the COVID-19 pandemic. To visit his company’s plants in the various Japanese cities, he will need to take many different flights on board various airlines in Africa, the Middle East and the Far East. A trip of this nature could pose a challenge for any travel agent! While it is not a problem to find and book available flights in the GDS, issuing the tickets might be a different story as many of these airlines may not be connected to their local payment system (BSP). Often, local airlines are not even participating in the GDS and therefore, their flight schedules, routes and prices are not visible. Is there a simple and time-efficient solution to find the best travel plan for this client? 

This is a perfect example of how Hahn Air provides a “win-win-win” solution to travel agents, airlines and customers. The number one ticketing expert has been offering support with its services for more than 20 years. There is a reason why over 100,000 agencies in 190 markets and more than 350 partner airlines trust in Hahn Air’s services.

Simplicity is key

If travel agents cannot issue an airline ticket after completing a booking, they can simply select Hahn Air as the validating carrier and issue the flight on the Hahn Air HR-169 ticket. Why? Because Hahn Air is an IATA airline with an unparalleled network of partner airlines. It has been specialising in distribution services for other airlines since 1999; its partner carriers can make their flights available to travel agents via its leading ticketing database. With over 350 carriers to choose from, there are plenty of options, even when planning a complicated trip around the world.

Unparalleled network

Hahn Air has even more to offer. With its H1-Air and X1-Air products, it connects travel agents with airlines that would normally not be available in the GDS at all. Under the codes H1 and X1, travel agents can find the services of 90 additional airlines that typically do not have a GDS contract of their own. They can simply be issued on the HR-169 ticket as well.

The Hahn Air Quick Check

With all the choices available, there is a very easy way to find out which carriers or a combination of carriers can be issued on the Hahn Air HR-169 ticket in each market. Travel agents can simply use the Quick Check tool on www.hahnair.com.

Round the clock support

Travel agents today face a lot of complexity when booking a ticket. Whether it is an issue with the GDS or a question about the airline’s services, the Hahn Air Service Desk offers support with all ticketing enquiries 24 hours a day and seven days a week at service@hahnair.com.

Free insolvency protection

Now, imagine that the customer has received his travel plan. With the HR-169 ticket, he can rest assured that even in the event that one of the carriers becomes insolvent, he will get his money back for the unused part of the ticket. Why? Because Hahn Air is the only provider in the industry to offer complimentary ticket protection. Since the introduction of Securtix® in 2010, over 41 Million passengers have enjoyed the security of Hahn Air’s insolvency protection.  

More than a ticket

In the end, Mr. Ronald will enjoy a smooth trip. He might not even be aware that his journey is facilitated through Hahn Air – just like the millions of passengers that travel with the HR-169 document. “We are strictly a B2B company and do not target travellers directly”, says Candy Kasonkomona, Regional Vice President Southern, Eastern & Central West Africa, Agency Distribution. “However, for Hahn Air’s travel agent partners, we hope that our services make all the difference in the world.”

To learn more about Hahn Air’s products and services, KATA members will join Kimberley Long, Vice President Agency Distribution and Candy Kasonkomona, Regional Vice President Southern, Eastern & Central West Africa, Agency Distribution on Tuesday, August 18th 2020 in an exclusive KATA Online Industry Meeting.

 

Jambojet gets nod for direct Kisumu to Mombasa flights

Budget carrier Jambojet has received approval to fly between cities in Kenya without stopping at its hub in Nairobi and also expand into cargo business.

The carrier had sought permission from Kenya Civil Aviation Authority (KCAA) to fly directly from Mombasa to Kisumu and from Kisumu to Eldoret- Malindi-Lamu without stopping in Nairobi.

Jambojet acting chief executive officer Ndegwa Karanja said they sought permission to carry conventional cargo within and outside the country where the carrier currently flies.

“With the approval we shall now do conventional cargo that will basically involve the belly freight as at the moment we are not in position to acquire a dedicated cargo flight,” said Mr Ndegwa.

The carrier is also seeking permission to expand its existing international destinations from where they fly at the moment and they have got approval from the regulator to fly directly from Mombasa-Kigali-Mombasa, Mombasa-Entebbe-Mombasa and Mombasa- Dar es Salaam-Mombasa.

Other international routes include Mombasa- Dar es Salaam- Zanzibar-Mombasa, JKIA-Entebbe—Goma-Entebbe-JKIA and JKIA-Kigali-Bujumbura-JKIA.

KCAA had sought public opinion in June before giving approval to Jambojet, which at the moment flies to two international routes in Kigali and Entebbe.

The approval comes at a time when the aviation industry is in turmoil following the disruptions caused by the Covid-19 that saw airlines around the world grounded.

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

Mr Ndegwa said that apart from the stringent measures, the demand for flying is still low at the moment.

“We have not yet made a decision on when to resume international flights as the demand has remained low since the services resumed,” he said.

The carrier has been expanding its fleet and last year acquired four new aircraft as it sought to expand to regional countries.

The airline will use aircraft B737, implying that the carrier plans to acquire a new high capacity aircraft for regional routes. It will also deploy DHC8 and ATR72 based at the JKIA and Mombasa, as some of its airplanes based at the coastal city.

The Nairobi- Kigali route began in November last year while the Entebbe route started in 2018.

Source: https://www.businessdailyafrica.com/corporate/companies/Jambojet-gets-nod-for-direct-Kisumu-to-Mombasa-flights/4003102-5606456-bebva7/index.html

 

Albakri Appointed IATA Senior VP

The International Air Transport Association (IATA) has announced that Muhammad Albakri, IATA’s Regional Vice President for Africa and the Middle East (AME) will be appointed Senior Vice President for Customer, Financial and Digital Services (CFDS), based in Geneva.

The appointment becomes effective on March 1, 2021. At that time Aleks Popovich, who currently holds the position, will retire.

“Over the past 16 years Aleks has driven some of the most critical elements of IATA’s operations, while leading major transformational projects for the airline industry.

“This includes IATA’s financial settlement products, which securely processed $457 billion of industry money in 2019, during a time of tremendous innovation in financial technology.

“And he delivered critical flagship programs that continue to change the industry—introducing cost-effective self-service options under the banner of Simplifying the Business, enabling airline retailing with New Distribution Capability (NDC), and streamlining decades of legacy processes with ONE Order.

“Aleks leaves behind a great team with a clear focus on customer service that will continue to drive critical changes under the capable leadership of Muhammad,” said IATA’s Director General and CEO, Alexandre de Juniac.

Albakri joined IATA in January 2017 after more than a decade in the leadership team of Saudi Arabian Airlines where he successfully fulfilled the roles of Chief Financial Officer, Chief Information Officer and Senior Vice President for Transformation.

At IATA, Albakri has been an agent of change, transforming the Africa and Middle East regional team to better serve member needs and pioneering the work of IATA’s Digital Transformation Advisory Council.

“Muhammad is well prepared to guide the development of IATA’s commercial offerings, settlement services and digital leadership. In normal times, these are critical functions—even more so in the middle of an industry crisis,” said de Juniac.

Source: https://www.thisdaylive.com/index.php/2020/08/07/albakri-appointed-iata-senior-vp/

Dubai to Toronto again on Emirates A380

The iconic Emirates A380 will begin serving travelers on flights to Toronto starting 16 August. The airline has so far resumed Airbus A380 operations to Amsterdam, Cairo, Paris, London Heathrow and Guangzhou (8 August) – taking its A380 network to six cities. The Emirates A380 experience remains a favorite among travelers for its spacious and comfortable cabins and the airline will continue to gradually expand its deployment in line with market demand and operational approvals.

Customers can fly the Emirates A380 from Dubai to Toronto five times a week. Flights can be booked online or via travel agents. Emirates flight EK 241 will depart Dubai at 9:10 and arrive in Toronto at 15:05 local time. The return flight, EK 242 will depart Toronto at 21:45 and arrive in Dubai at 18:30 local time, the following day.

With safety as a priority, Emirates is gradually expanding its passenger services to 70 cities in August, returning to over 50% of its pre-pandemic destination network. Passengers travelling between the Americas, Europe, Africa, Middle East, and Asia Pacific can enjoy safe and convenient connections via Dubai. Customers from Emirates’ network can stop over or travel to Dubai as the city has re-opened for international business and leisure visitors.

COVID-19 PCR tests are mandatory for all inbound and transit passengers arriving to Dubai (and the UAE), including UAE citizens, residents and tourists, irrespective of the country they are coming from.

Source: https://www.eturbonews.com/578520/dubai-to-toronto-again-on-emirates-a380/

 

KATA partners with Dubai in readiness for travelers

The Kenya Association of Travel Agents (KATA) in partnership with Dubai Tourism hosted an interactive session with travel agents on 6th August 2020 with discussions around the Products and services available in Dubai for travel agents, updates on post-covid-19 measures, entry requirements, safety stamp, assured properties and procedures & Insights on growing your business to Dubai efficiently with DTCM tools.

Stella Ibiene Obinwa, Dubai Tourism, Director International Operations said that they were leveraging on the partnership with KATA to ensure that more Kenyans visit Dubai.

As of 2nd August, the UAE had conducted over 5.1 million tests with the percent of positive tests below 1% and is ranked 6th globally for Covid-19 testing. The safety and security measures adopted by Dubai’s authorities to safeguard the residents and visitors are among the stringent and sophisticated taken worldwide.

While giving her opening remarks Ms. Agnes Mucuha, CEO of KATA said, “As an Association we have benefited a lot from the partnership we’ve had with Dubai Tourism over the years. This webinar is definitely what our members need as the travel industry opens up and adaption to the new normal is a must”.

“If you want to grow your business, and make the most out of things that are free to you. The way to go is to be a registered member of KATA. There is a lot we do with KATA and there is a lot that KATA does for Dubai Tourism in terms of pushing out information. Of all the travel agent associations in Africa that we interact with KATA is by far one of the strongest.” Opined Ms. Stella Obinwa.

Also speaking at the webinar, KATA Board Chairman Mr. Mohammed Wanyoike thanked Dubai Tourism for the partnership and for organizing the platform for engagement and discussions around travel to UAE.

He acknowledged that Dubai is most likely to be busiest destination in Africa as the travel resumption takes place worldwide and “as KATA we are looking forward to harness this opportunity” he added.

Dubai re-opened on 7th July, welcoming travelers to the city with safety and health measures put in place.

Dubai is ready to welcome visitors and has regained its vibrant energy following the reopening of attractions, facilities and amenities including public and hotel beaches, shopping malls, restaurants, swimming pools, water parks and golf courses, as well as the resumption of popular activities like water sports and camping.

From 1st of August all tourists, residents and citizens, and transit must present a valid negative PCR test valid for 96 hours upon arrival. Travelers may test at any lab accredited by their health authority in their country and are not required to translate the test.

Dubai has positioned itself as the safest destination to travel.

The Ministry of Health Prevention, National Emergency Crisis and Disaster Management Authority and the Ministry of Interior of Dubai Implemented a national disinfection program in collaboration with relevant federal and local authorities. The ‘National Disinfection Programme’ entailed a complete 24-hour sterilization programme and social distancing as response to stop the spread of the virus.

Starting 4th April 2020, the programme included all public utilities, public transport and metro services and was completed on June 24, allowing free movement all day and night, subject to compliance to precautionary measures including wearing masks and social distancing.

KATA Chief Executive Officer commended Dubai Tourism for the great webinar and the relevant information disseminated across to the members.

“You have filled us with great knowledge and challenged us to reset our brains and to take maximum advantage of the educational materials that have been provided. You have also opened our eyes to see new opportunities for fostering partnerships and grow in the space of education tourism.” Said Ms. Mucuha while giving her closing remarks.

The Association, she further added, will be looking forward to many more engagements as agreed with Dubai Tourism on other topical issues and business opportunities for the membership.

By Eve Lucky Karitu

Kenya Association of Travel Agents

Dubai’s Emirates Airline is now flying to 70 destinations

Dubai’s Emirates Airline is now flying to 70 cities across the world, after launching two new flights.

The Dubai airline will be flying to Kuwait City from tomorrow (Wednesday August 5) and Lisbon from August 16.

This means Emirates is now flying to more than 50 percent of its pre-pandemic destinations

Flights to Kuwait City will operate daily, while flights to Lisbon will be three times a week. Both will be with the Emirates Boeing 777-300ER.

This month the airline has already resumed flights to destinations including the SeychellesStockholm, Prague and Sao Paulo. Later this month flights will resume to Boston (August 15).

Meanwhile Emirates has increased the frequency of its flights to Maldives, due to demand, up to six times a week from today (Tuesday August 4).

Emirates is to deploy its flagship Airbus A380 to Guangzhou from Saturday (August 8) and has also resumed A380 services to Amsterdam and Cairo this week, along with a second daily A380 flight to London Heathrow.

Emirates has strict safety measures and travel restrictions also remain in place. Travellers will only be accepted on flights if they comply with the eligibility and entry criteria requirements of their destination countries.

COVID-19 PCR tests are mandatory for all inbound and transit passengers arriving to Dubai (and the UAE), including UAE citizens, residents and tourists, irrespective of the country they are coming from. Meanwhile passengers travelling to select destinations will be required to take PCR test before travel.

Planning on travelling through Dubai Airport? Here’s everything you need to know right now.

Emirates has also committed to cover COVID-19 related medical expenses, free of cost, should passengers be diagnosed with COVID-19 during their travel while they are away from home.

This cover is immediately effective for customers flying on Emirates until October 31 2020 and is valid for 31 days from the moment they fly the first sector of their journey.

For more information for UAE residents returning to Dubai visit www.emirates.com/returntoDubai, for more information for tourists travelling to Dubai visit: www.emirates.com/flytoDubai.

Source: https://www.timeoutdubai.com/travel/445625-dubais-emirates-airline-is-now-flying-to-70-destinations

International flights to and from many African nations resume following COVID‐19 halt

Kenya is one of several African countries that are recommencing international flights suspended since March because of the COVID‐19 pandemic.

The country’s international airline, Kenya Airways, has resumed flights to 30 different destinations.

The airline is expecting demand to remain below 50% of its pre‐pandemic capacity, but it has said that it has the flexibility to increase the number of routes and the frequency of flights dependent on demand.

Other African countries enjoying a resumption of flights include Mali, Rwanda, Senegal, Ivory Coast, Niger, Chad, Burkina Faso and Togo.

In Ivory Coast, a health declaration document form must be completed before travelling. In the case of Togo, all travelers will be subject to a COVID 19 test on arrival and another on departure, except for those merely in transit through the country.

Meanwhile, Tanzania banned Kenya Airways from entering the country as Kenya’s services airlines resumed on Saturday. It’s the latest move in a row triggered by Tanzania’s controversial handling of the coronavirus pandemic.

Tanzania said Kenya Airways flights were being banned “on a reciprocal basis” after Kenya decided against including Tanzania in a list of countries whose passengers would be permitted to enter Kenya with the resumption of commercial flights.

Kenya Airways Chief Executive Allan Kilavuka said he was “saddened” by the letter and hoped the situation would soon be resolved.

Tanzania’s approach to the COVID 19 crisis has been controversial; they began reopening the country two months ago.

Tanzanian President John Magufuli’s refusal to impose lockdowns or social distancing measures, as well as to prevent the release of statistics regarding infection since late April has caused concern among Tanzania’s neighbors and the World Health Organization. President Magufuli declared Tanzania free of coronavirus in June.

Source: https://www.africanews.com/2020/08/03/international-flights-to-and-from-many-african-nations-resume-following-covid-19-halt//

Turkish Airlines to restore South Africa, Kenya, Egypt routes in August

Turkish Airlines will restart South Africa, Russia, Kuwait, and India services this month, according to transportation minister Adil Karaismailoglu.

Other destinations to be added include Tunisia, Algeria, Egypt, Kyrgyzstan, Iraq, Kenya, and Uzbekistan, depending on the severity of the coronavirus pandemic.

The country is planning to boost the number of international flights to more than 40 countries.

Both Turkey and Russia last week announced that reciprocal flights would resume on August 1 after a four-month break. Initially, flights will restart between three Russian airports and Turkish airports in Istanbul and Ankara.

“Scheduled and charter flights from Moscow, St. Petersburg and Rostov-on-Don in Russia to Antalya, Bodrum and Dalaman in Turkey will also restart on August 10,” he added.

Turkish Airlines is in talks with Russian authorities to fly from Kazan and Sochi as well, as per media reports.

After attracting a record number of visitors with 51.9 million people in 2019, Turkey was targeting a total of 60 million tourists in 2020 before the coronavirus crisis. The country’s tourism revenues hit $34.5 billion in 2019, a new record high.

However, Turkey welcomed 4.5 million foreign visitors in the first half of 2020, down 75 percent year-on-year, according to the data from culture and tourism ministry.

Turkey has resumed international flights to four countries, including India, from August 1, the country’s Transport and Infrastructure Minister Adil Karaismailoglu announced in a written statement this week. The other countries are Russia, Kuwait and South Africa. In the pipeline are plans to restart flight operations with Egypt, Tunisia, Algeria, Kyrgyzstan, Iraq, Kenya and Uzbekistan.

International flight operations in Turkey were suspended on July 11.

Source: https://www.logupdateafrica.com/turkish-airlines-to-restore-south-africa-kenya-egypt-routes-in-august-aviation

 

Qatar Airways resumes passenger flights to Kigali, Rwanda, and Nairobi, Kenya

Qatar Airways announces the resumption of services to Jomo Kenyatta International Airport (NBO) – Nairobi, Kenya with 14 weekly flights and to Kigali International Airport (KGL) – Kigali, Rwanda with three weekly flights. With the addition of Kigali and Nairobi, the airline now operates 33 weekly flights to eight destinations in Africa including Addis Ababa, Dar es Salaam, Djibouti, Kilimanjaro, Zanzibar and Tunis.

Being one of the largest passenger carriers during the pandemic with a promised steady schedule that never dropped below 30 destinations, the national carrier to the State of Qatar connects many passengers seamlessly via its award-winning home and hub, Hamad International Airport (HIA) to key destinations via its rapidly expanding network including Europe, Americas, Asia and Pacific via Doha.

Qatar Airways has a strong relationship with Kenya and Rwanda with almost 15 years of operations to Nairobi and eight years of operations to Kigali. The airline began scheduled services from Nairobi on 15 November 2005 followed by Kigali on 24 March 2012 and Mombasa on 9 December 2018.

Qatar Airways Group Chief Executive Mr Akbar Al Baker said: “We are delighted to resume flights to Nairobi and Kigali, totalling our flights to 33 weekly flights into Africa with eight destinations. Qatar Airways continues to maintain an expanding schedule with now more than 500 weekly flights to over 75 destinations. During the pandemic, Qatar Airways have become the largest global carrier to maintain its schedule in taking people home with the highest safety measures. Our wide network of flights during these challenging times has ensured we have kept up to date with the latest in international airport procedures. We also implemented the most advanced safety & hygiene measures onboard our aircraft and, in our home, and hub at Hamad International Airport which was recently voted the Best Airport in the Middle East for the sixth year in a row.

“Qatar Airways has been the most reliable airline during the pandemic and will continue to ensure its promised five-star service and hospitality is delivered across its network. We hope to see many people come visit Kenya and Rwanda and explore the world’s stunning wildlife and more.”

During COVID-19 pandemic, Qatar Airways Cargo continued operating its scheduled twice-weekly with A330 freighters and four times weekly with Boeing 777 freighters to Nairobi along with freight charters. These flights provided much-required capacity, supporting exporters and importers and bringing in essential medical supplies. With the resumption of passenger flights to Nairobi, the cargo carrier will operate 20 flights in total, offering more than 700 tonnes of cargo capacity each week, each way.

Qatar Airways has further enhanced its onboard safety measures for passengers and cabin crew. The airline has introduced Personal Protective Equipment (PPE) for cabin crew which includes gloves, face masks, safety glasses and a new protective gown that is fitted over their uniforms. A modified service that reduces interactions between passengers and the crew inflight has also been introduced.

Onboard, all Qatar Airways passengers are now provided with a complimentary protective kit. Inside a ziplock pouch, they will find a single-use surgical face mask, large disposable powder-free gloves and an alcohol-based hand sanitiser gel. The airline has also introduced disposable face shields for adults and children. Passengers travelling from Hamad International Airport (HIA) will receive their face shields at the check-in counters, whereas at other destinations, the face shields will be distributed at the boarding gates.

To ensure travellers can plan their travel with peace of mind, the airline has extended its booking policies to offer even more choice to its passengers. The airline will allow unlimited date changes, and passengers can change their destination as often as they need if it is within 5,000 miles of the original destination. The airline will not charge any fare differences for travel completed before 31 December 2020, after which fare rules will apply. All tickets booked for travel up to 31 December 2020 will be valid for two years from the date of issuance. For full terms and conditions visit www.qatarairways.com/RelyOnUs.

Source: https://www.aviation24.be/airlines/qatar-airways/qatar-airways-resumes-flights-to-kigali-rwanda-and-nairobi-kenya/

 

KQ’s survival strategy as global travel resumes

National carrier Kenya Airways has resumed domestic and international flights after being grounded for almost four months.

Martin Mwita spoke to KQ chairman Michael Joseph on the resumption, challenges, nationalisation and the future of the airline.

The Star: How does it feel to be back in the skies?

Michael Joseph: It is wonderful, we need to fly. There are two reasons why we need to fly. One is obviously revenue. When a plane sits on the ground and does nothing, it costs a lot of money because it requires to be maintained even if it does not fly. The other thing is we need to restore the confidence in Kenya Airways to have KQ survive so it can provide the strategic services we need.

Nairobi is the natural place to put your headquarters for Africa, the natural place to invest. Kenya Airways will provide the connectivity needed to encourage people to put their investment here. If you look at Dubai, years ago it was nothing. Look at it to today and the only reason why Dubai is the way it is is because of Emirates. In Rwanda, President Kagame is putting a lot of money into RwandAir and the airport, so we need to do everything for Kenya Airways to survive. 

After resuming domestic flights and now international, how is KQ doing?

It is difficult to say. We are flying two times a day to Mombasa, once to Kisumu, the average load factor is 60 per cent, it’s not great. But we have to get confidence during this pandemic because many people are afraid to fly, even on other international airlines. It is a wait-and-see what will be the load factor.

What is your resumption plan for international flights?

Right now, we are going to fly to London three or four times a week, Amsterdam, Paris three times a week. When we go back to New York, we will probably fly once a week, Guangzhou maybe twice a week, we won’t go daily. We will manage and monitor to see what the load factor is like.

What informed the choice on routes?

Projected demand. It is complex when you structure a route. For example, when you fly from here (Nairobi) to Mumbai, probably it doesn’t justify the cost of that flight, but people might be coming from Lagos and then going to Mumbai and that justifies the cost of the flight. It is a very complex thing when we try to project future bookings.

We have, however, started taking bookings, so we are trying to see the load. As it increases, we shall put on more flights. Coming from Europe, there should be a good number of people coming here for the migration, Christmas season and like that. Then for New York during winter, we will see people wanting to come. We have gotten some good bookings from November, but we have to project and see what the future demand looks like based on forward bookings.

How do you give people confidence they will not catch Covid-19 on a KQ plane?

 

You do the best you can. We have very special efforts to ensure safety on the plane, including specialised air filters. People must wear masks all the time and crew will be in PPEs, among other measures.

When do you expect to resume direct flights between Nairobi and New York?

We are looking at October. I think we will go once a week and then we will start to build up. If we see the demand, we will go two times or three times a week. I don’t know when we will go back to daily flights to the US because of the pandemic.

There are concerns that KQ risks being short of pilots due to redundancy. What is your take?

Right now, there is no shortage of pilots for sure. There will probably be no shortage of pilots until the industry picks up. No airline economist is predicting the return to 2019 levels until 2023 at the earliest.

How prepared are you to resume flights? There is a concern that most of those sent home are those who had taken recurrent training.

First of all, no pilot has been sent home except maybe those who were on probation. On readiness, the way the regulations work, all the aircrafts are fully maintained even if they are on the ground. Secondly, we have been doing a lot of evacuation and freight flights, so most of the Boeing 787 Dreamliner and Boeing 737 pilots are flying freight or evacuation flights, so we are good to go.

 

How do you plan to deal with grounded planes, looking at cost factor and leases?

That’s a good question. What most airlines around the world are doing is returning aircrafts on leaseholds. To return an aircraft costs loads of money, the money we don’t have. We have to look for some deal. It can’t be the normal penalties that they levy when you return an aircraft before your lease expires. We have to negotiate so they don’t levy penalties now, we will commit to a working plan.

Some aircraft, we can just keep because it won’t cost us anything. We are going to go down from 38 aircraft to 24 aircraft. We will try to do something with the balance of our aircraft, maybe we will return them or do something else. We have nine 787s (Boeing). We will probably not return any one of them, but we will park them and use them as backup, but we have to manage this process so we can start to see the light at the end of the tunnel.

Management has been criticized on layoffs at a time when nationalization is coming and expected to create jobs.

Criticism will be there when you lay off people. Nobody wants to be laid off and nobody wants to do layoffs. It is really tough to let people go. Everybody can criticize you, but what do you do? Things are difficult for airlines across the globe and KQ is not an exception.

How are you doing the layoffs?

What we have said is for people who are on contract, we don’t renew their contracts, and that is not unusual in contracts. People who are close to retirement, like some of our pilots are approaching the retirement age when they are not allowed to fly, we say if you have two years to go, we will give you your salary and offer you early retirement. There are people we took from third-party providers, some on probation. We have to do it.

How far will the redundancy process go and how many will be affected?

We will finish by the end of September as long as we don’t have another pandemic or obstacles. We are 4,300 people in Kenya Airways at the moment. I don’t know what the eventual number will be, but it is difficult. It is a tough thing to do. 

KQ is going back into nationalization, something that has failed before. How differently can it be done to get it right?

Good question. If I look at Kenya Airways before, we were competing with Middle East carriers, which are owned and subsidized by the state. Same for Ethiopian Airlines. They run the airports, catering, duty free, all these are in one holding company. That ability to put these three or four things together makes you very strong, and that is what I am trying to do with Kenya Airways.

Our idea is to emulate what Ethiopian Airlines has done, what Emirates has done, what Turkish Airlines has done, Qatar, you name it. Integrate airport, duty free and other services. If you look at JKIA, duty free is making a lot of money, ground handling is making a lot of money, if I put those two things together and put those balance sheets together, we can leverage the balance sheet not only to rebuild the airport but also to expand the airline. That is the reason why we are doing it and we can only do it by putting them into one holding company that is owned by the state.

How do you plan to deal with shareholders in the nationalisation process?

The government currently owns nearly 50 per cent of Kenya Airways, 38 per cent is owned by the banks and seven per cent is owned by KLM. Minority shareholders own the balance. In the current financial year, we have put out some money for buying out the minority shareholders, individual shareholders; these are the people who bought shares in Kenya Airways. We have no money to buy out the banks and KLM, but our intention is to give them some kind of arrangement, that they will get their money in the next five to eight years.

Any fears on nationalisation?

Look at SAA (South African Airways), it was doing very well until the government started interfering with the running of the airline and putting people in charge who knew nothing about the airline. They used the airline and they ran it down. This is the fear we have and a legitimate fear. If we nationalise Kenya Airways and we put in into this aviation-holding corporation, it is state-owned. We could run it down or grow, but if you look at the Aviation Bill, we have some safeguards in there to try and prevent that.

How best can KQ stand competition from other airlines?

First is by reducing our operating cost. We cannot compete with, say, Ethiopian Airlines and these other guys on a level playing ground because our cost of operation is high. Our average cost per kilometre, for example, compared to Ethiopian Airlines is much higher. It costs less money to fly to London by Ethiopian. Their pilots are paid 50 per cent of what our pilots are paid, the fuel is subsidised, we pay railway tax on our fuel and so forth.

Becoming a state corporation, I am hoping that we can bring down the cost of operation. Even if we cannot bring down the cost of salaries, we can start to look at other costs and then  leverage the balance sheet.

Pilots have argued that if they are brought on board, you could actually expand the airline.

It has been their mantra since I have been there. They say ‘we could do a better job than you guys’, but has any of them applied for the job of the CEO or chief commercial officer? I would love them to come to the board or to send a representative to the board to really understand our business.

This is a standard language they use because that is what the international pilots’ association tells them to say as union officials on how to deal with management. There are some good things they have said, like making Nairobi a business hub, absolutely 100 per cent, I agree. But when we have nobody flying, no possibility of restoration of the normal number of passengers by 2024, you want to expand? With what? How are you going to meet the costs? We can’t even pay salaries.

You have been accused of using British Airways, a competitor, to fly on routes when you could use KQ at a cheaper cost.

When I joined the board, we were in the middle of a financial restructuring. We hired Mckinsey and other financial consultants, and we were going into restructuring of the debt of Kenya Airways. That required a lot of consultation. I was still living and working in London and I had to come here a couple of times for meetings. I could only come for a day so I would take a Kenya Airways flight at around 5 from Heathrow, come for the meeting and then go back with British Airways. That is the only way you can come for a day, come with KQ and go back with BA, and vice versa.

I answered the audit questions about why did you fly with British Airways. It is just a normal business trip but the union took it as if I am spending thousands travelling with BA. Again when you fly with KQ for free, it is on availability basis, so when it is full, you can’t fly. You can’t leave a fee-paying passenger and fly the chairman for free. When there was no seat in KQ, I flew British Airways and there were arrangements for cheaper tickets.

Former CEO Sebastian Mikosz and yourself were accused of increasing your salaries without approval. Can you explain?

When I became the chairman, I said to the minister look, this is going to take a lot of my time because a lot needed to be done. So I said, I need to be paid more. KQ was going through a financial restructuring, we had just hired a new CEO, we also had to decide what are we going to do with the airline.

When we went through the Public-Private-Partnership proposal, it became very intense and I was spending a lot of time with Kenya Airways. It’s about the amount of effort that I had to devote to Kenya Airways as a person, not as a chairman who appears only four times a year. So I was paid not a sitting allowance but a fee. It was agreed and the following year the finance people accrued for that amount. It was shown in the balance sheet as salary paid to me.

However, the board never approved it, so it had had to be reversed. I paid that money back. Currently, none of us is being paid since the pandemic. I haven’t been paid since February, the CEO has taken a pay cut because we volunteered to help address the situation. I have never been dishonest. I am not that kind of person. I am very proud of my reputation.

When do you think a nationalised KQ will return to profitability, and can it be privatised again?

This is a difficult question to answer. My view is in three or four years’ time, we will be profitable if we go through what we are doing now and things work out as we predict. To re-privatise would depend on how the world looks like. But in my view, we have to get back our market share, we have to fight for our market share. Ethiopian Airlines has a grand design to be Africa’s airline. It’s not going to be easy, but we have to fight.

Do you feel KQ is getting enough support from the government?

Yes, and particularly from the President. We are getting good support. I can’t wish for better.

How have you addressed the safety alert on your Boeing 737s issued by the US Federal Aviation Authority?

There is a safety alert almost every day. This is not the first alert on the 737s. We always take the safety alerts seriously and we do what we are required to do. This happens all the time. We check our planes regularly so it’s not an issue. Safety is always number one in an airline and KQ is no exception.

How do you compare leading KQ and leading Safaricom?

Different challenges. One is an extremely profitable company, easy to run and one is not. When you don’t have money, it is very difficult. Even to become successful, you need money. If we (KQ) are going to compete, we have to offer better service, better in-flight service, better meals, better uniform, better seats, all these will cost money.

Parting shot?

I took up this job because I believe Kenya Airways is a strategic asset of this country. As a standalone business, we are too small to compete, we have 38 aircraft, Ethiopian has 120. It’s the national thing that we have to do. It’s not about pride, it’s something we have to do, we have to put Nairobi on the map.

Nobody wants to fly to a destination via other airports, they want to fly directly. An airline is one thing that will attract people to come here. The government has set up an office to attract businesses, we have to have the same objective. We should protect KQ and make it work. 

Source: https://www.the-star.co.ke/news/big-read/2020-08-04-kqs-survival-strategy-as-global-travel-resumes/