How Fintech is Reinventing Travel Payments.

The travel payments industry is undergoing a profound transformation, driven by the rise of fintech, evolving consumer preferences and changing market dynamics.

A 2023 white paper by Mastercard, titled “Embracing a virtual future of B2B travel payments”, explores these transformations and their impact on the sector.

The paper discusses how the pandemic has triggered a reevaluation of business-to-business (B2B) payment practices, the growing prominence of the merchant of record (MoR) payment model, and the increasing adoption of virtual cards.

Traditionally, travel agencies mainly served as intermediaries, transmitting consumer payment details to various service providers in an individual’s travel itinerary. However, the expanding network of suppliers has made this “pass-through” approach riskier and more cumbersome for both agencies and consumers.

To address these risks, an increasing number of travel agencies are shifting to the MoR model where the travel agency collects customer payments for all booked services, authorizes transactions, and then disburses payments to the specific suppliers associated with the booking.

The MoR model not only addresses these challenges but also opens up new opportunities for suppliers, allowing agencies to offer consumers new payment options such as installment methods and buy now, pay later (BNPL) arrangements.

The report notes a significant migration from the pass-through model to the MoR model, with travel agents acting as MoRs posting a compound annual growth rate (CAGR) of 43% from 2020 to 2022, a growth rate that’s more than double than that of the overall online travel agency market of 20% CAGR.

Another trend outlined by the Mastercard white paper is the digitalization of business-to-business (B2B) travel payments, with virtual cards in particular emerging as an appealing payment option. Virtual cards are essentially digital versions of physical payment cards. Virtual card numbers are digitally generated, PCI-compliant and single-use card numbers that are accepted everywhere traditional payment cards are.

According to Mastercard, virtual cards provide a unique, traceable link between booking and associated payments to third-party suppliers. They allow travel agencies and suppliers to easily track and reconcile payments, while offering benefits such as flexible pricing, financing options and card payment guarantees.

This results in a more streamlined payment experience for travel agencies and their customers, as well as travel suppliers. Transactions are also more secure, with Mastercard data revealing that the risk of fraud is 30 times lower when using virtual cards compared to traditional payment cards.

A 2023 infographic produced by Up in the Air, a travel payment consultancy from the Netherlands, depicts a dynamic and diversified B2B travel payment landscape.

This landscape comprises popular payment card schemes such as Visa, Mastercard and American Express; virtual card issuers such as banks; payment technology companies such as Stripe, Nium and Airwallex; as well as travel payment pure players such as Outpayce, a B2B payments business serving the travel industry, Mystifly, an airfare distribution and payments settlement marketplace platform, and iOL Pay, an automated payment acceptance solutions for the hospitality industry.

 Source: Fintech News.

Kenya now welcomes open skies policy to push tourism.

The Moi International Airport (MIA) is the first airport in the country that the government has opened up to international flights in a bid to push up tourism.

Cabinet Secretary for Transport Kipchumba Murkomen said in Mombasa that the airport is the first to be opened up as the government aims to fully implement an open skies policy for commercial flights.

Open skies are policies that governments use to give international airlines easy access to their airports. They are considered pro-consumer, pro-competition and pro-growth.

For years, tourism players especially at the coast have been pushing for these policies in order to attract more tourists.

Last Wednesday, MIA received a Fly Dubai airline flight which landed with 119 passengers; the first after adoption of the policy.

A Boeing 737 Max -800 touched down in Mombasa and was welcomed by Mombasa Governor Abdulswamad Shariff Nassir and Murkomen.

“We have tirelessly requested the government to consider an open sky policy as we sought to grow tourism numbers and boost our economy,” Nassir said.

He said that they are now confident that more international flights will land in Mombasa. Murkomen said that approvals were made to allow Fly Dubai to start direct flights to Mombasa after the airline made a very compelling case.

“They have connections to Eastern Europe market and have a global network that can increase numbers,” Murkomen noted.

Already, 10 international airlines are said to be eyeing the Mombasa route. Kenya Airports Authority (KAA) acting managing director Henry Ogoye said the event marks a significant milestone in the ever-changing aviation landscape in the country.

“The arrival of Fly Dubai to Moi International Airport not only enhances connectivity between our nations but also is a testament of the interest United Arab Emirates has in us, “he said.

Skal Kenya Coast President Janet Chamia said that the airlines arrival is very exciting.

“It marks a milestone for tourism,” Chamia said. Fly Dubai Senior Vice President Commercial Operations Sudhir Sreedharan said that the new service was his airlines twelfth in Africa where it now flies to 11 different nations.

Fly Dubai becomes the first national carrier to operate direct flights from Dubai to the coastal city in Kenya.

“Fly Dubai’s inaugural flight to Mombasa reflects our commitment to further strengthening our network in Africa and to providing our passengers with more options for convenient travel to one of East Africa’s most attractive destinations, “Sreedharan said.

Kenya Coast Tourist Association CEO Julius Owino and Patrick Kamanga, chairman of Kenya Association of Travel Agents Coast said that it’s been a long struggle to have Fly Dubai on the Mombasa route

“All its outbound flights have been filled by travel agents and already this shows it popularity,” Kamanga said.

Owino said that they are delighted with the prospects the new air service presents at a time when Kenyan tourism is on full path to recovery.

“We have seen huge numbers. This year looks very promising with air, sea and land arrivals looking good,” Owino said.

Denis Gwaro, General Manager of Plaza Beach Hotel in Mombasa said that it is their hope that apart from Fly Dubai, airlines like Turkish, Rwandair, Air Tanzania and a host of other low cost carriers from South Africa could soon be landing in Mombasa.

“For us, this is the best thing to ever have happened in the early part of the year. In fact, it presents better things to come not only for coastal tourism but the entire country as a whole, “Gwaro said

Fly Dubai has been steadying itself and has built a network of 123 destinations in 54 countries served by a young fleet of 84 Boeing 737 aircraft.

The airline has added Cairo, Krabi, Milan, Pattaya and Poznań to its network in 2023 and will start its daily services to Langkawi and Penang in Malaysia on 10 February 2024.

Fly Dubai’s network in Africa includes Addis Ababa, Alexandria, Asmara, Cairo, Dar es Salaam, Djibouti, Entebbe, Hargeisa, Juba, Mogadishu, Mombasa and Zanzibar.

 Flights to Moi International Airport will operate four times a week on Mondays, Wednesdays, Fridays and Sundays from Terminal 3, Dubai International (DXB). Emirates will codeshare on this route, offering passengers more options for connections through Dubai’s international aviation hub.

Source: Standard Media.

Diversity, authenticity, value for money: Report reinforces Dubai’s position as a global gastronomy hub.

Dubai, United Arab Emirates: A new report released by the Dubai Department of Economy and Tourism (DET) has underlined the city’s growing status as a leading destination in the global culinary landscape, with a 61 per cent surge in the amount residents are dining out, and a strong increase in satisfaction with the food scene’s value for money among international visitors.

The second annual Dubai Gastronomy Industry Report was shared with key stakeholders from across the gastronomy ecosystem – including restaurateurs, hoteliers, and key industry specialists. The report supports the industry by providing statistics and trends that both recognise progress and identify key growth areas for the coming year.

Dubai’s gastronomy excellence aligns seamlessly with the city’s broader economic vision outlined in the Dubai Economic Agenda 2033 (D33), which aims to double the size of Dubai’s economy in the decade up to 2033 and solidify its position among the world’s top three cities for business and leisure. The findings of the report also reflect wider recognition of the city’s gastronomic landscape, with accolades including two restaurants being named in The World’s 50 Best Restaurants, 15 in the MENA 50 Best Restaurants and the inclusion of 90 Dubai restaurants in the MICHELIN Guide Dubai 2023, up from 69 in the previous year’s edition.

With Dubai’s dynamic ecosystem currently boasting more than 13,000 restaurants and cafés, key takeaways from the report, which feature surveys of both residents and international visitors, include:

Growing enthusiasm for Dubai’s culinary ecosystem, with 69 per cent of UAE residents rating the city as the world’s leading gastronomy hub;

Dubai scoring second overall worldwide in terms of Restaurant Density;

A 61 per cent year-on-year increase in the average number of dining out occasions compared to 2022, up from 1.8 times per week to 2.9 times per week;

A substantial increase in the proportion of international visitors satisfied with Dubai’s value for money when dining out, up from 54 per cent in 2022 to 66 per cent in 2023;

Dubai Marina, Oud Metha and Downtown Dubai scoring best among Dubai’s dining destinations.

Ahmed Al Khaja, CEO of Dubai Festivals and Retail Establishment (DFRE) commented: “As Dubai continues to build on its reputation as a world-class gastronomic destination, there are immense opportunities waiting to be harnessed for progressive and innovative stakeholders. This report explores the vibrant culinary tapestry of Dubai and provides first-hand insights into the city’s remarkable gastronomic journey. The rapid expansion of the industry, and the global recognition it has earned, is a clear indication that the emirate’s gastronomic evolution is not just a trend, but a cultural phenomenon underpinned by the myriad of cuisines and flavours drawn from the cultures of over 200 nationalities that call the city their home.

“We would like to express our gratitude to all those who contribute to shaping the Dubai dining scene – their passion and dedication have been instrumental in making Dubai a global gastronomic hub.”

The report also highlights the significance of three of Dubai’s most popular restaurants attaining MICHELIN green stars, evidencing the city’s ongoing commitment to sustainability, with future plans to further align with UAE Net Zero 2050, the national campaign to achieve net-zero emissions by 2050.

Looking ahead, the 11th annual Dubai Food Festival (DFF) is scheduled to take place from 19 April to 12 May. DFF 2024 will showcase the city’s ever-evolving culinary prowess, as well as the richness, diversity, and innovation of Dubai’s culinary scene through an enhanced lineup of events and activities. The festival will celebrate locally originated concepts, and Emirati and international cuisines, while highlighting Dubai’s capacity to respond to worldwide trends. DFF 2024 will also recognise the contributions of chefs, culinary trailblazers, gourmet influencers, and tastemakers who consistently inspire Dubai’s culinary landscape.

The Dubai Gastronomy Industry Report is produced by the Dubai Festivals and Retail Establishment (DFRE) in line with Dubai’s objective to further its position as a global gastronomy hub. It delivers a calendar of culinary events that highlight the city’s year-round abundance of diverse, authentic, value-based, and experiential culinary experiences.

 Source: Zawya.  

Kenya Elected to Chair UNWTO For Three Years.

NAIROBI, Kenya, Jan 25- Kenya has been elected to chair the United Nations World Tourism Organization’s (UNWTO) Committee on Tourism and Competitiveness, solidifying its position as a leader in the global tourism industry.

The announcement was made at the first meeting of the committee held at the UNWTO headquarters in Madrid, Spain.

The Ministry of Tourism said that Kenya won the position after two rounds of voting, defeating strong bids from Thailand and Malta.

Tourism Cabinet Secretary Alfred Mutua termed the election an historic moment for the country as it puts Kenya in a position of decision making in matters that affect tourism across the globe.

“This vote demonstrates the confidence that UNWTO member states have in Kenya’s leadership and ability to steer the organization’s agenda on tourism competitiveness,” Mutua said.

He added that tourism is a key pillar of the Kenyan economy, noting that chairing the committee would allow synergy with other UNWTO members in shaping policy, building partnerships, and promoting best practices in tourism.

“We shall champion initiatives that will help in the creation of jobs, protecting of the planet as well as driving inclusive growth that can be felt and be impactful within communities,” he added.

UNWTO Executive Director, Special Representative to the United Nations in Geneva, Zoritsa Urosevic congratulated Kenya on securing the chair position acknowledging Kenya’s achievements in the tourism sector.

She expressed confidence in the country’s ability to lead the Committee effectively.

“I commend Kenya for its commitment to sustainable tourism development. As one of the important tourism economies in Africa, Kenya will bring valuable experience and expertise that will lead the Committee’s work in enhancing competitiveness and responsible tourism across UNWTO member countries,” Urosevic said.

The Tourism Ministry had appointed Wausi Walya, Public Relations and Corporate Communications Manager at the Kenya Tourism Board to lead the pitch for Kenya as the designated technical officer and appointed focal person for the technical committee by the Ministry. 

Kenya’s successful bid was anchored on its tourism competitiveness pillars such as destination marketing, diversified tourism offerings, sustainable tourism practices, cultural and natural heritage, training, and skills development programs as well as innovations and technology among other strengths.

The country’s infrastructural development strides in areas of roads, airports and hospitality facilities were also highlighted as key enablers which have unlocked growth potential for the sector.

The UNWTO Committee on Tourism and Competitiveness acts as a platform for cooperation between Member States to enhance the competitiveness of their offering, promote innovation, and ensure the sustainable growth of tourism worldwide.

Kenya takes over the chairmanship for three years and will hold the position between 2024 and 2027.

Source: Capital Fm.

Nigeria: Airlines’ Trapped Funds – Pressure Mounts Despite U.S.$61 Million Release.

Lagos — There’s a mounting pressure on the federal government to make significant releases to clear the foreign airlines’ trapped funds amidst their threat to exit Nigeria.

This is despite the release of $61.4m by the Central Bank of Nigeria (CBN) last week as part of efforts to clear outstanding liabilities and bolster the foreign exchange market.

While there’s no updated data on the foreign airlines’ funds trapped in Nigeria, our correspondent reports that the money was $793m as of December 2023.

According to data from the International Air Transport Association (IATA), Nigeria accounted for a substantial part of airlines’ trapped funds globally.

The foreign airlines said the funds keep mounting hence the $61.4m was too infinitesimal to cover anything.

A foreign airline representative who spoke with our correspondent in confidence said the trapped funds hinder the operations of their airlines.

“We all know what the margin is for airlines. If your funds are trapped to that level, how do you fund your operations? From loans or what? You can fund from other locations for how long? If every nation holds back funds, will there be international flights?

Foreign airlines mull cut of Nigerian operations.

Amidst the raging controversy over dollar settlement, airlines are said to be considering the option of reducing or suspending their operations outright.

It was learnt that despite the substantial resolution of diplomatic issues with the United Arab Emirates (UAE), the non-payment of Emirates Airlines’ trapped funds is responsible for the delay in resumption of flights to Nigeria.

“The airline is yet to see sufficient commitment of the Nigerian government to clear Emirates trapped funds which is the major reason for the airline’s suspension of operations in the first place,” the source said.

It would be recalled that Emirates suspended all flights to Nigeria on September 1, 2022 and despite two different visits of President Bola Tinubu to the UAE and follow-up visits by the Minister of Aviation, Festus Keyamo, the airline is yet to agree on resuming flights to Nigeria. “Yes, the trapped funds issue seems deadlocked,” said a source.

Similarly, other airlines are increasingly restless over their trapped funds, threatening to call it quits in Nigeria as the funds keep increasing.

“It is not a fair competition. My airline flies to Nigeria and our revenue is trapped. A Nigerian airline flies to our base country and they get their monies. Where is the fair competition?,” another foreign airline representative said. Aviation analyst, Group Capt. John Ojikutu, said aviation agencies would lose 80 per cent of their revenues if foreign airlines should leave in protest.

He said, “80% of our earnings in commercial aviation will be gone if the foreign airlines carry out their threats to withdraw their operations in Nigeria.

“Whoever knows Keyamo should tell him now. Whoever knows Tinubu should tell him now too to tell Keyamo to find out what happened to the forex earnings ($2.5bn) that the Nigeria Aviation service providers collected from the foreign airlines annually? This is not a joking matter like the palliatives and the subsidies.”

The General Secretary of the Aviation Roundtable and Safety Initiative (ART), Mr Olumide Ohunayo, decried a situation where foreign airlines pay for services in Nigeria in dollars, yet they cannot get dollars to repatriate their funds.

According to him, if the foreign airlines should leave as being threatened, Nigerian airlines cannot fill the vacuum.

More so he advised that Nigeria should take advantage of the reciprocity in the Bilateral Air Service Agreement (BASA) to begin to operate some of those routes operated by foreign airlines.

He said, “The truth is that our airlines cannot fill the vacuum, that’s almost impossible, as much as I would not advocate for us to increase their frequencies, I think it’s time for us to start using those frequencies that are ours by virtue of the reciprocity in the bilateral service agreement we have with different counties.

Source: All Africa.

Somalia denies airspace to Ethiopian Airlines plane.

An Ethiopian Airlines flight was Wednesday denied access to Somalia airspace after Mogadishu authorities said it lacked proper permission.

The aircraft reported to be carrying a high-level Ethiopian delegation, was said to have been heading to Hargeisa, the capital of the breakaway Somaliland.

Somalia civil aviation said it ordered the return of the Ethiopian flight for lacking necessary clearance to use Somali airspace.

“Today, the Somali Civil Aviation Authority took action to turn back an Ethiopian Airlines plane, Dash 8-Q400, flight number ET8372, from Somali airspace as it was found to be unauthorised. Adhering to international air rules and our rules, flights must obtain proper permission before entering airspace”, said the agency.

The development comes amid a diplomatic row between Somalia and Ethiopia after Addis Ababa signed a memorandum of understanding to secure its access to the Red Sea with the separatist Somaliland.

 Source: The East African.  

Reduce airfares to boost regional tourism, Kenya and Uganda told.

The Kenyan and Ugandan governments have been urged to cut travel barriers, especially air transport, to boost tourism of the two nations.

Uganda Consul General to Kenya Paul Mukumbya said there are a lot of improvements in travel policies between the two countries.

“Right now, a Kenyan can travel to Uganda using a national identity card and a Ugandan can travel to Kenya on just a national ID. That is a very good policy that facilitates travel between the two countries,” he said.

However, despite having the existing policy documents, Mukumbya said there are still a few challenges, especially the cost of air travel.

“You can imagine it is cheaper to travel from Mombasa or Entebbe to Dubai than to travel from Uganda to Kenya, and that is why the two governments need to do more in terms of reduction on taxes on air travel,” he said.

The consul said making regional travel operate like domestic flights will cut cost and grow the number of regional tourists.

Mukumbya said people need to begin looking at air travel not as a luxury, but as a necessity.

“The two governments need to work towards making air travel much more affordable. This will facilitate much more travel within the region,” he said.

This came after the Kenya Coast tourism stakeholders formed an initiative to work with their counterparts in Uganda to improve the sector.

Partnership between the two nations started in 2022 when the first Uganda-Kenya Coast Tourism Conference and Fam Trip took place in Mombasa. Mukumbya said the Kenyan Coast has a number of tourism products, including beaches, Fort Jesus, Vasco Da Gama Pillar in Malindi, and others not found in Uganda.

In Uganda, he said, they have completely different products, including mountain gorillas, chimpanzees and adventure tourism in River Nile.

“We also have the Kampala nightlife, a very interesting product because we are the capital city of nightlife in East Africa, if not in Africa. The products are different and that is why we can work together to promote these products because they can complement one another,” he said.

Mukumbya said Kenya is Uganda’s number one source market for tourists and more Ugandans visit Kenya because it is the number two Kenya’s source market for tourists after the US.

The partnership also intends to give an opportunity to international tourists visiting the two nations to explore and have the experience of the products from both sides on the same itinerary.

“The East African Community has been talking about promoting East Africa as a single tourist destination, but for us, we are going ahead now to practically promote Uganda and Kenya as one tourism destination. And this, we think, is working because there is a lot of interest,” Mukumbya said.

He said they are also working with the private sector, including the Kenya Association of Tour Operators, the Kenya Association of Hotel Keepers and Caterers, the Kenya Coastal Tourism Association and the Kenya Association of Travel Agents.

Kenya Association of Hotel Keepers and Caterers executive officer Sam Ikwaye said the partnership is important because travel is changing and their over-reliance on the international market is good, but diversification is better.

“It is easier to do business with your neighbour because it will be stronger. Previously, we have suffered travel advisories because of insecurities and turmoil, but if we are trading and exporting so much to Uganda who rely on us for many economic issues, why not add tourism to that bouquet? That is what we are trying to do out of this arrangement,” he said. Ikwaye urged the two governments to give the business community a favourable environment.

“At times, we have seen rivalry that is not meaningful, Kenyan food stopped. Ugandan and Kenyan drivers are not allowed to go to Uganda or Tanzania. Those bilateral and diplomatic challenges or hindrances need to be addressed so we are able to allow business to thrive and so that people benefit when the economy of these regions do well,” he said. Ikwaye said there is so much to benefit than to lose when there i He said Uganda and Rwanda are emerging destinations.

“Uganda and Rwanda are emerging destinations and they are learning from us. They are even benchmarking with us and they are likely to do something even better,” Ikwaye said.

“We have been struggling in Kenya to get incentives and if you look at tax regimes, they do not support business in this country.”

 He said Uganda is investing heavily in infrastructure leading to all the attraction sites and making it accessible and supportive to the tourist industry.s cooperation.

“Uganda has stakeholders that are working together. In Kenya, we have a fragmented approach where you find we have countless associations, each one of them pulling in a different direction.”

Source: The Star.

Kenya and Tanzania Restore Traffic Rights after Tense Stand-off.

In a dramatic turn of events, tensions between Kenya and Tanzania over flight rights were diffused just in the nick of time, averting a potentially damaging dispute. The African aviation landscape was shaken when Tanzania issued a notice, suspending all passenger flights between Dar es Salaam and Nairobi starting January 22. This move was a direct response to Kenya’s refusal of fifth freedom rights for Air Tanzania’s cargo flights between Nairobi and third countries.

However, swift diplomatic maneuvers unfolded behind the scenes to deescalate the situation. In a late-night tweet, Musalia Mudavadi, Kenya’s Prime Cabinet Secretary and Foreign & Diaspora Affairs Minister, announced ongoing efforts to resolve the differences. The tweet assured that both countries’ Civil Aviation Authorities were collaborating to amicably settle the matter within the next three days, quelling any potential alarms.

Responding to the diplomatic initiative, January Makamba, Minister for Foreign Affairs and East African Cooperation of Tanzania, confirmed the contact and emphasized the mutual agreement to swiftly resolve the issue within the stipulated timeframe. The exchange marked a diplomatic breakthrough, preventing a disruption that could have caused significant inconvenience to air passengers across the region.

Kenya Airways, with its 33 scheduled flights per week between Nairobi and Dar es Salaam, stood at the center of this potential crisis. The resolution underscores the importance of diplomatic channels in maintaining the smooth functioning of regional air travel.

Source: Airspace Africa.  

Sheikh Mohammed emphasizes the role of tourism in Dubai’s economic growth.

DUBAI: His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, today visited One&Only One Za’abeel, the first vertical urban resort in Dubai.

During the visit, His Highness highlighted the pivotal role of the tourism sector in Dubai’s economic expansion. He noted the significant growth of the sector in recent years, driven by an increasing number of visitors. Strong partnerships between public and private sectors have been key to Dubai’s success in delivering exceptional tourism services and facilities, he said.

Dubai is shaping a bright future brimming with new possibilities, with initiatives and projects that are opening new horizons of growth, excellence and innovation, His Highness noted. The emirate has charted a unique path for sustainable development with a strong focus on creating an exceptional environment for investors worldwide to harness the vast opportunities emerging from the emirate’s rise as a leading global business and tourist destination. Dubai is expanding its world-class infrastructure to realise the vast growth promise of its various sectors, including tourism. His Highness stated that these efforts are accelerating efforts to achieve the goal of the Dubai Economic Agenda D33 to make the city one of the world’s top three urban economies.

Accompanying His Highness Sheikh Mohammed during the visit were H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council; H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance; and Mohammed Ibrahim Al Shaibani, Managing Director, Investment Corporation of Dubai.

His Highness Sheikh Mohammed was briefed about One&Only One Za’abeel, the first vertical urban resort in Dubai developed by Kerzner International. The latest addition to Dubai’s hospitality offerings features 229 opulent hotel rooms and suites distributed across 15 floors, as well as diverse services and an array of exceptional dining options crafted by a distinguished team of world-class chefs. The resort also has sports facilities and an infinity pool, the longest in Dubai, stretching 120 metres and soaring 100 metres above ground level.

The opening of the urban resort in early January comes at a time when the emirate’s tourism industry is experiencing significant growth, providing visitors with a wide range of choices. Recent statistics from the Department of Economy and Tourism in Dubai reveal that by the end of November 2023, the city had a total of 149,680 hotel rooms in 820 establishments. This marks a significant rise from the 145,000 hotel rooms in 794 establishments recorded at the end of November 2022.

Source: Zawya.

Flydubai launches direct flights to Mombasa.

United Arab Emirates carrier Flydubai Wednesday started flights to Mombasa from Dubai in a move that looks set to raise competition against Kenya Airways (KQ) that also operates on the route.

The carrier has deployed a Boeing 737 type of aircraft on the route, flying four times per week to Moi International Airport from Terminal Three at the Dubai International Airport (DXB).

According to Flydubai online booking, fares from Dubai to Mombasa start from 846 United Arab Emirates Dirhams (Sh37,000) which matches KQ’s starting fares on economy class. Flydubai will be flying to Mombasa on Sunday, Monday, Wednesday and Friday.

Mombasa International Airport Manager Abel Gogo said the entry of Flydubai into Mombasa is a good move as it will heighten competition for customers among carriers, a move that will result in a drop in passenger fare.

“The entry of Fly Dubai is good for Mombasa as a region. With this expansion, we are going to witness increased movement of businesspeople and tourists into Mombasa,” said Mr. Gogo Wednesday.

Flydubai is launching direct flights to Mombasa eight years after former Transport Cabinet Secretary James Macharia granted it the rights in 2016.

The airline has become the first national carrier with direct flights from the United Arab Emirates (UAE) to the Kenyan coastal city.

The airline plans to partner with Emirates to codeshare the route to offer passengers more options for connections through Dubai’s international aviation hub.

With the launch of operations to Mombasa, Flydubai has now grown its network in Africa to 11 destinations in 10 countries, including Addis Ababa, Alexandria, Asmara, Dar es Salaam, Djibouti, Entebbe, Hargeisa, Juba, Mogadishu and Zanzibar.

“Dubai has seen steady growth in investment from Africa since Expo 2020 with more than 26,000 African companies registered with Dubai Chamber. Our direct flights to Mombasa and our growing operations in Africa will further support free flows of trade and tourism between the UAE and the East African markets,” said Flydubai CEO Ghaith Al Ghaith.

The entry of Flydubai into Mombasa comes barely a few months after Kenya granted Ethiopian Airlines more flights into Mombasa.

Kenya granted Ethiopian Airlines rights to fly twice directly into Mombasa every week last year in July keeping with the open skies policy, setting the stage for intensified competition with KQ.

The open skies policy requires easing access and rules of use of national airports for foreign airlines.

KQ had earlier argued that Kenya risks entering into one-sided deals with foreign carriers in the policy since there is no reciprocity guaranteed.

Source: The East African.