Air Cargo demand remains weak in May

IATA has released data for May 2023 global air cargo markets showing weak market conditions.

Gobal demand, measured in cargo tonne-kilometers (CTKs), fell 5.2% compared to May 2022 (-6.0% for international operations).

Capacity, as measured by available cargo tonne-kilometers (ACTKs), rose 14.5% compared to May 2022, primarily driven by belly capacity which increases as demand in the passenger business recovers. Capacity is now 5.9% above May 2019 (pre-pandemic) levels.

Key factors influencing demand include:

The global manufacturing Purchasing Managers Index (PMI) indicates an annual contraction of 1.4% in new export orders and a decrease of 5.2% year-on-year in production PMI. This suggests a cooling in global manufacturing demand.

Global goods trade decreased by 0.8% in April, due to macroeconomic challenges and supply chain constraints. Trading conditions appeared to favour maritime cargo as demand for container shipping contracted by 0.2% while air cargo demand weakened by 6.3% year-on-year.  

The global supplier delivery time PMI increased to 54.5 in May, up from its low of 35 in October 2021, indicating shorter delivery times and some relief for supply chains. However, this is also a sign of weaker global goods trade demand.

“Trading conditions for air cargo continue to be challenging with a 5.2% fall in demand and several economic indicators pointing towards weakness. The second half of the year, however, should bring some improvements. As inflation moderates in many markets, it is widely expected that central bank rate hikes will taper. This should help stimulate economic activity with a positive impact on demand for air cargo,” said Willie Walsh, IATA’s director general.

May Regional Performance

Middle Eastern carriers experienced a 3.1% year-on-year decrease in cargo volumes in May 2023. This was a slight improvement in performance compared to the previous month (-6.7%). Capacity increased 15.6% compared to May 2022.

African airlines posted a 2.4% decrease in demand compared to May 2022. This was a decline in performance compared to the previous month (-0.9%). Notably, the growth on the Africa to Asia trade route slowed significantly in May from 18.5% in April to 11.0%, possibly due to the impact of the conflict in Sudan since mid-April. Capacity in May was up 9.2% compared to the same month in 2022. 

Source: Times Aerospace

All-Boeing Future: Kenya Airways To Retire Its Embraer & Bombardier Aircraft

The carrier wants to adopt a single-type fleet strategy and is targeting Boeing aircraft.

Kenya’s flag carrier plans to retire its Embraer and Bombardier fleet in favor of Boeing aircraft as it looks to incorporate “mono fleeting.” This cost management strategy will be implemented in line with the airline’s long-term fleet and route development plans.

So far, Kenya Airways (KQ) has disclosed plans to phase out its Embraer Regional Jets and Bombardier aircraft to increase capacity and meet passenger demand. It is progressively moving towards becoming an all-Boeing operator, which the board has approved.

Mono fleeting

Fleet commonality can be a game changer for KQ. By operating aircraft that share common parts, and other characteristics, the airline will gain more control of its training and planning while reducing operating and maintenance costs.

Although airlines rarely disclose how much they pay OEMs for aircraft acquisition, they get significant discounts when making large orders. Mono fleeting can also help KQ to receive bulk discounts when purchasing new aircraft. Kenya Airways Group Managing Director and CEO Allan Kilavuka said;

“What mono fleeting does is to simplify our fleet and bring more commonality to the type of aircraft that we fly. It helps particularly with our training and planning and reduces costs because of the type of crew that we need, spare parts, financing and bulk discounts we can get.”

Increasing narrowbody capacity

Kenya Airways’ mono fleeting strategy is part of the plan to increase its narrowbody capacity. According to ch-aviation’s fleet database, the airline currently has a fleet of 21 narrowbody aircraft, including 13 Embraer 190s.

KQ is looking to phase out this fleet of regional jets as they are not providing the airline with enough capacity. The board has already approved the decision to streamline its fleet and acquire new Boeing jets, but it will not be implemented immediately. Allan Kilavuka added;

“We also want to increase the capacity of our narrowbody fleet as the current Embraer fleet that we have is too small. We tend to have payload issues; in other words, we cannot carry all the luggage that we need, so we want to increase the size over a period of time. That’s why we are going for the mono fleeting strategy.”

Looking at the airline’s last annual report, in 2022, the group operated a fleet of 39 owned and leased aircraft. The fleet consisted of nine Boeing 787-8s, eight B737-800s, 13 ERJs, two B737-300Fs, and seven DHC 8-400s. The fleet had been reviewed to ensure that it was fit to serve the network growth.

Sights on recovery

At its 47th AGM, Kenya Airways set its sights on business recovery by 2024 after seeing an increase in revenue and passenger numbers throughout 2022. While it still feels the long-lasting effects of the pandemic, the group predicts a strong recovery as global traffic increases and the industry continues to gain momentum.

The carrier’s turnaround strategy is still on course, and the restructuring efforts led to a 66% revenue increase in local currency, a remarkable 68% increase in passenger numbers, and a 3.5% increase in cargo tonnage. Allan Kilavuka said at the AGM;

“Kenya Airways remained resilient by taking advantage of the upsurge in travel demand through frequency increment and improved service offering. Despite some headwinds with fuel cost increasing year-on-year by 160%, and the dollar deterioration that impacted our direct operating costs, we are confident that with the restructuring initiatives introduced in 2022, the airline is poised for success and will attain its aspiration to turn around by 2024.”

The group is committed to building a robust, reliable, and sustainable airline. Kenya Airways will phase out older aircraft to operate a more modern and fuel-efficient fleet as part of its sustainable fleet development strategy.

Source: Simple Flying

Dubai’s DET hosts year’s first ‘City Briefing’, key tourism milestones highlighted

The event, held at the Dubai World Trade Centre, highlighted the crucial role assigned to the city’s tourism sector in driving the success of the Dubai Economic Agenda, D33

Dubai’s Department of Economy and Tourism (DET) held its first ‘City Briefing’ of the year on June 15.

Hosted for stakeholders and partners, the event was attended by Sheikh Ahmed bin Mohammed bin Rashid Al Maktoum, Second Deputy Ruler of Dubai, and more than 1,200 top executives from across the tourism ecosystem including aviation, travel, hospitality and retail sectors.

Attendees were given the opportunity to gain in-depth insights into the Dubai Economic Agenda, D33, which was launched by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to consolidate Dubai’s status as one of the top three global cities.

The event, held at the Dubai World Trade Centre, highlighted the crucial role assigned to the city’s tourism sector in ensuring the success of the 10-year agenda.

Highlights of DET’s briefing

In addition to the focus on the D33 Agenda, the latest data and industry outlook for 2023 and beyond were also shared by DET at the ‘City Briefing’ which was presided over by Helal Saeed Almarri, director general of DET.

Almarri said: “The Dubai Economic Agenda, D33 is a bold and ambitious plan developed under the visionary leadership of HH Sheikh Mohammed bin Rashid Al Maktoum, to create a legacy that will be celebrated by future generations, as we foster a climate of innovation, sustainability and inclusivity to pave the way for a future where Dubai stands proudly among the world’s top three premier destinations. With great optimism for 2023 and beyond, we will press on with determination and a renewed focus on delivering exceptional experiences for our visitors from around the world.”

Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing, also presented an overview of the industry and shared valuable insights into visitor trends and marketing strategies to the gathering.

He stressed the importance of collaboration with stakeholders and partners to ensure Dubai remains the preferred destination for global travellers and highlighted the various global campaigns that have successfully showcased the diversity of Dubai’s offering, further reinforcing its position as a must-visit destination.

He said that DET’s continuous efforts to promote Dubai across its international markets was directly responsible for driving 57 per cent of the total visitation of 14.4 million international visitors in 2022, generating millions of prospective travellers for the future, especially an anticipated substantial increase in travellers from 2023 to 2025.

These marketing activities, he said, have further influenced 11 million individuals to plan their Dubai trips and also inspired six million people to add Dubai to their ‘bucket list’ of destinations to visit between this year and 2025.

Dubai tourism and hospitality performance showcased

Dubai’s tourism sector delivered a robust performance, for the fourth successive month this year, welcoming 6.02 million international visitors from January-April, an 18 per cent year-on-year increase, compared to 5.10 million visitors during the same four-month period in 2022.

Dubai’s hotel sector reflected an average occupancy of 80 per cent during the January-April period this year, among the highest in the world, exceeding the 76 per cent level achieved by city hotels during the corresponding period in 2022 and nearly matching the pre-pandemic 83 per cent occupancy in 2019.

According to a STR Global Hotel Monitoring Update, Dubai ranked first in occupancy, with a rate of 79.9 per cent, only 2.9 percentage points below the pre-pandemic levels of 82.7 per cent, placing it ahead of other global destinations like London, New York, Los Angeles and Paris. The report also revealed that Dubai ranked first in Gross Operating Profit per Available Room (GOPAR), with a rate of U$145 (Dhs530), just 9 per cent below pre-pandemic levels, followed by Paris ($113) and Singapore ($102) respectively.

Hotel supply reached 148,949 rooms in 814 hotel establishments at the end of April 2023, a 26 per cent growth over the pre-pandemic figures of 118,449 rooms in 722 hotel establishments at the end of April 2019. Moreover, the average length of stay by guests has increased by 13 per cent to four nights compared to 3.5 nights in 2019, indicating Dubai’s appeal as a destination for longer-stay travellers.

According to data from industry expert Amadeus, search and booking volumes for Dubai remained steady from September 2021 to April 2023, with searches and bookings to Dubai during January to April 2023 nearing pre-pandemic levels and especially close to the high numbers seen during the Expo and pre-World Cup 2022 period.

Kids Go Free summer campaign to drive tourism

Kazim discussed the ‘Kids Go Free’ campaign, which aims to encourage families and global travellers to choose Dubai as their summer vacation destination. Hotels, entertainment centres and attractions are participating in this citywide initiative, offering families and children the opportunity to enjoy memorable experiences at attractive discounts and also free of cost for kids all summer.

Kazim provided insights into the extensive in-market activities carried out by DET’s overseas offices and over 3,000 global partners including travel trade and airline partnerships for leisure tourism, international roadshows and familiarisation trips for the travel trade and global media.

Ahmed Al Khaja, CEO of the Dubai Festivals and Retail Establishment, discussed leveraging festivals and events to increase visitation and reinforcing Dubai’s position as an international hub for leisure and business events and the MICE industry. He presented the diverse festivals and events sector in Dubai that are a part of the Retail Calendar including the iconic Dubai Shopping Festival and Dubai Food Festival, as well as the upcoming Dubai Summer Surprises, Eid in Dubai-Eid Al Adha celebrations, and the second edition of the Dubai Esports and Games festival, in addition to retail offers and promotions that residents and visitors can avail themselves of this summer in Dubai.

Stakeholders and partners attending also shared their milestones and positive outlook for the emirate’s plans to drive tourism and the ‘D33’ agenda.

Source: Gulf Business

Africa: Kenya, Tanzania, and South Africa Lead Efforts to Attract Chinese Tourists and Revitalize Tourism Sectors

Kenya, Tanzania, and South Africa are taking the lead among African nations in revitalizing their tourism markets following the pandemic.

With a keen focus on capturing the attention of Chinese travelers, these countries are strategically positioning themselves to attract visitors from China. By tapping into the growing interest of Chinese tourists in exploring Africa’s rich landscapes, wildlife, and cultural offerings, Kenya, Tanzania, and South Africa aim to revitalize their tourism sectors and drive post-pandemic recovery.

According to finance.yahoo.com, The three countries, along with Egypt, were among the first popular destinations for Chinese visitors after the Asian giant relaxed two-year-old pandemic rules to allow its citizens to travel for tourism in February.

All three countries have been implementing long-term strategies — including resuming direct flights to China, relaxed e-visa requirements, direct marketing in China through embassies and travel agents — and investing heavily to woo Chinese tourists.

Kenya is expanding its focus to reach more Chinese tourists by marketing through travel agents, partnerships with airlines and tour operators and social media platforms, according to John Chirchir, acting chief executive of Kenya Tourism Board. There’s a particular focus on WeChat, Mafengwo, Weibo, and Douyin, the China-based sister video channel to TikTok.

Chirchir said Kenya recorded 8,000 arrivals between January and April this year compared to just under 6,000 for the same period last year.

In 2022, Kenya earned $2.13 billion in income from tourism after a surge in visitors as COVID restrictions eased around the world, according to the tourism board. The ministry has forecast Kenya could recover to 2019 tourism numbers by 2024.

Similarly, South Africa has targeted job growth with the resumption of Chinese tourist activities in the country, said Nomasonto Ndlovu, chief operations officer of South Africa Tourism. She told Semafor Africa that with additional direct flights resuming from China to Johannesburg, for example, the country projects to receive around 8,000 Chinese tourists per month later this year. This would bring it back to 2019 levels when South Africa received 94,000 visitors from China.

African tourist markets are focused on the vast Chinese markets as part of a wider effort to overcome difficult economic environments. Jobs and foreign exchange earnings have yet to recover after the global pandemic, and many countries are grappling with extended economic downturns exacerbated by the fallout from Russian invasion of Ukraine. Although tourism usually accounts for less than 10% of GDP in most of the larger African economies, aside from Tanzania (17%), it punches above its weight as a contributor to foreign exchange earnings.

Local travel companies are taking it upon themselves to promote their countries on the ground in China rather than just hope for visitors. “That makes it possible to cast the net wider as we showcase Kenya’s tourist attractions,” said Darlene Anjimbi, a tour manager at Kenya China Travels and Tours.

Much of the long-term tourism business in Africa has traditionally targeted Europeans and North Americans in terms of everything from the types of entertainment offered to familiar languages and cuisine at hotels and on tours — and they still dominate in visitor numbers. In Kenya for instance, travelers from the United States alone accounted for over 12% of international visitors last year.

Source: atqnews

Lobby seeks consolidation of Africa airlines to lift industry.

Issuance of passports for free to East African Community (EAC) citizens is one of the practices that can boost air travel in the region, a study published by A regional private sector lobby suggests.

Airlines in the region can also consolidate, going the European or American way, which the study by the East African Business Council (EABC) notes, would stimulate passenger and cargo movement by air.

The study, which analyses aviation laws, reports and academic publications, pokes holes into the current industry practices against the cost of operations and the push for open skies initiative.

It is titled Study on Air Space Liberalisation in the East African Community: Focus on Cost Drivers and Regulations.

The study, commissioned by EABC in partnership with Trademark East Africa and funded by Kenya’s Ministry of Foreign Affairs and the Dutch government, focused on six areas – operational costs, existing air transport regulations in EAC, effects of domesticated EAC space, benefits of adoption of the EAC Single Space Agreement and the impact of aviation costs on cargo volumes and evaluation of best practices in other regions.

One of the best practices suggested in the study published in April is the consolidation of the airline business in the region through mergers and acquisitions.

It argues that airline consolidation, mergers and acquisitions in the United States and Europe resulted from the need to stimulate growth within the industry.

“It is a practice that can be adopted,” reads the study. It documents that from 2000 to 2010, the US airline market consolidated into four airlines.

The study also notes that the same trend is slowly being replicated in Europe.

“The Air France-KLM merger, which took place on May 5, 2004, rekindled European airline’s interest in consolidation. The EAC can adopt and consolidate airlines to increase their competitiveness globally,” it states. The study measured air transport competitiveness as assessed in the World Economic Forum by looking at airport connectivity and efficiency.

Connectivity measures the level of integration of a country within the global air transport network while efficiency is based on services. This includes issues to do with frequency, punctuality, speed and price.

“The rankings indicate that on average, EAC countries are ranked low in terms of competitiveness indicators,” the study says. The region also has limited infrastructure, which is a challenge to the air transport sector. The study cites South Sudan, which lacks full control of its airspace due to a lack of well-developed infrastructure and qualified personnel.

“In Burundi, the number of flights to Bujumbura is limited, compounded by a lack of a national carrier, which contributes to an increase in the cost of air transport,” notes the study.

South Sudan’s challenges are also exacerbated by insecurity.

The study has also faulted the lack of harmonised charges, fees and taxes imposed by the respective national regulations and authorities. It notes that Juba International Airport is the most expensive airport in the EAC region with an airport tax on passengers of sh18,300 (USD 122).

“The charge is more than twice the departure taxes charged by the different partner states,” the study says.

Entebbe International Airport charges $50.6 (Sh7,500) for every departing passenger, with$40 (Sh6,000) as passenger service charge and $10 (Sh1,500) as security charge and $0.6 (Sh90) as passenger handling charge.

Jomo Kenyatta International Airport (JKIA), on the other hand, charges a passenger service fee of $50 (Sh7,500) for every departing passenger and does not charge extra charges for security and passenger handling services. Julius Nyerere International Airport for its part, charges a passenger service charge of $37 (Sh5,550) and a security charge of $10 (Sh1,500).

Bujumbura International Airport and Kigali International Airport have the lowest passenger departure charges of $40 (Sh6,000) and $42 (Sh6,300) respectively.

The study found out that ticket prices also vary greatly even for the same distance and same airline if the departure time is different or if the ticket is booked at different times.

Ticket prices are even higher if there is a connection involved.

“EAC member states such as South Sudan and Burundi with limited direct flights and without national airlines, were generally found to have high average ticket prices,” the study says. It documents that the ticket price per kilometre in the EAC region is more than twice the ticket price for destinations in Europe and other countries in Africa.

“The average ticket price per kilometre in the EAC is  Sh58 ($0.39 )/km compared to only $0.21 (Sh30)/km in other African countries and $0.12 (Sh18)/km for destination airports in Europe, Asia and the Middle East,” the study adds.

The study notes that there are so many barriers to a vibrant air travel ecosystem and they need to be “knocked down.”

Some of these include reviewing check-in times. “Most passengers are tired of getting to the airport so early; let’s cut bag-free, pre-screened short-haul flyers some slack and allow them a 20-minute window to check in,” reads the study.  The study recommends the implementation of visa waiver programmes in all countries where most business and tourism come from to spur air transport in the region.

Source: The Standard

Air Seychelles Sees Strong Demand For Flights But Needs More Aircraft

The Seychelles flag carrier has seen a significant increase in passenger traffic but needs more capacity to meet the demand. Although passenger numbers continue rising, several challenges hinder African airlines from meeting the pent-up demand for air travel.

Several markets and airlines have recovered from the pandemic, recording significant growth and net profits. Although it has not published its financial performance for FY22, Air Seychelles confirmed that the demand in the region had surpassed pre-pandemic levels. The airline’s Acting CEO, Sandy Benoiton, said in an interview with Simple Flying;

“In the whole ecosystem, there has been so much disruption that it is going to take time to be able to match the demand that is there. The demand is probably at or even above pre-pandemic, but I think one of the biggest issues is being able to serve the demand, particularly the legacy of the bigger carriers.”

The incredibly high cost of fuel and maintenance, supply chain issues, and restricted access to certain markets has stopped some airlines from carrying as many passengers as they had planned.

Increase in passenger numbers

To survive the pandemic, the airline underwent several changes, and it is one of the few African carriers that essentially never stopped flying. Working with the government, it converted its passenger jets into cargo aircraft, eventually opening the country up faster than anticipated.

The carrier also changed its fleet from the Airbus A320ceo to the A320neo to extend its range and tap into new markets. The airline fell into business administration in October 2021 and exited in November 2022, and since then, it has seen very positive results, managing to record some profits, which will be announced soon.

Apart from its regular service to Mumbai, Mauritius, Johannesburg, and Tel Aviv, the airline’s A320neos managed to fly to about 35 destinations in 2022, with chartered flights to Australia, Amsterdam, Beijing, Bucharest, Dakar, and London, to mention a few.

Passenger traffic in the region has recovered to about 110% of pre-pandemic levels, showing a positive outlook for the airline for the rest of the year. Air Seychelles is now working on developing new routes and working with partners to enhance its network.

Inaugural flights to Sri Lanka

Last week, Air Seychelles launched its inaugural flight to Colombo, Sri Lanka, its second destination in Asia. The four-hour flight from Seychelles International (SEZ) to Bandaranaike International Airport (CMB) was operated on the A320neo, which was welcomed by a traditional water cannon salute.

While in Sri Lanka, the Acting CEO officially inaugurated the first Air Seychelles office in Colombo. However, the aircraft remained on the ground for about one hour and then made the return flight with 2.5 tons of cargo headed for Tel Aviv Ben Gurion Airport (TLV). This is another essential destination for the airline, being the second-most demanded after Johannesburg OR Tambo (JNB).

Flights between Mahé and Colombo will be operated four times a week, with two flights leaving Seychelles on Tuesdays and Saturdays, while the other two return on Wednesdays and Sundays.

Growing the airline post administration

Seychelles is a very small island country with about 100,000 people. Air Seychelles is one of the biggest businesses on the island, providing more than just air travel for the citizens. It is part of the country’s economic development, so the CEO is dedicated to growing the airline and keeping it alive.

The carrier constantly looks for new routes and opportunities to expand in line with its development strategy. At the moment, Air Seychelles is leveraging its recent partnership with Qatar Airways to increase its footprint in the global market.

The airline will also partner with Sri Lankan Airlines to allow its passengers to fly beyond Colombo to other destinations in Asia. Additionally, it is discussing codeshare agreements with more airlines, which will be announced soon.

Source: Simple Flying

IATA Recognizes SAATM As The Key To Unlocking Africa’s Aviation Potential

The International Air Transport Association (IATA) recognizes the full implementation of the Single African Air Transport Market (SAATM) as the key to realizing the potential of aviation in Africa.

Although SAATM has been gaining pace in recent years, it has not been fully appreciated on a continental level. To date, 34 of the 54 African states have signed up for SAATM, with Uganda considering joining later this year. These 34 countries represent about 80% of the existing aviation market in Africa.

Liberalization of the air transport market

IATA has launched the Focus Africa initiative to enhance air travel’s contribution to Africa’s socio-economic development. It seeks to develop a more secure, reliable, safer, and well-connected continent by unlocking the commercial and economic opportunities offered by aviation.

The initiative will focus on six critical areas, including connectivity. Through this, it will promote the liberalization of intra-Africa market access by implementing SAATM. IATA has predicted that if 12 major countries opened their markets and increased connectivity, up to 155,000 jobs and $1.3 billion in annual revenue would be created in those countries.

Various stakeholders, including airlines, airports, civil aviation authorities, and executing agencies, have come together to promote the liberalization of African markets. Open skies will benefit all countries involved, so now it is time for the decision-makers to come onboard to ensure the effective implementation of SAATM.

 

The importance of the fifth-freedom

Given the vastness of the African continent, air travel is the best way to move people, goods, and services across all regions. About 85% of air travel around the continent is directly from point to point, while the remaining 15% is fifth freedom.

This significantly limits connectivity in Africa, with some airlines not having access to important markets, and the fifth freedom is the key to stimulating the sector’s growth. The African Civil Aviation Commission (AFCAC) Secretary General Adefunke Adeyemi said during the Focus Africa Conference;

“YD grants first to fifth freedoms. It is the combination of these freedoms that makes the traffic flow, and the fifth is the trigger. The fifth freedom is what stimulates traffic.”

According to the Yamoussoukro Declaration (YD), states grant each other the free exercise of the rights of the first to fifth freedoms of the skies on scheduled and non-scheduled flights by an eligible airline to and from their respective territories. However, some states have denied several airlines the right to freedom fights.

 

Effective implementation of SAATM

AFCAC is the executing agency of the Single African Air Transport Market, facilitating the collaboration of African states toward a sustainable air transport market. Today, 23 of the SAATM signatories have also agreed to an application memorandum to remove the restrictions provided for in the Bilateral Air Services Agreement (BASA), contrary to YD.

Advocacy and continuous communication to all stakeholders on the benefits of open skies is a significant step toward ensuring the effective implementation of SAATM. The Airlines Association of Southern Africa (AASA), AFCAC, and other stakeholders want to showcase to states the benefits of having a robust aviation sector, with Ethiopian Airlines being the best example.

Under a new approach, AFCAC has also launched an initiative called the SAATM Pilot Implementation Project, which looks at countries with sufficient parameters to move forward with the implementation of SAATM. So far, about 20 countries have agreed to accelerate the implementation of SAATM.

It is challenging to deal with 54 countries as a united front, so these countries have been broken down into clusters. Adefunke Adeyemi said that one of the most important things is for the countries in these clusters to grant each other market access and fifth freedoms with unrestricted capacity and frequency.

What is slowing down the full implementation of SAATM?

For SAATM to thrive, African states need to facilitate the movement of people and goods by opening up their skies, removing strict visa requirements, and granting foreign airlines access to their markets.

Sometimes airlines apply for fifth freedom rights, and even if the right is granted, they face other impediments, including very high landing costs, prevention from opening local offices, and high inspection costs, to mention a few. Additionally, some states deny fifth freedom rights to more prominent airlines in fear of the competition it gives the national carrier.

SAATM has also not been fully realized because several governments do not prioritize aviation. States have not realized the potential of a thriving air transport sector, so they will be committed to other industries before they invest in aviation. AASA Chief Executive Officer Aaron Munetsi said;

“We must understand some of the major challenges we face. One of the major challenges is that our countries just don’t have the economic power to be able to say that we want to take part of the resources we have and focus only on aviation when schools and hospitals need to be built and when farming and everything else needs to be dealt with.”

However, he added that revenue from airlines and air transport should not be used for other things but to develop airports, air navigation systems, and the entire aviation market. IATA is ready to work with global stakeholders to ensure that SAATM is fully realized and implemented.

Source: Simple Flying

Air France-KLM: African Skies a Strategic Priority

Air France-KLM airline group is banking on the growing demand for passenger air services within African continent.

Setting to capture aviation business over the African continent, Air France-KLM is planning major expansion in Africa, banking on the growing demand of air services within the continent. Air France-KLM executives have rated the African skies as a strategic priority for the airline group.

Africa is the fifth biggest business area in the group’s network of 12 regional operations, behind North America, Greater China, Korea and Japan, said Marius van der Ham, the regional manager for the East and Southern Africa, Ghana and Nigeria region.

Air France-KLM has already increased capacity on its Kenya to Europe flights, by 14 percent (14%) this year, van der Ham said.

Air France-KLM operates two daily flights from Nairobi to Amsterdam and Paris, up from a daily flight to Amsterdam and five weekly flights to Paris earlier.

The group is adding three flights on its Paris to Johannesburg route, targeting the growing and higher demand for passengers during the current peak summer travel season.

Air France-KLM has also introduced new flights between Paris and Dar es Salaam in neighboring Tanzania, he said.

“Africa is really strategic for the group,” said Zoran Jelkic, a senior vice president for long haul.

Air France-KLM competes with African carriers like Ethiopian Airlines, Gulf carriers including Emirates and European airlines including British Airways, all of whom are targeting the growing African travel market.

The airline executives have expressed their feelings over the challenges facing operations and markets, including shortages of hard currencies in some destinations, making it difficult to repatriate their earnings.

The Air France-KLM Group already provides daily service to Dar es Salaam, with KLM serving the city daily.

Air France has resumed its direct flights from Paris to Dar es Salaam, making it the 31st route in Sub-Saharan Africa after a 28-year absence.

Dar es Salaam becomes the second destination in Tanzania, joining Zanzibar where the airline has been operating since October 2021 with two weekly flights into the Abeid Amani Karume International Airport in the island.

The airline had launched on June 12th, its three weekly flights to Dar es Salaam using 279-seat 787-9s, its second-smallest wide-body after the A330-200 equipment.

The French carrier had connected Paris Charles de Gaulle (CDG) to Dar es Salaam’s Julius Nyerere International Airport (JNIA) a continuation of the existing service to Zanzibar with a plan to launch five nonstop weekly flights further south between Paris and Antananarivo (TNR) in Madagascar.

Flights to and from Madagascar will be operated for the first time by an Airbus A350-900, the new jewel of the company’s long-haul fleet, equipped with 34 seats in Business, 24 seats in Premium Economy and 266 seats in Economy class.

African air transport market has been growing, attracting big global air carriers including Delta Air Lines which has targeted African skies through partnerships with other, reputable air carriers.

Delta has seen an increase in demand for its African destinations and has identified it as a region of importance, setting to attract passengers traveling between the US and its various destinations in Africa.

The International Air Transport Association (IATA) had indicated that passenger traffic in Africa has recovered in 2023 with growth of which Central and West Africa recorded 108 percent (108%) growth, Eastern Africa at 110 percent (110 %) and Northern Africa at 111 percent (111%) against the of 2019 growth rates.

Passenger traffic in Southern Africa has been recovering at 86 percent (86%) as positive expectations indicate rising number of passengers from Africa next year (2024).

SOURCE: eturbonews

KQ, Uganda Airlines open dialogue for easy access

Kenya Airways (KQ) has started talks with Uganda Airlines for interline and re-protection deals as it seeks to open access to several new destinations and offload passengers onto each other’s networks.

KQ chief executive Allan Kilavuka disclosed that the talks are at an advanced stage.

“The talks are on but the timelines are as soon as we can agree and do the set-up. These (deals) fall within our partnership pillar, which is part of our strategy. It is also in line with our pan-African strategy,” Mr Kilavuka told Business Daily.

An interline deal allows passengers to check in once for all the flights on the itinerary, receive boarding passes and transfer luggage from the first airline without having to collect and drop it off.

Ugandan Airlines says it is keen to seal the deal before the year ends as the carrier seeks to grow revenues four years after it was revived.

“Conversations are ongoing with Kenya Airways for both interline and re-protection. A lot is going on around the two and we hope to have an agreement by the end of the year,” Peggy Macharia, country manager of Uganda Airlines in Kenya, said.

Re-protection allows an airline to offload its passengers onto a rival carrier with whom they share a destination when the affected airline is not able to fly on a select destination they share due to a mechanical failure or change of schedule.

Source: Business Daily

Mastercard Partners With Dubai to Accelerate Economic Growth in ‘Digital City’ Initiative

The Department of Economy and Tourism of Dubai has signed a Memorandum of Understanding (MoU) with Mastercard, with an aim to further accelerate economic growth in the region – in line with the goals of the Dubai Economic Agenda, D33. 

The new ‘Digital City’ partnership between the global payments leader Mastercard and the economy and tourism authority in Dubai enables the city to utilise the company’s multi-rail payments network and data-driven digital commerce technology.

The MoU will lead to the development and implementation of a multi-year digital partnership programme in Dubai. The programme will focus on four key areas:

  • Trade and exports growth: The collaboration aims to enable new international trade opportunities for businesses by leveraging Mastercard’s expertise in secure and efficient payment transactions.
  • Developing SMEs: The partnership will prioritise the growth of SMEs by providing them with digital tools, resources, and mentorship to foster innovation, competitiveness, and sustainability.
  • Attracting and developing talent: Dubai and Mastercard will also work together to attract and nurture Emirati and global talents in the digital sector, supporting the development of a skilled workforce.
  • Growing the tourism ecosystem: An aim to enhance the tourism industry in Dubai by improving visitor experiences to become a top-three global destination for visitors in business as well as leisure.

This partnership also falls in line with Mastercard’s vision of powering economies and empowering people, as well as building a sustainable world where everyone prospers.

‘Driving inclusive and sustainable development’

Hadi Badri, CEO of Dubai Economic Development Corporation at DET, and J.K. Khalil, cluster general manager of MENA East at Mastercard signed the MoU.

J.K. Khalil said: “At Mastercard, we recognise the limitless potential of partnerships in driving inclusive and sustainable development, and we are forging meaningful collaborations to accelerate digital transformation across the globe. Mastercard has a proven track record of supporting governments in digitising public services, empowering small businesses, fostering talent and fuelling tourism.

“We are delighted to enter the region’s first digital city partnership with the Department of Economy and Tourism as we harness the power of our advanced technology to help translate Dubai’s ambitious vision to reality. We are proud to build on our 35-year legacy in the market as we usher in a new chapter to support the UAE’s exemplary growth story.”

‘Unlock the city’s potential in line with the D33 Agenda’

Hadi Badri also discussed the significance of the partnership for the region. Badri said: “This Digital City partnership with Mastercard, a renowned global brand, comes at a pivotal time, as we are focused on delivering the goals of the Dubai Economic Agenda 2033, driven under the guidance of our visionary leadership to further reinforce the city’s central position in the global economy.

“Through this strategic alliance, we are partnering with a global connector of digital payments to further strengthen Dubai’s position as the world’s most connected city.

“Mastercard has a track record of successful partnerships with companies across a broad range of sectors and segments, and this initiative also signifies a new paradigm of economic collaboration at the city level. Through this partnership, Mastercard will mobilise its global resources and extensive experience as a global digital leader to unlock the city’s potential in line with the D33 Agenda.”

Source: The Fintech Times