IATA cooperates to bring aviation benefits to Somalia

IATA and the Government of the Federal Republic of Somalia agreed to deepen and formalize cooperation with the aim of strengthening the economic and social benefits of aviation in Somalia.

Under an agreement signed by Kamil Alawadhi, IATA’s Regional Vice President, Africa and the Middle East, and H.E. Fardowsa Osman Egal, the Minister of Transport and Civil Aviation, Federal Republic of Somalia, a new framework was established that will also see an expansion of IATA’s activities in the country.

“Aviation is a significant contributor to the UN’s Sustainable Development Goals (SDGs), so the potential for a strengthened air transport sector to contribute to Somalia’s development is enormous. This agreement aims to realize that potential for social and economic development by focusing on global standards and best practices. H.E. Minister Fardowsa Osman Egal has a strong vision for a successful aviation sector to contribute to a more prosperous Somalia. And we are determined to support that by turning the words of our agreement into real actions,” said Alawadhi.

The agreement provides the framework to support IATA’s mission for aviation in Africa: the creation of a safe, efficient, sustainable, and economical air transport sector that generates growth, creates jobs, and facilitates international trade and tourism as well as playing an essential role in supporting the UN SDGs through generating connectivity between nations.

“Aviation is essential to the success of Somalia’s development plans.  The Government of Somalia is committed to developing its air transport sector to help promote long-term social and economic growth in the country. And we will ensure that global best practices are at the core of development. This agreement will pave the way for closer cooperation on the priorities for aviation in the country,” said Egal.

Source: Airlines

Kenya Cashes in On Growing Demand From Indian Travelers

Kenya is banking on the increasing appetite for leisure travel amongst Indian youths and professionals to increase its tourism arrivals from the market.

The country is seeking to grow its visitor numbers from India, the top five performing tourism source market to Kenya to surpass the 2019 figures of over 120,000.

In 2022, the arrivals into Kenya from the Indian source market recorded a growth of 93.2 per cent to 81,458 from 42,159 in 2021.

This is a recovery of 67 per cent compared to the 2019 performance of 120,893.

Kenya’s High Commissioner to India Ambassador Willy Bett says the Indian community has the potential to add to the international tourism visitation into Kenya.

He said the current travel trends shows that the segment has the disposable income and is ready to travel to tourism destinations.

“This segment has really exploded in India and is ready to spend for their travels. Kenya is in the right position to tap into this market and grow tourism business,” says the ambassador.

Ambassador Bett, who was speaking at this year’s Outbound Travel Mart (OTM), a tourism fair in Mumbai India, further observed that ease of access and close ties between Kenya and India were major ingredients for the tourism business and other investments into Kenya.

“Besides other airlines, the recent launch of Kenya Airways direct flight from Mombasa to Dubai has an impact on India’s travelers as those seeking beach leisure in the Kenyan coast can fly directly from Dubai”, said the ambassador.

Kenya is increasing its physical presence in India after the Covid-19 pandemic with 14-travel trade participants from the private sector attending a 3-day long tourism exhibition that ended over the weekend and attended by over 160 exhibitors from other destinations.

The Kenyan trade has also mounted roadshows for direct business-to-business meetings with the Indian travel agents in key cities of India including Ahmedabad Bangalore and New Delhi.

The High Commissioner, at the same time, challenged the travel trade to develop packages for golfers, a segment he pointed out was a game changer in revenue receipts to the country.

“Countries like Thailand are getting golfers from India, yet we as a country equally have better golf facilities spread across all regions of the republic. This is an area we need to explore to its maximum, “said the ambassador.

Kenya Tourism Federation Chairman Fred Odek said the exhibitions and other promotional programs by the trade in India are expected to bring tourism numbers from the country to about 130,000 by the close of the year.

He said Kenya was well placed and endowed with tourism resources to compete with other destinations in the world adding that Kenya’s hospitality sector has strived to keep pace with the changing needs of today’s traveler.

“As a tourism sector, we have not been left behind in the dynamic demands of the traveler, the diverse tourism offering to meet the different needs of the visitor and value for money is what has kept Kenya as a destination above others,” said the KTF chairman.

Source: Capital Business

International air travel to Africa is rebounding

Some African countries have surpassed pre-covid arrival numbers and revenue levels

The return of Chinese tourists to Africa and a full resumption of operations on international routes by African airlines are the latest indicators of a rebounding tourism industry, badly hit by the covid-19 pandemic two years ago.

China has picked three African countries—Egypt, Kenya, and South Africa—among 20 across the globe for piloting outbound group tours, nearly a month after lifting travel restrictions.

According to a ministerial notice published on Jan. 20, Chinese travel companies will be allowed to provide travelers with airline and hotel packages to selected countries starting Feb. 6.

“From now on, travel agencies and online travel companies can carry out preparations for product releases, publicity and promotion,” read the document.

Chinese tourists are coming back to Africa

A week before this, the Egyptian capital welcomed the first tourists from China since the outbreak of covid-19, following a visit by China’s Foreign Minister, Qin Gang.

United Nations World Travel Organisation’s latest World Tourism Barometer confirms the return of Chinese tourists will significantly boost Africa’s international arrival numbers and push them to 2019 levels.

“The removal of covid-19 related travel restrictions in China, the world’s largest outbound market in 2019, is a significant and much-welcomed step to the recovery of the tourism sector in Asia and the Pacific and worldwide” according to the report.

In a recent speech, China Tourism Academy President Dai Bin said destination Africa needed to optimize its promotion strategy and improve its hospitality system for the Chinese market to unlock its vast growth potential.

“In the next five years, the steady recovery of outbound tourism in China will provide new opportunities for the world tourism industry, including Africa,” said Bin.

In 2019, Chinese international outbound arrivals were recorded at 155 million – more than double Africa’s inbound arrivals, which totalled 68.8 million in that period.

Easing of covid restrictions is boosting tourism

Africa has recovered about 65% of its pre-pandemic visitor numbers following a more than doubling of international arrivals from 19.4 million in 2021 to 45 million in 2022.

UNWTO attributed the rebound ‘to a large pent-up demand and the easing of travel restrictions across 116 countries that saw a number of African countries exceed pre-covid arrivals and revenues.’

According to the barometer, Ethiopia’s arrivals had risen 3% above pre-pandemic levels, while Morocco’s tourism receipts grew 6% in the first ten to twelve months of 2022.

Another analysis by ForwardKeys, a US airline web traffic data firm, shows Africa’s (-19%) international inbound arrivals recovered faster than the global average (-30%) in the last quarter of 2022.

Countries in west (-6%) and central Africa (a 10% increase over 2019 levels) led the continent towards complete recovery.

“West and central Africa benefit from VFR [visiting friends and relatives] travel from Europe and North America, our data shows growing interest from Portugal and Spain for Cape Verde, while the improved seat capacity from the US to Ghana is attracting a more premium travel crowd,” said Vice President of Business Development at ForwardKeys, Gordon Clark.

Tourism in Kenya, Tanzania, South Africa, and Egypt

Other African countries that have recorded significant gains over the period with higher prospects in 2023 include Kenya, Tanzania, South Africa, and Egypt.

The Kenya Tourism Board in December 2022 put total arrivals in Kenya between January and November 2022 at 1.32 million, a 74.5% annual growth over 2021.

Tanzania recorded annual tourism arrival growth of 64% to 1.17 million in the first ten months of 2022, according to the country’s National Bureau of statistics.

South Africa’s tourism ministry recorded the country’s arrivals from January to October 2022 at 4.5 million, which is 47% below 2019 levels.

“We are upbeat as all indications are that our tourism sector is on a fast highway to recovery,” said South Africa’s Tourism Minister, Lindiwe Sisulu.

A US-based data and research firm, Fitch Solutions, projected tourist arrivals to Egypt would jump by 46% to 11.6 million in 2023.

Resumption of airline flights to Africa

And the international tourism boom looks even brighter in 2023, with the resumption of entire operations and re-introduction of higher capacity aircraft on African routes also seen boosting recovery this year.

United Arabs Emirates carrier Emirates has announced it will re-introduce its higher capacity flagship aircraft, the Airbus A380, to Morroco’s capital, Casablanca, from Dubai starting in April.

Emirates said the service upgrade, which opens it up to two other destinations—Johannesburg and Cairo—is part of its efforts to ramp up Africa operations.

“The flagship A380’s deployment to Morocco is also a testament of the airline’s commitment to support inbound visitor arrivals as the country double downs its efforts to reinvigorate its tourism industry,” said the airline in a statement.

In 2021, Emirates enhanced its partnership with Royal Air Maroc to a codeshare agreement that gives its access to 17 Morrocan and 63 international destinations covering west and central African routes.

The African Airlines Association said local airlines had exceeded their 2019 pre-covid operation levels on international routes by 2.28%, meaning some have also opened new international routes.

The original version of this article was published by bird-Africa no filter.

Source: Quartz

ICAO upgrades Somalia airspace to Class A after 30 years

The aviation community has welcomed the restoration of air traffic control services over Somalia.

The International Air Transport Association (IATA), said the reclassification of Mogadishu Flight Information Region to Class A airspace, will improve safety through improved situational awareness for pilots flying through the country’s upper airspace.

Coming 30 years since radio navigation went silent over Somalia, the development follows the installation of new navigation and other aeronautical infrastructure. The International Civil Aviation Organisation (ICAO), officially restored Class A air traffic control services over Somalia on January 26.

Until now, pilots flying over Somali airspace depended on the IATA in-flight broadcast procedure where they announce — on a dedicated radio frequency — their aircraft’s position, altitude, heading and speed. It is then up to any airborne pilots of other aircraft to be tuned to the same frequency and listen out for such broadcasts.

There has been no one on the ground to coordinate the traffic and assign aircraft to flight levels or warn pilots if their aircraft were converging or in too close proximity to each other.

Busy air corridor

The IATA in-flight broadcast procedure is implemented in areas where air traffic control becomes unavailable.

“Air traffic control means there is someone with the full spatial picture who can guide the passage of aircraft through the airspace in a safe and coordinated manner,” an expert told The EastAfrican.

According to IATA, Somalia hosts some of the region’s busiest airways that link the African subcontinent south of Ethiopia with the Middle East and Indian subcontinent as well as Western Europe with the Indian subcontinent and Indian Ocean islands. All these cut across Somalian airspace, which is officially known as the Mogadishu Flight Information Region (FIR).

Enhance situational awareness

“The upgrade of air traffic management and improved navigation and communication infrastructure will enhance situational awareness along an increasingly busy air corridor and its intersections with routes linking many of the world’s regions,” said IATA’s Regional Vice President for the Middle East and Africa, Kamil Al-Awadhi.

The reclassification of the airspace and operational resumption of air traffic control in the Mogadishu FIR comes after successful trials that began in May 2022.

All flights operating in Class A airspace must be cleared by air traffic control which is also responsible for maintaining lateral and vertical separation between aircraft.

Source: The East African

US warns Türkiye over servicing Russian, Belarus carriers

Turkish airport ground handler Havaş has warned Russian and Belarusian airlines that it may no longer be able to serve around 180 Boeing and other aircraft due to United States sanctions, Russia’s RBK TV channel reported.

The ban would include refuelling, maintenance, and repair of any aircraft in which more than 25% of American parts and technologies have been used – a general de-minimis rule for what constitutes a US product.

The development follows the emergence of reports last week that Washington was leaning on Türkiye to stop Russian carriers from operating flights there with Boeing jets, as it tries to more comprehensively enforce sanctions imposed on Moscow after its invasion of Ukraine last February.

TAV Airports-owned Havaş, Türkiye’s largest ground handler, dispatched a letter to Russia dated January 31 saying: “We are running a due-diligence process to identify the risks and consequences to our business and stakeholders. As a result of this, we may find ourselves unable to serve some or all of your flights.”

The letter, which circulated on social media channels on February 1 with the recipient blacked out, was signed by Mete Erna, general manager of Havaş. It referred to “warning letters being sent to companies in the Turkish aviation industry” from the US Bureau of Industry and Security (BIS) highlighting the imposition of Temporary Denial Orders (TDOs) in connection with the Export Administration Regulations (EAR).

“We shall inform you about future developments and actions planned,” it concluded.

Three sources at Russian airlines and one close to the country’s aviation authorities confirmed the authenticity of the letter to RBK.

Havaş “offers complete ground handling solutions at 32 stations in Türkiye, Latvia, and Croatia,” according to TAV Airports’ website. These include Istanbul AirportAnkara Esenboga, and Antalya.

Airlines notified

A list attached to the letter elaborated that service may be denied to Boeing as well as some Airbus aircraft, in total listing more than 170 aircraft operated by Russian carriers, seven jets operated out of Belarus, and four in Iran. The biggest operator of these aircraft is Aeroflot, but the list also names AirBridgeCargoAzur AiriFly AirlinesIkar (Russian Federation) (formerly Pegas Fly), Nordwind AirlinesPobedaRed Wings AirlinesRossiyaS7 AirlinesUral AirlinesUTair, and Yamal Airlines in Russia, as well as BelaviaIranAir, and Mahan Air.

It also throws in B787-8(BBJ) and Gulfstream Aerospace G650 business jets belonging to Roman Abramovich. A representative of the businessman told the news channel that he does not currently have any aircraft in Türkiye.

One of RBK’s airline sources said that Havaş would discuss the issue with Russian carriers within two weeks, adding: “Essentially, Havaş is asking Russian companies to come up with a way to solve the problem, as there are four other handling companies operating in Turkey. Handling could be switched to these other companies.” Flights to Türkiye will continue, the source insisted.

Alexander Neradko, head of the Russia’s civil aviation regulator (Rosaviatsiya), told RBK on February 1 that international cooperation would carry on despite the actions of a number of states to enforce sanctions. Aviation is “a global system of economic relations,” he said, and cooperation with “friendly states” continues.

Source: Ch-aviation

Dubai in One Day: DHA launches innovative medical tourism package

It aims to allow international medical tourists to book procedures and access a wide range of tourism services within a few hours

The Dubai Health Authority (DHA) launched ‘Dubai in One day’, an innovative medical tourism package targeting international patients.

The DHA’s latest health initiative launched at the Arab Health 2023 aims to allow international medical tourists to book procedures and access a wide range of tourism services within a few hours.

Mohamed Al Mheiri, DHA’s Director of Health Tourism Department, said: “We are participating to showcase our latest initiative, ‘Dubai in one day’ that promotes preventive health screenings that could be available in one day between two to six hours. The demographics of the people that we are trying to reach are from our neighbouring countries, aged between 25 and 50 years.”

He explained that the prices were selected based on other competing destinations. “The idea is to draw home the fact that Dubai has similar services. We also have additional clinics, hospitals that provide one day services, whether it’s rented services, commodity services, everything that could be done in Dubai in one day. This will bolster the tourism ecosystem and develop the tourism industry.”

Elucidating on the entailing costs for medical tourists Al Mheiri explained: “It is Dh800 for regular checkup, the executive price is Dh1,400, for the comprehensive checkup it’s Dh4,900 for males and Dh3,300 for females.”

It can be booked on the DHA website which will redirect a patient to the healthcare facility that provides the service, in addition to the one-day service. “Whenever we say healthcare providers, the privacy part is quite crucial. That’s the reason for redirecting patients to the healthcare facilities,” he added.

New edition of the Dubai Investment Guide by DHA

The DHA also unveiled the new edition of the Dubai Investment guide which gives a sneak peek of a wide range of areas where the DHA will continue to expand and develop the health sector, with key focus areas of investment until 2025 and beyond.

The DHA’s Health Investment arm highlighted the details during the launch of the guide, which is a ready reckoner for investors to understand healthcare investment opportunities across various specialties that are needed at present and in the future.

It provides an overview of Dubai’s health sector, areas of demand, key drivers and how to invest in Dubai.

Awadh Seghayer Al Ketbi, Director-General of the DHA, said: “We will continue to expand and develop the health sector with an aim of creating a dynamic, investment-friendly sector that provides both residents and medical tourists with easy access to the highest quality of patient-centred care across a wide range of medical specialties.

Al Ketbi added: “The aim of DHA’s dedicated health investment arm is to evaluate investment opportunities, ensure high-quality healthcare investment, provide investors with support and guidance so that they can invest in areas of need and future demand. This benefits investors and ensures the health sector provides community members and medical tourists with high-quality care across multiple specialties.”

Source: Khaleej Times

Kenya among countries with best aviation safety standards

Aviation security takes the front row among other concerns in civil aviation. No wonder, aviation is one of the safest modes of transport. The International Civil Aviation Organisation (ICAO) places a high premium on security status in aviation by providing standards that member countries should adhere to. Indeed, this was perfectly manifested by setting 2021 as ICAO Year of Security Culture.

In 2022, Kenya attained a milestone in aviation after the mandatory International Civil Aviation Organisation universal security audit gave a score of 91.77 per cent, the highest ever recorded in the region. This score presents a major milestone in the growth and development of civil aviation in Kenya, East Africa and the rest of Africa.

Suffice it to say this audit outcome has given Kenya a clean bill, with the score ranking Kenya the best in East, Central and Southern Africa region, and the second ranked in Africa. Currently, the global score on the average Effective Implementation (EI) of Critical Elements (CEs) stands at 71.86 per cent, an African average of 61.90 per cent and East and Southern Region at 65.61 per cent.

The scope of this safety audit involved security and facilitation, which are detailed in ICAO annexes 9 and 17. Kenya has now been audited three times under the Universal Security Audit Programme (USAP) with good progress released. The first audit was done in 2008, where the state scored 68 per cent while the second one was done in 2015 in which Kenya scored 88 per cent. The latest audit score clearly manifests the upward trajectory for Kenya besides having included an expanded scope of the audit areas.

This is significant for the country and provides an impressive overall picture of security compliance status in Kenya. It also provides a desirable confidence indicator to other states, existing and potential air carriers and investors on the robust nature of Kenya’s aviation security system.

This improved performance comes just after Kenya attained Category 1 status, making possible direct nonstop flights into the United States of America in 2018.

A country security audit is not a one-man show. As such, the audit incorporates elements of both risk based and continuous monitoring approach that support enhancement of international civil aviation security in the entire civil aviation sector areas and therefore collaborates a number of agencies in both government and private sector.

There is no doubt that the aviation industry has been a major contributor to the Kenyan economy growth and will continue to be. International tourists arrive in the country by air. Lots of cargo is also airlifted in and out of the country. And domestic flights continue to be a major means of secure transport for Kenyans.

The high score in safety audit has several implications to aviation stakeholders. First, it gives confidence that one is safe while flying, that the aircraft in the country are safe too and therefore, one will fly with enough peace of mind. Aviation security also has a bearing to the overall safety in the country. With safety comes better productivity. In essence, aviation security is actually a contributor to the national productivity.

Improved safety also implies more investment coming to aviation. Of course, that will mean enhanced fleet acquisition. It is an indicator that Kenya is safe and ready for aviation business. Attracting more carriers to the country with all other accruing benefits is a desirable outcome that the country looks forward to.

Moving forward, Kenya Civil Aviation Authority has taken a deliberate move to keep improving on security and safety in order to enhance aviation sustainability. This is coupled with the environment, social and governance actions that KCAA has now committed to adhere moving to the future. As the sector regulator, KCAA will play a role in answering to the international clarion call of sustainability, that will continuously address environment, social and governance issues.

Source: The Standard

Ease of China travel ban a welcome relief for East African tourism

China’s decision to simultaneously lower restrictions for Covid-19 and resume regular international travel is being seen as a possible silver lining in East Africa’s quest to revamp its tourism industry.

Traditionally reliant on the West and each other, East African countries were specifically hurt during the Covid-19 pandemic as travel restrictions slowed down visits. The pandemic also hurt the region’s desire to expand tourism markets beyond the traditional sources, and China had been one of the identified new market.

Beijing announced it will be permitting overseas group tours beginning February 6, selecting Kenya for a trial phase.

Such group tours will be the first in three years of closed borders under China’s strict “zero-Covid” policy, which ended in December.

Group tours

Successful group tours could benefit Kenya and beyond.

In the East African Community, Kenya, Uganda and Rwanda already offer a single tourism visa, which would allow the Chinese visitors to tour these countries without additional immigration requirements.

Before the pandemic, some 155 million Chinese travel outside the country, signalling the importance of the Asian country as the biggest source market for tourists, accounting for nearly 10 percent of global tourists. The numbers have been paltry for the East African region, however, averaging 30,000.

According to the Tourism Sector Performance Report January-August 2022 by the Kenyan Ministry of Tourism and Wildlife, the country received six percent of the total 924,812 to visitors from China for the period, representing only 55,488 visitors.

Open outbound travel

Beijing had suspended overseas group tours in January 2020 amid the spread of Covid-19. Last week, Chinese authorities said in a notice that a pilot programme will allow travel agencies to open outbound group travel for Chinese citizens to 20 nations, including Kenya, Egypt and South Africa.

Other countries include Thailand, Indonesia, Cambodia, Maldives, Sri Lanka, the Philippines, Malaysia, Singapore, Laos, the United Arab Emirates, Russia, Switzerland, Hungary, New Zealand, Fiji, Cuba and Argentina.

Wang Wenbin, the Chinese Foreign Ministry spokesman, said last week that many countries have “extended a warm welcome” to Chinese tourists, and many Chinese are looking forward to traveling overseas.

Chinese visitors

“In 2019, Kenya received approximately 84,000 Chinese visitors, a small proportion compared to the millions of outbound Chinese tourists which resulted to development of a strategy to woo more visitors.

“I was among tour operators who were to implement it but Covid struck,” said Jonathan Mwangecho, a Kenyan tour operator.

A 2021 report by the World Tourism Organisation showed Chinese tourists were the biggest spenders in the world, with each tourist spending more than $1,250 per trip, which was almost 35 per cent higher than European tourists.

No marketing efforts

Kenya says it has not benefited from the outbound Chinese tourism boom due to a lack of marketing efforts in the Asian nation despite the country being granted Approved Destination Status for outbound Chinese tourist groups in 2004.

In the region, China was Tanzania’s lead market for tourists before the pandemic.

The notice asks local authorities to understand the trial programmer’s importance in rejuvenating the country’s tourism industry and how they must take good care of tourists.

In January, Kenya Tourism Cabinet Secretary Peninah Malonza and Chinese counsellor at the Chinese Embassy in Kenya Tang Jianjun launched a new Club of Sino-Africa Culture and Tourism to promote cross-cultural understanding, co-operation and people-to-people interactions.

Source: The East African

Ways to reduce air travel costs in East Africa

Arusha. Industry players have suggested how the prohibitive air fares in East Africa can be lowered.

These have to include total unification of air transport service or deliberate preference to local airlines registered rather than the international carriers.

A single air transport services agreement binding all seven East African Community (EAC) partner states is seen as a solution to the exorbitant costs and related challenges.

“It will lower the cost of air tickets for both passengers and cargo in the region,” said the East African Business Council (EABC) executive director, John Bosco Kalisa.

He made the appeal on Wednesday during a validation webinar for the recently concluded study on air transport services Liberalisation in the EAC bloc.

He challenged the EAC partner states to give “favourable treatment” to the EAC airlines in order to lower the fares through proximity and economies of scale.

The study commissioned by EABC, an apex body of private sector associations in the region, aimed to seek ways to bring down air transport fares in the region.

Also incorporated in the study is TradeMark East Africa (TMEA), an organization funded by a range of development agencies with the aim of growing prosperity in East Africa through trade.

Mr Kalisa regretted that foreign airlines that connect to the region often enjoyed more “favourable treatment” than EAC airlines. “The region can start offering preferential and national treatment to EAC cargo planes to boost exports,” he pointed out.

Mr Kalisa further called on the EAC bloc to consider replacing the existing Bilateral Air Services Agreements (BASAs) with a single air transport services agreement “so as to lower the cost of air transport in the region.”

The study proposed a raft of proposals to lower the cost of air transport in the EAC through a review of the current taxes, levies, and related charges.

Limited liberalisation of air transport contributes to high flight ticket rates, and visa restrictions limit the movement of non-residents into the EAC region.

Other factors impacting the aviation sector in the region are limited infrastructure and a lack of standardized regulations.

Despite the challenges, air transport costs were described as an enabler of tourism and exports of horticulture, which are among the leading sectors in foreign exchange earnings for the EAC.

Charles Omusana, the principal economist with the EAC secretariat, said liberalisation of air transport services will contribute “to our greatest desire of growing intra-EAC trade.”

The preliminary findings also reveal cargo volumes have largely stagnated in the EAC region due to the high cost of air cargo and the lengthy bureaucracy involved in obtaining clearance.

This has led to some airlines’ scheduling delays and inadequate infrastructure at the EA airports, like cold rooms and route restrictions, making it difficult to access new markets.

The webinar expounded that the EAC partner states should fast-track the finalization and implementation of EAC regulations on the liberalization of air transport services in line with the EAC Common Market Protocol.

The preliminary findings of the study on air transport liberalization in the EAC show a percentage increase in passenger traffic leads to a 0.166 percent increase in tourism receipts.

Similarly, a percentage increase in freight carrier departures leads to a 0.299 percent increase in tourism receipts.

At the same time, preliminary findings of the study show the percentage increase in air passenger traffic leads to a 0.05 percent increase in Gross Domestic Product (GDP).

This is achieved through an increase in trade, tourism, inbound investment, production, and employment.

In the meantime, air transport liberalisation in the EAC countries could result in an additional 46,320 jobs and $ 202.1 Million per annum in GDP.

Skyrocketing air transport costs have been a matter of concern in the EAC bloc for years.

The EABC has agitated countless times for a review of aviation taxes, levies, and charges so as to make the mode of transport affordable.

High air transport costs in the EAC are blamed for frustrating aviation-dependent sectors such as tourism and the export of fresh produce.

At the regional level, the domestic air transport sector remains protected in contravention of the EAC Common Market Protocol.

The air transport market in the EAC was also still under what is described as “tight regulation and control” by the governments.

This is believed to have denied fair competition among the operators within the bloc, now with seven partner states.

Expensive air tickets in the EAC have emerged at the plenary sittings of the East African Legislative Assembly (Eala).

Source: The Citizen

Nairobi to end state support for Kenya Airways in 4Q23

The Kenyan government is developing a financing strategy for Kenya Airways (KQ, Nairobi Jomo Kenyatta) that will end its reliance on state support by the end of December 2023, according to a brief note in its draft 2023 Budget Policy Statement.

“To support the aviation industry, the government will develop a turnaround strategy for Kenya Airways. A critical plank of this strategy will be a financing plan that does not depend on operational support from the exchequer beyond December 2023,” the statement reads.

Meanwhile, the technically insolvent flag carrier will receive state support of KES34.9 billion shillings (USD283.2 million) this year after the government earlier pledged continued financial aid in FY2022/23 to prevent defaults for the settlement of lessors’ arrears and working capital support. Since June 2022, Kenya Airways has been undergoing restructuring – financed with state loans that will have to be repaid – focusing on fleet and network simplification, staff rationalisation, cost management, labour agreement overhauls, ancillary business and strategic partnerships.

In May 2022, the government approved a state loan of KES20 billion shilling (USD173.9 million), and the airline borrowed another KES11.3 billion (about USD95 million) in the half-year ending June 30, 2022. This followed loans of KES11 billion (USD95.2 million) in 2020 and KES14 billion (USD121.1 million) in 2021.

The Kenyan government, in the meantime, is looking for a cash-rich foreign airline to take Kenya Airways off its hands. President William Ruto reportedly pitched a plan to Delta Air Lines (DL, Atlanta Hartsfield Jackson) during a visit to the United States recently.

Source: Ch-aviation