Artificial Intelligence (AI) has the potential to power Kenya Airways (KQ) to recovery. Widespread use of technology is beginning to influence how consumers are treated and make organisations understand their needs.

This is because AI-powered chatbots provide personalised and immediate assistance to every client. As a result, airlines become more productive.

AI evaluates travellers’ data and provides personalised travel experiences in the airline sector. Because of this new area that AI has brought into the business, KQ can be on track to recovery.

And as the economy is trying to recover from the effects of the pandemic, the aviation industry must learn how to manage consumer and employee-labour relationships.

A healthy work environment fosters a culture of creativity and excellence.

A look at the industry reports in 2022, the airline moved 65,000 tonnes of cargo, increasing tonnage by 3.5 percent.

In addition, by the end of 2022, 10.3 billion Available Seat Kilometers (ASKs) were deployed, up 75 percent from the 5.9 billion reported over the same period in 2021.

Because of this, passenger load factors in 2022 were just 3.9 percentage points lower than those attained in 2019 before the pandemic.

In 2022, KQ’s revenue increased by 66 percent to Sh117 billion. In addition, passenger numbers were up 68 percent to 3.7 million compared to 2021. All these indicators show that KQ is on a recovery path.

Despite all these stellar performances given the challenges that affected the industry, there are clear signs that it has some work to do to lower operating costs that went up by 93 percent due to escalating fuel costs, forex losses, volatility of the shilling and the financial restructuring.

Further, a strategy to leverage technology for more remarkable productivity improvement is imperative. AI, for example, will assist in regaining consumer confidence, reducing costs, and improving operational efficiency.

It is also time to review its European strategy if the current partnerships restrict its expansion to directly compete with other African carriers.

A flexible partnership strategy with other airlines, travel companies, and airports is more desirable to expand its customer base, improve efficiency, and cut costs.

It is not clear why the airline’s Europe presence is limited to a few cities compared to its African rivals such as Ethiopian Airlines.

Like other airlines globally, KQ should invest in new technologies to improve safety, efficiency, and customer experience.

For example, biometric facial recognition and fingerprint scanning technologies streamline check-in and boarding processes.

Further, it will help reduce wait times and enhance security. In addition, intensify the use of self-service kiosks, mobile apps and a robust online booking platform.

Even though there are similar challenges facing the entire airline industry, according to the International Air Transport Association (IATA), the sector expects a return to profitability next year as airlines continue to reduce losses stemming from the effects of the Covid-19 pandemic.

Some of the airline’s challenges that are being looked into are the restructuring of its financial arrangements, which requires broader support from the government.

For instance, the government of the United States gave the aviation sector $50 billion in grants and loans in March 2020 through the Coronavirus Assistance, Relief, and Economic Security (CARES) Act.

Similar policies have also been adopted by other nations, such as offering airlines grants or low-interest loans to aid them with operational costs and staff retention.

Governments have yet to take steps to boost the aviation sector more generally, such as lowering taxes and fees for airlines and investing in airport facilities to promote the resumption of air travel.

With the slow recovery of air travel demand, these actions are meant to assist airlines in recovering from the pandemic and resuming sustainable operations.

We learn from others. Emirates Airlines, for example, has played a significant role in promoting Dubai as a popular tourism destination.

In addition, the airline’s marketing initiatives have contributed to developing a favourable perception of the UAE as a modern, cosmopolitan nation.

The sight of KQ in foreign airports evokes nostalgia and a sense of pride in many Kenyans. In it lies an excellent opportunity to leverage its branding potential to revive our tourism sector.

The country stands to benefit from KQ’s success as it contributes to the branding of Kenya. It symbolises Kenya’s identity and culture, and we must ensure its recovery.

Investment in technology precipitates greater profitability in the days to come.

Source: Business Daily

Air Malawi has re-introduced flights between Lilongwe and Nairobi.

Malawi Airlines is now offering customers more options and more destinations with the re-introduction of flights between Malawi and Kenya.

The airline restarted its scheduled service between Lilongwe Kamuzu International (LLW) and Nairobi Jomo Kenyatta International (NBO). Malawi Airlines has also re-introduced Friday NBO flights between the two destinations.

The first flight ET51, which was operated on a Boeing 737-800, took off from NBO at 06:33 and arrived at LLW around 07:30. The flights from Malawi will be operated on Wednesdays, Fridays, and Saturday. Meanwhile, the return flights will be operated on Thursdays, Saturdays, and Sundays.

Connecting Southern Africa to Kenya

Jomo Kenyatta Airport is among the busiest airports in Africa, connecting many Africans to the rest of the world. Recently, Kenya and South Africa removed visa requirements for their citizens, which gives Kenyans easier access to Southern Africa. Furthermore, adding flights on the LLW-NBO route will provide a convenient connection for Malawians and other Southern Africans to Europe, Asia, and North America.

Malawi Airlines was formerly known as Air Malawi and then Malawi Airlines until 2016. It was established as a joint venture between the Malawian government and Ethiopian Airlines, so its flights use the code ET. It is the flag carrier of Malawi; however, Ethiopian Airlines operates it under a management contract and owns a 49% stake.

The airline continues spreading its wings and offers flights to popular destinations like Johannesburg and Dar es Salaam. Its partnership with Ethiopian Airlines allows frequent flyers to earn and spend rewards on Malawi Airlines flights.

The airline had been recording losses since 2014 but has been profitable since 2021. As it has recovered from the effects of the pandemic, it has maintained its reputation for providing quality services around Southern Africa. Malawi Airlines currently has a fleet of three aircraft; two B737s and one DHC-8-Q400.

Connecting Africa with International Markets

The resumption of flights between LLW and NBO will boost intra-Africa connectivity. It comes at a time when stakeholders are making efforts to boost flights within Africa by African airlines. Kenya Airways and Astral Aviation also operate flights on this route.

In addition to intra-Africa air travel, airlines continue enhancing their international networks. As the world has opened up, we are seeing numerous African airlines flying to new destinations beyond the continent and the re-introduction of previously popular routes.

Jomo Kenyatta Airport is set to see more activity as another airline plans to connect it with international markets. Nairobi-based Astral Aviation seeks to spread its wings to Abu Dhabi, connecting Kenya with the Middle East. Following a codeshare agreement with Kenya Airways Cargo, the carrier has now signed a memorandum of understanding with Etihad Cargo.

Ethiopian Airlines is no stranger to the international market, which it continues to explore. Earlier this week, the carrier relaunched flights between Addis Ababa Bole International (ADD) and Singapore Changi International airports (SIN).

After ceasing flights due to the pandemic, Ethiopian Airlines returned to Singapore and received a warm welcome. The airline will operate four weekly flights between the two destinations. Singapore is one of the world’s financial hubs, so the resumption of these fights will boost trade and tourism between Africa and Asia.

Source: Simple Flying

(Reuters) – Global carriers warned on Monday that concerns over blocked airline funds in Africa and elsewhere could lead to interruptions in air services if there is no progress in talks to unfreeze money owed.

About $1.6 billion of funds are being withheld in various Africa countries due to currency shortages or other problems, the International Air Transport Association said in a briefing on the launch of an initiative to boost African aviation.

“The people who suffer as a result of these blocked funds are consumers in these markets, because you cannot expect airlines to continue to provide services if in effect they’re not being paid,” IATA Director General Willie Walsh said.

The issue of airline funds’ being blocked in some countries where carriers operate has been rising as demand for hard currency outpaces supply, with IATA stepping up efforts to whittle down a deficit that grew 25% in the last six months of 2022 alone.

According to the Geneva-based body, which represents most of the world’s major airlines, Nigeria tops the list of countries holding back funds, with Algeria and Ghana also involved.

A total of $2.4 billion is being blocked worldwide.

Nigeria faces severe shortages of foreign currency, meaning airlines cannot easily convert local currency to repatriate revenues earned from ticket sales by foreign airlines.

Aviation Minister Hadi Sirika has said he can only continue to urge the central bank to make dollars available to airlines.

A spokesperson for the Central Bank of Nigeria did not immediately respond to a request for comment on Monday.

About half the $1.6 billion frozen in Africa is tied up in Nigeria, RwandAir Chief Executive Yvonne Makolo told the IATA briefing.

Makolo, designated as the next chairperson and first female leader of the board of the influential IATA, also called for faster progress towards setting up a common aviation market in Africa.

Efforts to liberalise flying, echoing Europe’s single aviation market, have been under discussion since a landmark treaty known as the Yamoussoukro Declaration in 1988, which was updated 11 years later.

Supporters say liberalising frequencies, fares and capacity would lift barriers that in the past have increased costs.

But despite a fresh initiative by the African Union to create a single African air transport market (SAATM) in 2018, backed by more than 30 states, implementation has been slow.

Analysts say some carriers fear they would be exposed in a market already pinched by competition from the Gulf and Turkey.

Makolo said freeing up the movement of goods and people by air would support the flagship African Continental Free Trade Area (AfCFTA), which the World Bank estimates could lift tens of millions out of poverty by 2035.

“It’s an exciting opportunity for the continent, which we really need to take advantage of as quickly as possible,” she said.

Africa’s aviation market is recovering faster from the pandemic than the overall industry but is expected to remain in loss, due in part to higher costs and weak infrastructure.

Traffic is expected to double by 2035, IATA said.

Source: Reuters