5 key trends for air travel in 2024

A record-breaking 2023 for international passenger traffic at Cape Town International Airport (CTIA) heralded a very positive start to 2024 and all expectations are that growth will continue throughout the year. As we look to build on this impressive achievement, it is vital to take note of the key trends that are expected to shape the aviation industry in 2024.

The race to meet demand

Globally, the air travel industry has made impressive headway in 2023 with many airlines and airports showing robust growth, driven by strong passenger demand, and supported by extensive destination marketing initiatives.

In turn, capacity has struggled to keep up. The shortage of new aircraft has been exacerbated by manufacturers delaying delivery of newer models due to supply chain issues, forcing the industry to turn to leasing companies to fill gaps in the interim.

In addition, the conflicts in Eastern Europe and the Middle East have created global uncertainty with a knock-on effect of increased aviation fuel prices. This has led to carriers becoming more selective when choosing destinations, with a preference for routes with high returning yields. Staff acquisition will remain a challenge in 2024 with higher labour costs and training backlogs putting pressure on airlines and airports alike.

The local air travel industry is not immune to these challenges. For CTIA, the addition of new international and African carriers and routes as well as the returning peak season capacity saw the international terminal achieve record passenger numbers for 2023. Year-on-year growth equalled 48%, with 2.8 million two-way passengers processed, eclipsing the previous benchmark of 2.6 million recorded in 2019.

On the domestic front, year-on-year passenger growth for 2023 stood at 16% and it is expected that incremental capacity additions by the domestic carriers will stimulate growth, despite the expectation that passenger numbers will remain below 2019 levels this year.

Due to the exceptional international terminal growth, we hope to see much-needed infrastructure expansion at CTIA, with an announcement on plans expected soon. Another interesting development in the local aviation space is the recently announced development plans for a privately owned Cape Winelands Airport.

Finally, to make South Africa’s tourism target of 21 million visitors by 2030 a reality, growth and accessibility should be supported by the pending release of the National Aviation Policy by the Department of Transport (DoT).

The hope is therefore that a less restrictive stance on especially international Air Service Agreements will be adopted. These treaty-level agreements outline, for instance, the number of flights that can be operated between countries. Should these agreements remain restricted or outdated, it may lead to stagnation of passenger and cargo flows as well as missed economic growth opportunities for the country.

Promoting the African agenda

The Single African Air Transport Market (SAATM) is a key project of the African Union’s Agenda 2063, which aims to liberalise and unify African skies by promoting increased air travel and economic integration. Notable initiatives rallying behind the project include the International Air Transport Association’s (IATA) Focus Africa initiative and the SAATM Pilot Implementation Project (PIP). The success of SAATM will also be heavily influenced by the African Continental Free Trade Area (AfCFTA).

The Focus Africa initiative aims to promote collaboration, streamline operations, and enhance aviation infrastructure across Africa. Similarly, the PIP allows participating countries to identify challenges, assess feasibility, and fine-tune their regulatory environment. Even with these supporting initiatives, the African aviation sector has struggled to operationalise SAATM, and the African aviation sector has therefore not grown as fast as it could have.

By the end of 2023, 38 out of 54 African countries pledged participation in SAATM, representing more than 80% of Africa’s population. However, more still needs to be done as many issues remain like the absence of Fifth Freedom Traffic Rights between African countries or unnecessary costs and delays in issuing Foreign Operator Permits (FOPs).

However, with the implementation of AfCFTA, the United Nations expects that use of air freight across the continent will nearly double from 2.3 to 4.5 million tonnes per year. The increased use of air freight for intra-African trade across the continent will surely drive the need for a successful SAATM initiative.

As the continent strives for greater air travel integration, addressing accessibility challenges and fostering a spirit of collaboration will be crucial in ensuring the sustained growth and success of SAATM.

Air cargo’s stabilising trajectory

The global air cargo market has experienced a strenuous 2023 as demand flattened while rates and revenues declined throughout most of the year. Adding to the pressure is the continued imbalance in supply and demand with air cargo capacity outstripping volumes, the exact opposite of the passenger market.

According to Accenture, air cargo capacity increased by 7% year-on-year in 2023 whilst volumes stood at negative 10% between January and October 2023. The increase in supply was mainly driven by the return of belly-freight capacity in widebody passenger aircraft, which is set to continue this year.

On the demand side, almost all air trade industries recorded steep volume declines for the first 10 months of 2023 with the only growth experienced in temperature-controlled goods, especially seafood and fruit.

However, towards the end of 2023, both yields and demand saw significant increases in the global air cargo market. According to DHL, the surge can be attributed, in part, to a booming e-commerce sector in Asia and the increased use of air cargo by retailers. This is echoed by Accenture which estimates that global cross-border e-commerce growth reached 40% in 2023 vs 2022, making up 9% of international air trade (up from 6% in 2022). In addition, IATA predicts that air cargo volumes will rise by 4.5% in 2024.

It is expected that the air cargo market will stabilise along with an equilibrium of supply and demand in 2024, However, external factors including global conflict could negatively influence or hamper the growth of the industry. Despite this, the recent diversion of container vessels around Africa could present an opportunity for increased air cargo volumes, in the short term, if businesses choose to avoid long shipping delays.

Closer to home, the congestion experienced at the Port of Cape Town has caused air cargo volumes to increase at CTIA, with many airlines reporting positive increases in air cargo volumes over December and January. Exporters and shippers of high-value fruit and perishables will continue to look for alternatives in 2024 of which air cargo, although more expensive, is a viable option.

Growth is on the horizon for the market however the question remains; is the air cargo supply chain – and the current infrastructure in South Africa – mature enough to absorb and adapt to the budding growth? If not, one might expect some teething issues and steep learning curves which could result in lost opportunities. However, for companies ahead of the curve great growth prospects are available this year.

A shift towards tangible sustainability

Although sustainability has been a hot topic for the better part of three decades, the aviation industry – as a 2% contributor to global carbon emissions – is finding itself under exponential pressure and scrutiny to reduce emissions as we draw nearer to the Net Zero Emissions by 2050 goal.

The biggest intervention to emerge is the introduction of Sustainable Aviation Fuels (SAF), as a replacement for fossil fuels, and airlines are likely to increase their investment in production and usage. Simultaneously, airports are expected to collaborate with energy providers and invest in the necessary facilities for the production, storage, and distribution of SAF.

Establishing a robust SAF infrastructure is crucial for ensuring a steady and scalable supply of eco-friendly fuels. South Africa is well poised to be a potential market leader in this field if enough government and industry support can be garnered.

Sustainable practices in aircraft design and manufacturing are expected to be prioritised. Lightweight materials, advanced aerodynamics, and innovative manufacturing processes will be leveraged to create more fuel-efficient and environmentally friendly aircraft.

Moreover, carriers are examining airport sustainability when planning their network operations. Airlines are likely to prioritise partnerships with airports that demonstrate a commitment to environmentally responsible practices. One key trend shaping the sector in this regard is the accelerated adoption of electric ground-handling vehicles to reduce emissions and noise pollution on airport premises.

Sustainability trends in aviation are grounding the “head in the clouds” perspective, with a greater propensity towards more tangible and cross-cutting solutions. The industry’s commitment to these initiatives reflects a collective effort to address environmental challenges and pave the way for a greener and more sustainable future in aviation.

The transformative effects of innovation

The global aviation sector is undergoing transformational developments, focusing on efficiency, sustainability, and passenger experience. In Africa, innovation is largely driven by critical infrastructure development and increased air connectivity. The integration of airports into urban planning to create more interconnected cities is also taking centre stage.

Digital technologies are increasingly being used in the industry to streamline operations, enhance passenger experiences, and boost efficiency. This includes the use of artificial intelligence (AI), data analytics, and the Internet of Things (IoT). The aviation sector is also advancing with the development of electric aircraft and autonomous flight technology.

African aviation is also embracing digitalisation and e-commerce solutions with airports like Addis Ababa Bole International Airport currently developing the largest e-commerce facility on the continent. It is immensely important for airports and destinations alike to future-proof themselves by adopting international best practices.

The importance of integrated planning when developing existing or new airport infrastructure within city boundaries is of utmost importance to create a sought-after and sustainable destination.

For instance, the “20-minute city” concept aims to create urban centres with all essential services within a 20-minute commute, promoting economic growth and shortening travel times. Major cities are investing in technology and infrastructure to achieve this. The air travel landscape is also reshaping itself by incorporating multimodal transport options, like airports incorporating high-capacity, land-based, public transport options for efficient connectivity within and between cities.

These actions underscore a commitment to creating more connected, sustainable, and economically vibrant aviation and destination ecosystems that benefit both passengers and the communities they serve by implementing the latest innovative technologies.

The global aviation industry in 2024 will be characterised by robust growth and a focus on innovation and sustainability, despite some persistent challenges. Ongoing issues such as infrastructure constraints and supply chain disruptions will become more prominent as efforts to expand capacity and streamline operations remain a key focus. Initiatives like SAATM aim to promote integration and open skies across the African continent while the sustainability agenda drives investments in eco-friendly fuels, aircraft design, and airport infrastructure.

Innovation, a buzzword in every sector, is set to reshape the aviation landscape, promising more efficient and connected travel experiences. If the aviation sector can remain poised in the balancing act of addressing challenges through innovation, then we expect that record-breaking numbers will only continue to climb in the years ahead.

Source: Biz Community

Celebrating Collaboration: KATA’s Perspective on the Visit of Jordanian Minister of Tourism

Kenya Association of Travel Agents (KATA) warmly received a special invitation to a dinner in honor of the official visit by Jordanian Minister of Tourism, Makram Mustafa Queisi. Among the esteemed attendees were Dr. Joseph Kithitu, Chairperson of KATA, and CEO Nicanor Sabula, alongside John Chirchir, CEO of Kenya Tourism Board (KTB).

The visit of Jordanian Minister of Tourism presents an exciting opportunity for both Kenya and Jordan. The emphasis on “mutual growth” and “enriching experiences” suggests a collaborative approach that benefits both tourism industries. This could involve joint marketing campaigns, exchange programs for tourism professionals, and the development of multi-destination itineraries combining the unique offerings of both nations.

At its core, tourism serves as a bridge between people and nations. This partnership has the potential to promote global understanding and appreciation for different cultures and environments. By fostering connections between individuals, it creates lasting memories and friendships beyond borders. KATA is committed to ensuring mutual collaboration between Kenya and Jordan, facilitating seamless travel policies and enhancing the partnership between the two nations.

In celebrating this collaboration, KATA looks forward to the shared prosperity and cultural exchange that will enrich the travel experiences of visitors from both Kenya and Jordan.

Join us in Discovering the Beauty, Culture, and History of Ethiopia.

Ethiopia’s rich history is on full display during “Tir”,(“Tir” is the fifth month in the Ethiopian Calendar, which similarly hits upon January in the Gregorian Month.) with traditional weddings taking place throughout the month. Harvesting festivities abound, and horse riders flourish in their displays of skill. The diverse regions of Ethiopia each contribute their unique cultural elements – from the densely forested West to the shining camels of the East, the South resonates with the melodic songs of elephants, and the Northern mountains echo with tales of times past. The sun graces the land from dawn to dusk, illuminating the landscapes that are teeming with life. The coffee fields are abuzz with activity as farmers diligently pick the beans, a testament to Ethiopia’s status as the birthplace of coffee.

The water towers of Ethiopia proudly stand as symbols of the country’s strength and resilience, their significance deeply ingrained in the nation’s history. Ethiopia, often called as the Land of Origins, welcomes you to explore its wonders, where every cup of coffee brewed holds the timeless story of the boy Kalid.

ET-Holidays, your guide on this enchanting journey through Ethiopia, is excitingly inviting all nature lovers with a special flight package and arrangements. Don’t miss the opportunity to be part of the magic that Tir 2016 has to offer. Pack your bags, and let Ethiopia unfold its wonders before you.

For more information ,please contact Ethiopian Holiday Team or Nairobi office on the below address.

Website:  https://www.ethiopianholidays.com

Email : nbocto@ethiopianairlines.com/nbosr@ethiopianairlines.com

Tel: 0701 223970/ 0723 786649 / 0701223493

Over 40,000 Kenyan Tourists Visited South Africa in 2023.

By Bryan Obala- Kenya Association of Travel Agents

In a remarkable surge, South Africa’s tourism sector witnessed a significant influx of Kenyan tourists in 2023, with over 40,000 visitors from Kenya choosing to explore the vibrant landscapes and rich cultural heritage of the Rainbow Nation.

This impressive growth can be attributed to the strategic decisions taken by both the Kenyan and South African governments to relax visa regulations in 2022, facilitating seamless travel between the two nations. The introduction of simplified visa procedures made it easier for Kenyan travelers to experience the diverse attractions that South Africa has to offer.

Working in tandem with South Africa Tourism, the Kenya Association of Travel Agents (KATA) played a pivotal role in promoting travel to South Africa for both leisure and business purposes. Through collaborative efforts, KATA and South Africa Tourism have effectively showcased the unique experiences and attractions awaiting travelers in South Africa, enticing Kenyan tourists to explore this captivating destination.

Minister of Tourism, Patricia de Lille, expressed delight at the substantial increase in Kenyan tourist arrivals and acknowledged the positive impact of the relaxed visa regime on tourism growth. She emphasized the importance of continued collaboration between government bodies and industry stakeholders to further enhance travel opportunities and promote sustainable tourism development.

Looking ahead, Minister de Lille underscored the need to address remaining barriers such as visa regulations and limited air access to ensure sustained growth in tourist arrivals. She reiterated the government’s commitment to working closely with partners and stakeholders to facilitate policy and regulatory reforms that will support the growth of the tourism sector.

In conclusion, Minister de Lille extended her gratitude to all visitors for choosing South Africa as their preferred destination and expressed appreciation to the people of South Africa for their warm hospitality. With optimism for continued growth and development, she emphasized the timeless charm and allure of South Africa as a premier tourism destination.

Experience South Africa: Your Gateway to Unforgettable Adventures!

No need to travel abroad as Kenya launches new initiatives to attract tourists.

As part of this visionary endeavor, the Kenya Tourism Board (KTB), the country’s marketing agency, revealed that its target is boosting tourist arrivals from West Africa by promoting business and leisure travel.

Acting KTB Chief Executive Officer John Chirchir emphasized the significance of this “West Africa Roadshow” program during a meeting marking the beginning of a series of roadshows in Nigeria and Ghana.

Chirchir highlighted the integral role of the West African market in the strategy to attract tourists, with Nigeria (6%) and Ghana (48%) showing the biggest improvements among Kenya’s potential markets in tourist arrivals in 2023.

With ambitious aspirations, KTB and Kenya Airways are leading over 15 travel trade companies for in-market activations scheduled for Feb. 5-9 in various cities of Nigeria and Ghana, expecting to attract over 400 trade partners.

Chirchir also expressed optimism that the Kenyan traders would engage in business meetings and direct interactions with potential travelers from Lagos, Abuja, and Accra.

He noted that regular flights between African cities, ease in travel restrictions, and the Electronic Travel Authorization will make it easier for visitors to access Kenya.

Speaking passionately during the meeting, Consaga Khisa, chairperson of the West Africa Roadshow, underscored the rationale behind prioritising domestic travel and the importance of partnerships between KTB and the private sector in improving tourism arrivals in Kenya.

“The roadshows will provide an opportunity for the Kenyan trade to engage with about 400 West African travel agents and tour operators, showcase products and service offerings, and forge new partnerships to drive growth,” Khisa said.

Reports from Kenya’s Tourism Research Institute showed that arrivals from Africa accounted for 651,152 visitors, or 40.7 per cent, of total arrivals from January to October 2023. In the competitive landscape of African tourism, neighbouring countries like Rwanda, Benin, The Gambia, and Seychelles have eliminated all visa requirements for African travellers to attract visitors.

 Source: Business Insider.

IATA : Global Air Travel Demand Continued Its Bounce Back in 2023

The International Air Transport Association (IATA) announced that the recovery in air travel continued in December 2023 and total 2023 traffic edged even closer to matching pre-pandemic demand.

•    Total traffic in 2023 (measured in revenue passenger kilometers or RPKs) rose 36.9% compared to 2022. Globally, full year 2023 traffic was at 94.1% of pre-pandemic (2019) levels. December 2023 total traffic rose 25.3% compared to December 2022 and reached 97.5% of the December 2019 level. Fourth quarter traffic was at 98.2% of 2019, reflecting the strong recovery towards the end of the year.

•    International traffic in 2023 climbed 41.6% versus 2022 and reached 88.6% of 2019 levels. December 2023 international traffic climbed 24.2% over December 2022, reaching 94.7% of the level in December 2019. Fourth quarter traffic was at 94.5% of 2019.

•    Domestic traffic for 2023 rose 30.4% compared to the prior year. 2023 domestic traffic was 3.9% above the full year 2019 level. December 2023 domestic traffic was up 27.0% over the year earlier period and was at 2.3% above December 2019 traffic. Fourth quarter traffic was 4.4% higher than the same quarter in 2019.

“The strong post-pandemic rebound continued in 2023. December traffic stood just 2.5% below 2019 levels, with a strong performance in quarter 4, teeing-up airlines for a return to normal growth patterns in 2024. The recovery in travel is good news. The restoration of connectivity is powering the global economy as people travel to do business, further their educations, take hard-earned vacations and much more. But to maximize the benefits of air travel in the post-pandemic world, governments need to take a strategic approach. That means providing cost-efficient infrastructure to meet demand, incentivizing Sustainable Aviation Fuel (SAF) production to meet our net zero carbon emission goal by 2050, and adopting regulations that deliver a clear cost-benefit. Completing the recovery must not be an excuse for governments to forget the critical role of aviation to increasing the prosperity and well-being of people and businesses the world over,” said Willie Walsh, IATA’s Director General.

CARGO

The International Air Transport Association (IATA) released data for global air freight markets showing that air cargo demand rebounded in 2023 with a particularly strong fourth quarter performance despite economic uncertainties. Full-year demand reached a level just slightly below 2022 and 2019.

Global full-year demand in 2023, measured in cargo tonne-kilometers (CTKs), was down 1.9% compared to 2022 (-2.2% for international operations). Compared to 2019, it was down 3.6% (-3.8 for international operations).

Capacity in 2023, measured in available cargo tonne-kilometers (ACTKs), was 11.3% above 2022 (+9.6% for international operations). Compared to 2019 (pre-COVID) levels, capacity was up 2.5% (0.0% for international operations).

December 2023 saw an exceptionally strong performance: global demand was 10.8% above 2022 levels (+11.5% for international operations). This was the strongest annual growth performance over the past two years. Global capacity was 13.6% above 2022 levels (+14.1% for international operations).

Some indicators to note include:

Global cross-border trade recorded growth for the third consecutive month in October, reversing its previous downward trend.

December inflation in both the United States and the EU as measured by the corresponding Consumer Price Indices (CPI) stayed below 3.5% year-on-year. China’s CPI, however, indicated deflation for the third consecutive month, raising concerns of an economic slowdown.

Both the manufacturing output and new export order Purchasing Managers Indexes (PMIs) – two leading indicators of global air cargo demand—continued to hover below the 50-mark in December, usual markers for contraction.

“Despite political and economic challenges, 2023 saw air cargo markets regain ground lost in 2022 after the extraordinary COVID peak in 2021. Although full year demand was shy of pre-COVID levels by 3.6%, the significant strengthening in the last quarter is a sign that markets are stabilizing towards more normal demand patterns. That puts the industry on very solid ground for success in 2024. But with continued, and in some cases intensifying, instability in geopolitics and economic forces, little should be taken for granted in the months ahead,” said Willie Walsh, IATA’s Director General.

Source: Travel and tour world.

2024 Amadeus report: Global business travel booms with new trends & tech.

2024 marks a rebound in business travel, shaped by new trends and tech for enhanced value, as explored in the “Global Business Travel Trends 2024″ report.

This year is poised for a resurgence in corporate travel spending, reaching levels reminiscent of those in 2019. The landscape of business travel has evolved considerably over the past five years, with today’s business travelers demanding more value and benefits from each journey. Emerging technologies, particularly in the realm of Generative AI, are playing a crucial role in enhancing the overall travel experience.

The latest insights into these developments are highlighted in the “Global Business Travel Trends 2024” report, a collaborative effort by Globetrender and Cytric Easy from Amadeus. The report identifies seven key trends that are expected to redefine the corporate travel experience in 2024, including AI-powered personal assistants, executive outdoor retreats, and innovative strategies like “Objective Stacking.”

Revolution in Self-Managed Travel with AI Personal Assistants

The rise of Generative AI is transforming the way corporate travelers plan their trips, introducing AI Personal Assistants that offer round-the-clock support. These digital assistants can assist with everything from suggesting travel itineraries to helping travelers adhere to company policies, all through user-friendly, conversational interfaces.

The Emergence of Executive Outdoor Retreats

The concept of team-building activities is evolving into more extensive, nature-based retreats that offer a range of engaging and sometimes challenging experiences. These retreats aim to build team spirit and loyalty, taking participants out of their comfort zones with activities like rafting and wilderness survival.

Maximizing Business Travel Value with “Objective Stacking”

As companies face growing pressures to be financially and environmentally responsible, employees are expected to justify the necessity of their business trips. The concept of “Objective Stacking” involves planning trips to achieve multiple objectives, thereby increasing efficiency and value.

Blended Itineraries Take Precedence Over Strict Travel Policies

2024 sees a shift towards more flexible and personalized corporate travel policies, allowing for blended itineraries that combine business and leisure elements. This approach prioritizes the traveler’s experience and well-being.

Corporates Strive for Net Zero Emissions with Sustainable Travel Strategies

Following the COP28 agreement, companies are increasingly committing to sustainability goals. The travel industry is no exception, with strategies like “Objective Stacking” and flexible travel policies aiding in reducing carbon emissions.

Advancements in Digitized Expense Management

The shift towards digital expense management and virtual cards represents a significant change in corporate finance, simplifying processes and enhancing security and compliance.

Power Networking: Making the Most of Global Events

The focus is now on maximizing every opportunity at conferences and events, with a shift towards more purposeful networking and richer itineraries that extend beyond the main agenda.

Globetrender CEO Jenny Southan and Amadeus Cytric Solutions’ Deborah Mahoney emphasize the importance of discernment in business travel, balancing the need for in-person interactions with financial and environmental considerations. The future of corporate travel is marked by technological advancements and a return to basics, highlighting the significance of human connections and optimized travel experiences.

Source: Travel and tour world.

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.

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.

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.