WTTC G20 Public-Private Dialogue shines light on Travel & Tourism opportunities

The World Travel & Tourism Council (WTTC) gathered leading Travel & Tourism stakeholders and G20 Ministers in a Public-Private Dialogue in Goa to address the sector’s vast potential and challenges.

Joined by India’s Minister of Tourism, the Hon. G. Kishan Reddy, and UNWTO Secretary-General Zurab Pololikashvili, Julia Simpson, WTTC President & CEO commended India’s Ministry of Tourism for its leadership during India’s G20 Presidency and highlighted Travel & Tourism’s substantial contribution not only to the global economy but to employment.

Currently representing 9.2% of the world’s GDP and supporting one in every 11 jobs globally, the sector is experiencing remarkable growth, outpacing the global economy by growing twice as fast.

Julia Simpson, WTTC President & CEO, said: “It is proven where governments and the private sector work together in Travel & Tourism the economy is stronger, jobs are created, and people get to enjoy and understand other cultures. Together, businesses and governments can build back a better, stronger, and more resilient sector. Governments also heard first-hand the value of having streamlined visa processes, digital borders, and a strong focus on sustainability. We need each other to achieve this”.

During her address, Simpson emphasised the opportunities for investors, governments, and society to achieve the Sustainable Development Goals (SDGs) through collaboration.

India’s impressive expansion in Travel & Tourism was praised as a prime example.

The sector is projected to contribute over INR 16.5TN to India’s economy this year, create 1.6MN new jobs, to reach a total employment figure of nearly 40MN people.

By the end of the decade, Travel & Tourism is forecast to contribute approximately 7% of India’s economy.

During the dialogue, Simpson addressed three key challenges facing the industry.

  1. Visa backlogs pose a significant obstacle, with excessive waiting times ranging from 200 days to a year for certain destinations. Investment in digital visas and biometrics, exemplified by Dubai Airport’s “smart gates”, is a successful example of technology streamlining travel processes
  2. Sustainable Aviation Fuel (SAF) plays a vital role in reducing carbon emissions, with the potential to cut emissions by up to 80% compared to traditional jet fuel. However, current production levels fall short and WTTC called on all G20 countries to conduct feasibility studies on SAF, to further facilitate decarbonisation
  3. Staff shortages resulting from the pandemic continue to be a challenge. Collaborative efforts between governments and the private sector, along with enhanced training programs and targeted support for women, young people, and high-wage jobs will be crucial in addressing this issue
    Simpson also highlighted the groundbreaking environmental and social research conducted by WTTC in collaboration with Saudi-based Sustainable Global Tourism Center.

This research offers comprehensive insights into the sector’s environmental and social impact, tracking data on wages, age groups, and gender, the research aims to drive progress towards the SDGs.

Simpson also underscored the potential of young people as a talent pool. With 65% of Indians under 35 years old, India’s G20 presidency recognises the need to address youth unemployment and create opportunities for this demographic.

New data from WTTC and the Sustainable Global Tourism Center also reveals that the sector experienced a 27.6% growth in youth employment between 2010 and 2019.

Despite dropping in 2020 to almost the same level it was a decade before in 2010, sector youth employment appears to be rebounding quickly.

The data also shows that Travel & Tourism’s share of youth employment has grown since 2010, from 6.4% in 2010 to 8.2% in 2021.

WTTC’s latest research highlights the importance for high-quality jobs that provide dignity in their work, to make the sector an attractive industry for young people to develop their long-term careers.

SOURCE: Traveldailynews

Record: Ethiopian Airlines Now Has 9 Weekly JFK & Newark Boeing 787 Flights

Ethiopian Airlines now serves New Jersey and New York nine-weekly, its highest frequency yet. On May 29th, it switched JFK’s one-stop from Lomé, Togo, to Abidjan, Cote D’Ivore, reverting to what it had in 2019.

Ethiopian to Newark & JFK

Africa’s largest airline inaugurated Newark in July 2016 and JFK in June 2019. Both are among the world’s busiest long-haul airports. While other aircraft have been used occasionally, they continue to revolve around the 270-seat Boeing 787-8.

The schedule is as follows, with all times local. The same plane, same flight number stopping service from Ethiopia to the US is the definition of a ‘direct’ route, with non-stops on the individual legs.

  • Addis Ababa-Lomé-Newark: 08:45-11:15, 12:45-19:45 (Tue, Thu, Fri, Sat, Sun)
  • Newark-Lomé-Addis Ababa: 21:45-11:50+1, 13:00-21:25 (Tue, Thu, Fri, Sat, Sun)
  • Addis Ababa-Abidjan-JFK: 09:00-12:00, 13:30-20:00 (Mon, Wed, Sat, Sun)
  • JFK-Abidjan-Addis Ababa: 22:00-11:35+1, 12:35-21:40 (Mon, Wed, Sat, Sun)

Addis-Lomé-Newark

Covering 7,761 miles (12,491 km) each way, this routing was first served in June 2016. Between May 2018 and June 2019, it had additional flights via Abidjan before again entirely routing via Togo.

Passengers can transit between Newark and multiple destinations in West Africa on flights operated by Ethiopian’s partner ASKY. According to Cirium data, Ethiopian codeshares to 12 places over Lomé, of which Lagos, Accra, Abuja, and Douala are probably the most important. They can also connect to numerous places over Addis, although for many, a two-stop option is less competitive.

Examining booking data suggests that passengers transiting over fellow Star Alliance carrier United’s Newark hub appear less important than might be expected, partly influenced by the arrival time of 19:45.

Addis-Abidjan-JFK

Some 116 miles (180 km) longer than its Newark routing, Addis-Abidjan-JFK covers 7,873 miles (12,670 km). Given the equipment used, I like the ‘787’ bit.

Flying via Abidjan means that Ethiopian does not benefit from the pretty extensive connectivity afforded by ASKY, but cannibalization with Newark reduces. It also serves Washington Dulles via Lomé.

Still, Ethiopian codeshares with Air Côte d’Ivoire to six places via Abidjan in July, including Accra and Lagos. However, the wait time in Abidjan from JFK is often many hours, raising the question of how popular this would be. It is much quicker and more competitive on the way back.

It seems it is happy to offset this by targeting the NY-Abidjan-NY point-to-point market, which booking data shows to have approximately 26,000 passengers in 2019. It is meaningfully larger than Lomé. And, like Newark, passengers can transit from JFK to multiple places over Addis, but, again, with two stops.

Six North American airports

Ethiopian’s North American passenger network is July sees Washington Dulles (10 weekly), Newark (five weekly), Toronto (five weekly), JFK (four weekly), and Atlanta (four weekly). The latter was inaugurated in May.

To overcome Addis Ababa’s high elevation – the airport is at 7,657 feet and more than a mile high – which limits aircraft performance on takeoff, all flights to North America stop en route. Most do so in Dublin. The exceptions are Lomé for Newark, Abidjan for JFK, and Dublin and Lomé for Dulles.

SOURCE: Simple Flying

Turkish Airlines Introduces Flight Tracker Digital Globe to Enhance Guest Experience

Turkish Airlines, the airline that flies to the more countries than any other in the world, made a new addition to its privileged services offered to guests in this rapidly evolving era of technology and digitalization where customer satisfaction has become increasingly important. The flag carrier has introduced the Flight Tracker digital globe for use in its Business Lounge, emphasizing the diverse and enjoyable aspects of digital channels, modernized with a solution oriented approach. With the Flight Tracker digital globe, guests will be able to track real-time locations of Turkish Airlines aircraft, flown destinations, current weather conditions, and experience the use of many different features such as flight information and Miles&Smiles membership. This technology, which is a result of extensive market research and presented for passengers’ appreciation, was launched with live flight information and destination data, along with a unique interface design exclusive to Turkish Airlines. On the new service of the flag carrier, Turkish Airlines Chief Marketing Officer Ahmet Olmuştur stated: “As Turkish Airlines, from the first day we were established, we have been working to provide our guests with a flawless travel experience, in addition to safety and comfort during their travels. With our new service, we offer our guests the opportunity to learn the weather of the destinations they will go to, and also the possibility to create a Miles&Smiles membership via QR code. We prepare and develop our solution alternatives according to the needs of our guests with the strength that the evolving and changing technology adds to our brand.” Turkish Airlines has raised the bar in its service approach by adding the Flight Tracker digital globe to its Business Lounge, where guests also enjoy spending time with the Hezarfen Flight Simulator, console games, a golf area and children’s play areas.
SOURCE: breakingtravelnews

Qatar Airways and Air Seychelles Sign Codeshare Agreement

Qatar Airways announces a codeshare agreement with Air Seychelles, the flag carrier of the Republic of Seychelles, allowing passengers on both networks seamless travel to one of the world’s most exotic and unique destinations.

Qatar Airways serves over 160 destinations worldwide and connects travellers from Africa, America, Asia and Europe easily to and from Seychelles through its hub in Doha, Hamad International Airport (HIA), currently named the ‘Best Airport in the Middle East’. Moreover, Qatar Airways Privilege Club members can also earn and spend Avios at almost 200 outlets at Qatar Duty Free (QDF).

Currently, Qatar Airways operates a daily flight between HIA and Seychelles International Airport (SEZ), located on the Island of Mahé, near the capital city of Victoria, with a morning arrival and evening departure from Mahé Island. Because of this new codeshare agreement, Qatar Airways will place its code on Air Seychelles’ operated flights between Mahé and Praslin and enable passengers to continue their journey conveniently using a single booking. Praslin is home to the pristine Vallée de Mai Nature Reserve and UNESCO World Heritage Site along with palm-fringed beaches, like Anse Georgette and Anse Lazio, both bordered by large granite boulders. Passengers can book their travel with both airlines, through online travel agencies, as well as with local travel agents.
 
Qatar Airways Group Chief Executive, His Excellency Mr. Akbar Al Baker, said: “Our strategy of facilitating connectivity to African markets through partnerships is in line with this enhanced cooperation with Air Seychelles. Our two airlines are pleased to work together to benefit passengers with more travel choices and to support the tourism industry in Seychelles.”

Air Seychelles maintains its domestic network with a fleet of five Twin Otter TurboProps operating between Mahé and Praslin as well as charter flights. The airline celebrated 45 years in October 2022 and won the title ‘Indian Ocean’s Leading Airline’ at the World Travel Awards held in Kenya.
 
Air Seychelles, Acting Chief Executive Officer, Captain Sandy Benoiton, said: “This new partnership will provide passengers with new connection opportunities and access to unique destinations from both networks.”


SOURCE: Breaking Travel News

Travel demand to remain strong despite recession concerns, WTTC chief says

Travel will remain strong on the back of robust demand in select emerging economies even
as a potential recession looms, a top executive at the World Travel and Tourism Council has
said.
“At the moment, the bookings we’re seeing are record breaking [and] when you survey
people, and you ask what are their most important needs in life, travel is now number three,”
Julia Simpson, WTTC president and chief executive, told The National in an exclusive
interview.
“We also have emerging middle classes. India is a massive growth market, China is an
incredible market [and] the Japanese market is coming back.”
The global travel and tourism sector is expected to reach $9.5 trillion in 2023, only 5 per cent
below 2019 highs, the WTTC reported.
Despite economic and geopolitical challenges, the industry grew 22 per cent to reach $7.7
trillion last year.
An aggressive return to travel post-Covid-19 has resulted in bottlenecks and delays,
particularly in the aviation industry.
The sector has also been facing severe staffing shortages following the lifting of pandemic-
related restrictions last year.
“Demand is outstripping supply … the airlines at the minute can only fly 80 per cent of their
capacity because there’s a backlog in the number of planes that people can buy and also in
some parts of the world, there are some labour shortage pressures,” said Ms Simpson.
“We’ve got people that may have left the sector [and] not all of them have come back,
although that is beginning to improve.”
Global passenger traffic rebounded to 15 per cent below its pre-pandemic levels in February,
led by airlines in the Asia-Pacific region, which recorded the fastest growth, the International
Air Transport Association said in a report last month.
Total passenger traffic worldwide increased by 55.5 per cent on an annual basis in February,
despite the uncertainty hanging over the global economy, Iata said.
The global economy faces a “rocky” recovery as geopolitics, monetary tightening and
inflation continue to weigh on growth, the International Monetary Fund said last month.
The IMF lowered its global economic growth estimate for this year by 0.1 percentage points
to 2.8 per cent, from what it previously projected in January, with the estimate below the 3.4
per cent expansion recorded in 2022 and the historical growth average of 3.8 per cent from
2000 to 2019.

High inflation could also pose a risk to the travel and tourism industry’s recovery, Ms
Simpson said.
Although airports and airlines try to avoid passing higher costs on to their customers, “it has
to be paid for” at the end of the day.
“That is why you will see some higher fares in the market and also higher prices in hotels,”
she added.
Meanwhile, Ms Simpson also called for an increase in sustainable aviation fuel
production using economic incentives.
SAF, which is made from resources such as agricultural waste, green hydrogen and cooking
oil, is widely considered to be the most significant contributor to helping the sector reach its
net-zero emissions target by 2050.
Countries could consider introducing policies similar to the US Inflation Reduction Act, which
provides SAF producers with a tax credit of $1.25 per gallon, Ms Simpson said.
Current SAF production only meets 0.1 per cent to 0.15 per cent of the requirement, despite
a 200 per cent jump in production last year, according to the WTTC.
“One of the big problems with SAF at the minute is it can cost up to five times as much as jet
fuel. Now, aviation is a very price-sensitive business … that’s why we need the financial
offsets [and] some form of grants or subsidies,” said Ms Simpson.
SOURCE: The National News

Emirates Group reports most profitable year ever

The Emirates Group today released its 2022-23 Annual Report, reporting its most profitable
year ever on the back of strong demand across its businesses.  Emirates (airline) achieved new
record profits, a complete turnaround from its loss position last year. Both Emirates and dnata
(Dubai National Air Travel Agency) saw significant revenue increases in 2022-23 as the Group
expanded its air transport and travel-related operations following the removal of nearly all
pandemic-related restrictions around the world.


For the financial year ended 31 March 2023, the Emirates Group posted a record profit of AED
10.9 billion (US$ 3.0 billion) compared with an AED 3.8 billion (US$ 1.0 billion) loss for last year.
The Group’s revenue was AED 119.8 billion (US$ 32.6 billion), an increase of 81% over last
year’s results. The Group’s cash balance was AED 42.5 billion (US$ 11.6 billion), the highest
ever reported, up 65% from last year mainly due to strong demand across its core business
divisions and markets.


HH Sheikh Ahmed  bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates airline and
Group,  said: “We’re proud of our 2022-23 performance which is not only a full recovery, but
also a record result. This achievement would not have been possible without HH Sheikh
Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister, and Ruler of
Dubai, whose leadership has been critical to our success today and through the years. The
architect of Dubai’s progressive economic policies, HH Sheikh Mohammed is also the engine
behind the Emirates Group’s trajectory. Without his drive and support, Emirates will be half the
size of what we are today.”

Source: www.airlinegeeks.com

Shareholder row continues around Kenya’s Bluebird Aviation as court orders fresh valuation of the airline.

Due to lack of transparency, a Kenyan High Court has ordered a fresh valuation of charter carrier Bluebird Aviation (Kenya) amid a buy-out dispute between shareholders, reports Standard Media in Nairobi.

According to ch-aviation.com, Commercial Court division Judge Njoki Mwangi has set aside a valuation report tabled in court last year valuing the shares of founder Adan Abid Yusuf at KES320 million Kenyan shilling (USD2.3 million), according to the Nation Media Group.

The judge found there was no transparency and independence in the preparation of the valuation report compiled by RSM (East Africa) Consulting Ltd on behalf of Yusuf’s partners, former Kenya Air Force officers Hussein Farah and Hussein Mohammed and pilot Mohammed Abdikadir, who each own 25% of the company. The airline was founded in 1992 to transport shipments of miraa or khat to Somalia, a stimulant plant native to East Africa and the Arabian Peninsula.

However, a shareholder fallout has seen Yusuf file multiple legal actions against his partners over the years, resulting in the High Court directing his partners to buy him out three years ago. The valuation report assessed the value of the carrier’s aircraft, land and buildings at Nairobi Wilson, reviewed its balance sheet and prepared a financial model incorporating historical performance over the preceding three years. Upon conclusion, the report was prepared and shared with the parties, and the money was wired to a judiciary account. Yusuf’s shares were transferred to Abdikadir.

However, Yusuf challenged the report arguing that the KES320 million was a speculative figure. He was supplied with the report on December 6, 2021, but the airline’s audited financial statements for the financial years from 2017 to 2021 were not provided as backup.

The judge directed the four parties to appoint a new valuer. If the value of the airline is found to be less, the airline would be refunded from the amount already deposited in the judiciary account. If the value is found to be more, the airline would have seven days from the new report being filed to top up the difference. The sum held in court will be released to the applicant’s (Yusuf’s) advocate within seven days of filing the new valuation report in court. Yusuf will bear the cost of the new valuation.

According to the ch-aviation fleets advanced module, Bluebird Aviation operates a fleet of ten (mostly leased) aircraft, including four DHC-8-100s, one DHC-8-Q400, three DHC-8-Q400(PF) freighters, and two F50s

SOURCE: ATQ News

Avia cargo: International Air Transport Association says African airlines reported 6% decline in cargo volumes in March 2023

International Air Transport Association (IATA) has said African airlines saw overall cargo volumes decline 6.2 percent in March 2023 compared to March 2022.

The latest update of the global aviation body indicated that capacity was 4.1 percent below March 2022 levels.

According to logupdateafrica.com, “This was an improvement in performance compared to the previous month (-7.4 percent). Notably, Africa to Asia routes experienced significant cargo demand growth in March.” Global demand, measured in cargo tonne-kilometres (CTKs), fell 7.7 percent in March compared to March 2022 (-8.1 percent for international operations).

“This was a slight improvement over February 2023 performance (-9.4 percent) and half the rate of annual decline seen in January and December (-16.8 percent and -15.6 percent, respectively). At this point, it is unclear if this is a potentially modest start of an improvement trend or the upside of market volatility. Irrespective of this, March performance slipped back into negative territory compared to pre-Covid levels (-8.1 percent).”

Capacity (measured in available cargo tonne-kilometres, ACTK) increased 9.9 percent YoY. “The strong uptick in ACTKs reflects the addition of belly capacity as the passenger side of the business continues to recover.”

Willie Walsh, Director General, IATA says: “Air cargo had a volatile first quarter. In March, overall demand slipped back below pre-Covid-19 levels and most of the indicators for the fundamental drivers of air cargo demand are weak or weakening. While the trading environment is tough, there is some good news. Airlines are getting help in managing through the volatility with yields that have remained high and fuel prices that have moderated from exceptionally high levels. Looking ahead, with inflation reducing in G7 countries, policy makers are expected to ease economic cooling measures and that would stimulate demand.”

Regional performance


Asia-Pacific airlines saw their air cargo volumes decrease by 7.3 percent in March 2023 compared to the same month in 2022. This was a slight decrease in performance compared to February (-5.4 percent). “The drop in demand suggests that air cargo traffic in the region has not yet stabilised following China’s reopening in January. Available capacity in the region increased by 23.6 percent compared to March 2022 as more belly capacity came online from the passenger side of the business.”

North American carriers posted the weakest performance of all regions with a 9.4 percent decrease in volumes compared to the same month in 2022.

“The transatlantic route between North America and Europe saw traffic declining at an accelerated pace throughout March. Capacity increased 0.4 percent compared to March 2022.”

European carriers saw the most substantial improvement in demand in March over the previous month. Airlines in the region saw volumes decrease by 7.8 percent in March 2023 compared to the same month in 2022. This was an improvement in performance versus February (-15.9 percent). “Airlines in the region continue to be most affected by the war in Ukraine. Capacity increased 8.8 percent in March 2023 compared to March 2022.”

Middle Eastern carriers experienced a 5.5 percent year-on-year decrease in volumes in March 2023. “This was also an improvement to the previous month’s decline (-7.1 percent). The demand on Middle East-Europe routes has been trending upward in recent months. Capacity increased 9.7 percent compared to March 2022.”

Latin American carriers had the strongest performance of all regions in March despite posting a decline in performance over the previous month. “Carriers in the region reported a 5.3 percent decrease in cargo volumes in March 2023 compared to March 2022. This was a drop in performance compared to February which saw a 2.9 percent decline. Capacity in March was up 12.9 percent compared to the same month in 2022.”

International Air Transport Association (IATA) has said African airlines saw overall cargo volumes decline 6.2 percent in March 2023 compared to March 2022.

The latest update of the global aviation body indicated that capacity was 4.1 percent below March 2022 levels.

According to logupdateafrica.com, “This was an improvement in performance compared to the previous month (-7.4 percent). Notably, Africa to Asia routes experienced significant cargo demand growth in March.” Global demand, measured in cargo tonne-kilometres (CTKs), fell 7.7 percent in March compared to March 2022 (-8.1 percent for international operations).

“This was a slight improvement over February 2023 performance (-9.4 percent) and half the rate of annual decline seen in January and December (-16.8 percent and -15.6 percent, respectively). At this point, it is unclear if this is a potentially modest start of an improvement trend or the upside of market volatility. Irrespective of this, March performance slipped back into negative territory compared to pre-Covid levels (-8.1 percent).”

Capacity (measured in available cargo tonne-kilometres, ACTK) increased 9.9 percent YoY. “The strong uptick in ACTKs reflects the addition of belly capacity as the passenger side of the business continues to recover.”

Willie Walsh, Director General, IATA says: “Air cargo had a volatile first quarter. In March, overall demand slipped back below pre-Covid-19 levels and most of the indicators for the fundamental drivers of air cargo demand are weak or weakening. While the trading environment is tough, there is some good news. Airlines are getting help in managing through the volatility with yields that have remained high and fuel prices that have moderated from exceptionally high levels. Looking ahead, with inflation reducing in G7 countries, policy makers are expected to ease economic cooling measures and that would stimulate demand.”

Regional performance


Asia-Pacific airlines saw their air cargo volumes decrease by 7.3 percent in March 2023 compared to the same month in 2022. This was a slight decrease in performance compared to February (-5.4 percent). “The drop in demand suggests that air cargo traffic in the region has not yet stabilised following China’s reopening in January. Available capacity in the region increased by 23.6 percent compared to March 2022 as more belly capacity came online from the passenger side of the business.”

North American carriers posted the weakest performance of all regions with a 9.4 percent decrease in volumes compared to the same month in 2022.

“The transatlantic route between North America and Europe saw traffic declining at an accelerated pace throughout March. Capacity increased 0.4 percent compared to March 2022.”

European carriers saw the most substantial improvement in demand in March over the previous month. Airlines in the region saw volumes decrease by 7.8 percent in March 2023 compared to the same month in 2022. This was an improvement in performance versus February (-15.9 percent). “Airlines in the region continue to be most affected by the war in Ukraine. Capacity increased 8.8 percent in March 2023 compared to March 2022.”

Middle Eastern carriers experienced a 5.5 percent year-on-year decrease in volumes in March 2023. “This was also an improvement to the previous month’s decline (-7.1 percent). The demand on Middle East-Europe routes has been trending upward in recent months. Capacity increased 9.7 percent compared to March 2022.”

Latin American carriers had the strongest performance of all regions in March despite posting a decline in performance over the previous month. “Carriers in the region reported a 5.3 percent decrease in cargo volumes in March 2023 compared to March 2022. This was a drop in performance compared to February which saw a 2.9 percent decline. Capacity in March was up 12.9 percent compared to the same month in 2022.”

SOURCE: ATQ News

Ethiopian Airlines Launches Flights To Pakistan

The airline started service to the country nearly 60 years ago.

After a hiatus of nearly two decades, Ethiopian Airlines restarted service to Pakistan this week. With 110 passengers onboard, the flight arrived in Karachi on Monday, formally completing the prerequisites to re-launch the service.

The airline will operate multiple flights per week between Addis Ababa and Karachi. Jamal Bakir Abdullah, the Ambassador of Ethiopia, said the service promotes trade and tourism between both countries.

A warm welcome

According to SAMAA, Ethiopian officials, diplomats, and a trade delegation flew in on Monday’s flight that completed the prerequisites. They were welcomed by Sindh Chief Minister Syed Murad Ali Shah and his team, as well as other Pakistani officials, including Sharjeel Memon, Nasir Shah, Ikramullah Dharejo, and Murtaza Wahab.

The new flights come as several foreign airlines have faced challenges operating in Pakistan. Ethiopian Airlines CEO Mesfin Tasew spoke about the airline returning to Pakistan.

Improving trade and the economy

The resumed service is expected to strengthen the relations between both countries and boost the economy. The airline will operate four flights per week, according to ARY News.

“As the only flight connecting Pakistan with Africa, the planned service to Karachi will have a significant contribution in strengthening the diplomatic and economic relations between the two regions,” Tasew said to ARY News.

Nearly 40 destinations in Asia

Ethiopian’s Foreign Minister will reportedly fly to Karachi on the first flight of the regular operation on Tuesday. Abdulla mentioned that Ethiopia is a significant market and attracts trade from several diverse sectors in Pakistan, such as pharmaceuticals, surgical instruments, etc.

To celebrate the resumed flights, Ethiopian Minister of Foreign Affairs Misganu Arega and the delegation will visit Pakistan for two days. During the visit, both Arega and Minister of State for Foreign Affairs, Hina Rabbani Khar, are expected to open the Embassy of Ethiopia from Islamabad, according to ARY News.

Karachi is the airline’s 37th destination in Asia. In March, the carrier finalized preparations to begin the flights. In July 1966, Ethiopian Airlines inaugurated service to Karachi and served the city until December 1971. Service then resumed in June 1993 and lasted until 2004. Currently, the carrier serves more than 145 domestic and international cargo destinations.

SOURCE: SAMAAH

Africa: Kenyan Govt. Seeks PPP For New Nairobi Airport Terminal And Runway To Increase Capacity

The Kenyan Government is seeking a Private Public Partnership (PPP), to build both a second runway and a new terminal building aimed at doubling the airport’s passenger handling capacity.

According to centreforaviation.com, slowly but surely Africa is starting to attract more external investment and management expertise into its airports, despite all the actual and perceived negatives about participating there.

Qatar Airways is involved with a new airport in Rwanda, and VINCI has multiple concessions across the Cape Verde archipelago. Chinese companies are thereabouts, always looking out for the main chance.

In Kenya the state airline tried to take operational control of Nairobi’s Jomo Kenyatta International Airport, the continent’s 11th busiest, in 2022. As the airport is the airline’s main base, Kenya Airways must have been concerned that two separate attempts to build a second runway there had floundered, the second one supported by the African Development Bank.

Now the government is seeking partners in a PPP to build both a second runway and a new terminal building. But such a commitment might not be attractive to many potential investors when traffic numbers remain low by international standards, and while concerns about political opaqueness remain.

This is part one of a two-part report.

New terminal and second runway to be built at Nairobi’s main airport; government hopes for PPP agreement.

Kenya’s Cabinet Secretary for Roads, Transport, and Public Works Kipchumba Murkomen said that the government intended to construct a new ‘state of the art’ passenger terminal at Nairobi Jomo Kenyatta International Airport (JKIA).

Mr Murkomen added that the government was seeking a public private partnership (PPP) model for the works, which would include a new runway. The project will aim to double the airport’s passenger handling capacity.

Mr Murkomen said that this would solve the challenge facing the airport in terms of its capacity to serve passengers, which has led to “inefficiencies and breakdown in systems.” He also noted that it would “provide jobs, boost tourism, trade and investment, and enhance regional integration”.

He then went on to say that with the airport being a key port of entry for Kenya, it would be critical that the government worked on a PPP model that would facilitate the expansion of JKIA and “move to the list of the best airports in the world”.

He urged the board to work with the government, stakeholders and investors to achieve the plan, and asked the board to review the KAA Act 1991 so that it could “concur with current developments in the aviation sector”.

He concluded that there was a need to enhance security at JKIA and other airports in the country, both physical and cyber.

Need to reposition the airport as the main East Africa gateway and to tap into increased investor interest in the continent.

There are two factors in play here. Firstly, a need to reposition Nairobi Airport so that it can challenge others in East Africa – notably the existing and new Addis Ababa airports in Ethiopia – as the regional gateway, and secondly, so that it can tap into a small but viable increase in interest in investing in African aviation from outside the continent – such as Qatar Airways’ investment in the new airport at Kigali, Rwanda.

Steady traffic growth before the pandemic; capacity slowly recovering Passenger traffic grew steadily – if not spectacularly – at Nairobi from 2014 to 2019, before succumbing, like everywhere else, to the COVID-19 pandemic in 2019.

Capacity has not yet retrieved the position of 2019 but is narrowing the gap. As of the week commencing 17-Apr-2023, it stands at around 88% of what it was in the same week of 2019.

Kenya Airways and its LCC are dominant, hence also SkyTeam. The national carrier Kenya Airways is the dominant airline, with 49% of capacity and between 46% and 50% of movements between peak and off-peak.

The second largest airline by capacity is its fully owned LCC subsidiary Jambojet (15%).

Jambojet was established to help meet rising competition in Kenya Airways’ core markets from new independent LCCs.

Nairobi Jomo Kenyatta International Airport: system seats by airline, week commencing 24-Apr-2023

The LCC model is better established in East Africa than in other regions of the country but even so, in Kenya only 2.7% of international seats are ‘low cost’ and the domestic market accounts for just 6.5% (Jan-Apr-2023). The figures are marginally higher in East Africa as a whole.

At JKIA 16.55% of seats are presently offered by LCCs, which is an unexpectedly high amount, but even so it is not a burgeoning demand for budget travel that necessitates a new terminal building and runway.

A broad north-south network but remains weak to the Americas and Asia Pacific.

As expected, most of the capacity is on East African routes, followed by the Middle East and Western Europe. Nairobi Jomo Kenyatta International Airport: network map for the week commencing 24-Apr-2023

The single international country with the highest capacity is the UAE, followed by Tanzania, South Africa, the UK and Ethiopia. That suggests quite a broad network at Nairobi, and that is certainly the case, or at least it is on a north-south axis as the below map details.

There are many routes in East Africa and the Middle East and an adequate network in Europe for passengers via the main gateways, and for cargo.

Within recent memory there were few east-west routes across Africa, often necessitating a journey to a European or Middle East transit point to get between the two, but Nairobi does now have five destinations in that region.

The weak links are undeniably the Americas – with only one trans Atlantic service, to New York – and Asia Pacific, with two services to India (Delhi, Mumbai) and two Chinese ones (Changsha and Guangzhou, which began in Apr-2023).

Despite the airport’s elevation, at over 5,000ft (1524m), the single 4,200m runway should be adequate to handle most long-haul flights out of Nairobi, and that is another reason why ‘a second runway is needed’ can be discounted.


On the other hand, there are concerns about what happens when that runway is closed, as revealed later.

The only substantially longer routes that might be flown (that are not now) would be to the west coast of the US and Canada, to South Korea and Japan, and to Iceland (the two countries are coincidentally connected by the fishing industry, Iceland selling its advanced technology widely to African countries).

So the two main concerns behind this expansion seem to be capacity and planning for future growth.

Current utilisation of existing facilities is high on most days

Where capacity is concerned, usage is high. The chart below is for Thursday 27-Apr-2023 and shows all but one of the 24-hour blocks in use for departing and/or arriving flights (as measured by their seat capacity). Most other days are much the same.

All three major airlines alliances are present


JKIA also benefits from the presence of all three of the major airline alliances, and particularly SkyTeam (by way of Kenya Airways), which has 55% of the capacity – its main competitor in the region, Addis Ababa Bole Airport, has 97% of capacity on one alliance, Star.

There are two terminals. Terminal 1 is arranged in a semi-circular manner and is divided into four distinct parts rather than concourses.

Terminals 1A, 1B, 1C, and 1E are used for international arrivals and departures, and 1D is used for domestic departures and arrivals.

Terminal 2 is used by low-cost carriers, and right now is tiny by comparison, with less than 1,000 seats of capacity for the whole of the week commencing 24-Apr-2023.

SOURCE: ATQ News