Big data is permeating every aspect of daily commercial activity—from financial services, retail, logistics to production lines.

Airlines are now having their moment of epiphany with big data. Take the case of AirAsia, one of the leading low-cost carriers (LCC) in the ASEAN region.

At a recent Credit Suisse Asia Investment conference, its chief executive Tony Fernandes made a pitch for AirAsia becoming a digital retailer (and not just an airline).

Michael O’Leary, the chief executive of Europe’s leading LCC Ryanair has previously stated that his airline would eventually become the Amazon of travel.

There is no doubt that airlines are moving beyond the legacy model (or monoline) of ticket sales, and are building a strong ancillary business. Think about it.

If you are a frequent traveler to Lagos with Kenya Airways, there are high chances the airline doesn’t know you. Yet a flight is just a secondary part of your journey. Upon disembarking, you will need transfer from the airport, as well as hotel accommodation; and you may also want to discover a bit of the city in between business meetings (for instance, the best restaurants offering authentic local cuisines).

Often, legacy airlines show little interest in non-flight part of a passenger’s journey. And for an airline of the stature of Kenya Airways that flies close to five million passengers a year, that’s a lot of data that they accumulate.

With a little mining, they can begin to know their customers better and make mouthwatering propositions.

They even begin to bundle and personalise products better and stop mass advertising as much because as you get to know your customers better, you begin to go directly to them (I get a lot of junk e-promos from KQ).

Ancillary business, which is not an entirely new concept, is now top of mind for almost every airline. In 2018 projections from the International Air Transport Association (IATA), the industry lobby, showed that if the potential in ancillary revenues were to be harnessed, the income would cover half the annual fuel expenditure.

The same report noted an increase in cost of fuel against the same number of airlines from an approximate $149 billion in 2017 to $188 billion in 2018.

So we are looking at airlines generating nearly $100 billion in ancillary revenues. At the root of this growth has been the unbundling of ticket prices, or the core ‘air’ ancillary products.

They comprise offerings such as assigning of seats, extra legroom, onboard shopping and checked baggage as part of the package.

However, ‘non-air’ ancillary services are also fast becoming mainstream. On its website, AirAsia offers users hotel accommodation deals, car rental, credit cards and even travel protection (insurance).

When you want to travel to London, for instance, your first point of interaction is with an airline(s) when checking out ticket prices. What if the airline also offered you airport transfer and hotel accommodation?

It’s no wonder AirAsia generated 22 percent of revenues from ancillaries in 2018. However, Spirit Airlines, an American carrier, still stands out after generating 47 percent of its total operating revenues from ancillaries.

In 2018, Kenya Airways jumped into the ancillary bus by introducing an enhanced seating propositions (extra legroom and preferred seat) and significantly growing its distribution scope to all relevant direct booking channels, generating an additional Sh8.3 billion (which was just a paltry seven percent of its total revenues).

As airlines become more agile, the aircraft will become merely a tool to acquire customers. An airline executive even talked of giving free flights to passengers in exchange for a holiday booking on their platform, which is not a far-fetched concept. All thanks to big data.

@GeorgeBodo

Source: https://www.businessdailyafrica.com/analysis/columnists/can-data-come-to-rescue-of-Kenya-Airways/4259356-5324598-15h6mko/index.html

Seven local hotels were feted during the 2019 World Luxury Hotel awards where six emerged top in various categories across Africa as one topped in East Africa.

Elewana Kifaru House located in Lewa Conservancy emerged the continent’s overall luxury hotel with best scenic environment with Nanyuki’s Maiyan emerging top in luxury private pool villa category as Nairobi’s Sankara bagged the luxury boutique hotel award.

Sarova Stanley emerged Africa’s best luxury city hotel as Sarova Whitesands Beach Resort was named the best luxury beach resort as Sun International topped continent’s overall to be feted as the best luxury hotel group. Diani’s Lantana Galu Beach Hotel was the East Africa’s best family beach hotel.

Turkey’ Mandarin Oriental, Bodrum won the overall best hotel and destination award during the 13th annual World Luxury Hotel Awards gala was held in Finland last weekend.

World Luxury Hotel Awards are exclusive and recognise the best facilities and service excellence in the industry. The winners are judged on service delivery and effective management voted for by International tour operators, travel agents and hotel guests who get the opportunity to cast their votes annually.

The award organisers described the Turkish hotel as a luxury five-star hotel retreat with two private beaches and excellent leisure facilities, guests are invited to lie back, relax and savour the moment.

“With an idyllic location in Paradise Bay, Mandarin Oriental, Bodrum offers a seductive blend of style, serenity and five-star comfort. With a range of gourmet restaurants, relaxing spa and choice of rooms, suites and villas, the unique resort is definitely world-class.”

Notably, the number of local hotels featured this year went down by four an indicator of the stiff competition in Kenya’s hospitality sector.

Source: https://www.businessdailyafrica.com/corporate/companies/Kenyan-hotels-shine-at-world-luxury-awards/4003102-5319478-aryquk/index.html

A Polish charter airline will be flying weekly to Mombasa, Kenya, after its maiden flight was launched on October 12.

The carrier named Smartwings Airlines will be bringing in around 200 tourists from Poland, and is expected to push up the regions hotel occupancy rates above the current 70%.

It will be operating once a week until end of 2019 before increasing its frequency to twice a week from January to March next year.

According to Business Daily, Hoteliers have expressed confidence in the resumption of the airline saying it will boost the tourism sector during the November to December peak season.

“This is the first charter we are welcoming this year of the Polish market. It is very exciting because the whole of these three months this year, they will be bringing in a charter per week, that’s about 200, visitors coming in from Poland,” said Kenya Coast Tourism Association Chairman Victor Shitakha.

Source: http://www.tourismupdate.co.za/article/196071/Charter-Airline-launches-weekly-flights-to-Mombasa/26

Kenya has an opportunity to market its best attractions in the upcoming Dubai 2020 expo alongside more than 200 nations keen on making an appearance at the global event.

To make the six-month event a success, Dubai has embarked on a major charm offensive ahead of hosting the exhibition in which the Middle East city seeks to catch the eye of the world.

Among preparations for the October 2020 to March 2021 is the setting up of a new state of the art city next to the new marina zone spotting all new buildings.

Dubai says the city is a test bed for innovation and a blueprint for future smart cities.

At the centre of the plan is Al Wasl Plaza which is the old name for the Emirates, and previously won the right to host the event in November 2013.

 “We will use this event to create jobs and businesses,” said Reem AL Heshimy one of the organisers of the event at the official launch of 365 days to Dubai 2020 expo.

“The days give an unprecedented opportunity to inspire new ideas for better future and for the Arab region to prove that religion and culture are not a hindrance to development,” she said.

Dubai hopes the billions of dollars pumped into the megacity in conjunction with tech firm Siemens will yield Sh3.5 trillion ($35 billion) by 2030.

Source: https://www.businessdailyafrica.com/economy/Dubai-expo-opens-window-for-local-tourism-marketers/3946234-5321786-x81o9dz/index.html

 

Travel agents in East Africa have been thrust into a state of uncertainty after Saham insurance announced that they would not be renewing the Default Insurance Program (DIP) for the year 2020.

This was after the International Air Transport Association (IATA) introduced new requirements that Saham insurance refused to comply with.

The withdrawal of this facility means that travel agents have less than three months to come up with a solution on financial security to ensure that the ticket sales market is not affected.

Kenya Association of Travel Agents (KATA) CEO Mr. Nicanor Sabula said that the Association has reached out to IATA to provide an immediate solution to the impasse.

“We have engaged with various industry stakeholders including government agencies in an effort to find a quick and favourable solution,” he added.

Mr. Sabula urged members to remain calm as the Association works towards finding a lasting resolution.

Airlines globally use agents through a centralised distribution system to issue tickets to their clients. To participate in this ticketing platform, travel agents are required by IATA on behalf of airlines to provide financial security.

 

Kenya has been feted by the International Civil Aviation Organization (ICAO) for its enhance improvement in ensuring security to support the aviation sector.

The nation was awarded with the ICAO Council President Certificate in recognition to effective implementation of ICAO Standards and Recommended Practices (SARPs) in Aviation Security in 2018.

Uganda and Rwanda among other 28 countries have also been feted.

In 2016, Kenya scored 88 per cent against the global average of 64 per cent in the ICAO Universal Security Audit Programme – Continuous Monitoring Approach ((USAP-CMA).

Kenya Civil Aviation Authority (KCAA) Director General Gilbert Kibe has reiterated the acknowledgement in ensuring that the Kenyan airspace is safe and secure for aviation consumers, saying it looks to improve the score in the upcoming USAP Audit in 2020.

“Over the years, the authority has strived towards improving our aviation security processes and systems in compliance with ICAO Standards and Recommended Practices (SARPs) which in turn have enhanced our National Aviation Security of the Kenyan airspace. This award gives us the impetus to do more,” Kibe said.

The awards, established by the ICAO Council in support of its ongoing No Country Left Behind initiative, were developed to recognise and encourage states’ commitment and progress in making the aviation global network safer and secure.

The implementation of SARPs is considered a fundamental prerequisite for establishing air transport’s rapid global connectivity, and in turn the realise socio-economic benefits for each nation.

 

Our Source: https://www.the-star.co.ke/business/2019-10-11-kenya-feted-for-enhancing-security-in-aviation-industry/

Qatar Airways is set to increase its flights between Mombasa and Doha in December, stepping up competition for struggling national carrier Kenya Airways.

The Middle East carrier, which operates three daily flights to Nairobi’s Jomo Kenyatta International Airport, said they would be flying to Mombasa five times a week, up from four. The additional flight will run from December 20 to March 27.

“The increase in frequency will allow passengers to enjoy the wonders that this coastal city has to offer, and locals will have more opportunities to enjoy Qatar Airways’ extensive global network of more than 160 destinations,” said group Chief Executive Akbar Al Baker in a statement yesterday.

The airline would deploy Airbus A320 on the Mombasa route for the additional flight. The aircraft has 12 business class seats and 120 seats in economy class. The additional flight on Fridays will depart Doha at 02:30hrs to arrive in Mombasa at 08:40hrs and leave Mombasa at 16:50hrs to arrive in Doha at 23:05hrs.

“This increase allows for further growth, and strengthens the bonds between the State of Qatar and Kenya,” said Mr Al Baker.

Our Source: https://www.nation.co.ke/business/Qatar-Airways-increases-Mombasa/996-5315532-69bhd3/index.html

South Africa’s embattled state-owned airline is open to outside investment and in talks with a number of potential partners, President Cyril Ramaphosa said on Monday.

The economy of the African continent’s most industrialized nation has come under ever growing pressure as the government grapples with lacklustre growth, high unemployment and a heavy debt burden, especially from state-owned enterprises such as South African Airways (SAA) and power firm Eskom.

“South African Airways is one of those state-owned enterprises that has relied on lots of state bailouts,” Ramaphosa told the FT Africa conference in London.

“We are on record as saying we are open to the participation of the private sector. As we speak now, we’re talking to a few interested parties when it comes to SAA.”

In September, the cash-strapped national airline said a government cash injection of 5.5 billion rand ($372 million) had been approved for the 2019/20 financial year but that it still needed more money.

Ramaphosa also said his government realized it had to pursue prudent fiscal policies in order to grow the economy, create jobs and attract investment.

“At a time when our fiscus is under great pressure, we are committed to ensuring debt sustainability, improving the composition of spending and reducing risks arising from contingent liabilities, especially of our state-owned enterprises.”

The government is due to publish a number of key papers and decisions in the coming days: a special paper laying out how to rescue Eskom and who will be the utility’s new chief executive as well as the country’s long-term energy plan, the so-called the Integrated Resource Plan (IRP).

Asked if he thought the government was doing enough to maintain its investment grade rating with Moody’s, Ramaphosa said he expected “Moody’s and others will be very happy.”

Moody’s is the last of the top three ratings firms to still rank Pretoria’s debt at investment grade – Baa3 with a stable outlook – and has not made a widely expected downgrade.

Our source: https://www.reuters.com/article/us-safrica-economy-privatisation/south-african-airways-in-talks-with-potential-partners-idUSKBN1WT159

The Kenya Airline Pilots Association (Kalpa) has suspended talks with the Kenya Airways (KQ) management on a collective bargaining agreement after differing on how the airline should address its pilot shortage.

General-Secretary Murithi Nyagah in a letter to KQ’s outgoing Chief Executive Sebastian Mikosz, says the engagements had been halted until they engage in “fair and honest” talks.

“The Association hereby suspends participation in CBA negotiations due to gross violations of the CBA and the lack of goodwill thereof from management,” said Captain Nyagah.

He also notified Kalpa members that the union had filed a dispute in court after the talks collapsed.

“CBA negotiations will remain suspended until such a time we feel we are engaging in a fair and honest industrial climate. To this end the executive council is left with no choice but to declare a trade dispute at the Ministry of Labour,” said the letter dated October 14.

The airline, which has been losing Sh5.18 billion ($50 million) annually as a result of the shortage of pilots has been operating with 435 pilots.

The current number of pilots based on its fleets is 435 against a requirement of 497 pilots, resulting in a deficit of 62 pilots, according to the airline’s director of operations Paul Njoroge.

Forty-four of these pilots are also undergoing training due to the current promotion policy.

To bridge the pilot’s deficit, the airline has insisted on hiring 20 pilots for the Boeing 737 planes despite opposition from the union.

Our Source: https://www.businessdailyafrica.com/corporate/companies/Kenya-Airways-salary-talks-with-pilots/4003102-5311154-hwvag1z/index.html

The Slovenian State Secretary within the Ministry for Economy, Eva Štravs Podlogar, has met with representatives of Germany’s Lufthansa in Frankfurt to “analyse the aviation market in the wake of Adria Airways’ bankruptcy”. Ms Štravs Podlogar was accompanied by both the CEO and the Chairman of the Board of Directors of Slovenia’s Bank Assets Management Company. The ministry said it was examining legal and organisational alternatives that would help fill the void created by Adria’s demise, noting that talks with various stakeholders were under way. It added that any potential decision concerning the creation of a new flag carrier would have to take into account Lufthansa’s plans for the Slovenian market.

The Minister for Economic Development and Technology, Zdravko Počivalšek, is believed to have proposed the creation of a new national airline which would launch towards the end of February 2020 with a fleet of ten to twelve aircraft. Mr Počivalšek previously said any new flag carrier should be established only in partnership with Lufthansa. Former Adria Airways employees, who were tasked with looking into rescue initiatives for the airline, have said a foreign carrier has plans to set up a new company at Ljubljana Airport. On the other hand, the Slovenian Prime Minister, Marjan Šarec, has said that establishing a new state-owned airline would be “too risky”, but stopped short of dismissing the idea all together. “Launching such a project without providing incentives to the company for a period of at least three years would be too risky and meaningless”, the Prime Minister said.

Adria Airways’ receiver has invited interested parties to bid for assets of the collapsed airline. The formal tender states that the bankruptcy administrator, Janez Pustatičnik, is offering the entirety, or part, of Adria Airways for sale. It says that participants in the process must submit their offers no later than November 10, and bidders will be informed of the outcome within fifteen days of the deadline. Some of Adria’s assets include land property rights and the head office building, aircraft parts and two apartments. The airline had no aircraft in its ownership and leased its entire fleet. “With the invitation for non-binding bids I would like to check the interest of potential buyers”, Mr Pustatičnik said.

Meanwhile, Slovenia’s parliamentary finance committee has proposed for Adria’s sale to Germany’s 4K Invest in 2016 be formally examined. It issued a decision stating that the country’s Court of Audit should investigate the sale and the contract under which the airline was sold. It added that the results of the investigation should be submitted to the National Assembly “as soon as possible”. The committee has also sought to spur the Slovenian government into exploring conditions under which it could establish a new state-owned airline, with the support of former Adria employees.

Our Source: https://www.exyuaviation.com/2019/10/slovenia-holds-talks-with-lufthansa.html