Air Tanzania told to repay illegal state bailout

Air Tanzania will have to repay TZS896 billion shillings (USD388.8 million) illegally received from government coffers without prior approval from the country’s Ministry of Finance and Planning, according to the Parliamentary Accounts Committee (PAC).

Committee Vice-Chairman Japhet Hasunga told The Citizen newspaper the unauthorised disbursement has emerged from the Controller and Auditor-General’s (CAG) 2019/20 report, which had uncovered that there had been no proper record keeping of the national debt, with some debt either not recorded, while other records were inaccurate.

Hasunga said the airline will be required to repay the money. “All institutions that borrowed money without the ministry’s approval are required to repay the debts because we have identified they were not approved by the Finance and Planning Ministry,” he said.

The Auditor-General reported that Air Tanzania had incurred TZS150 billion (USD65 million) in losses in the past five years.

As reported, Transport Minister Leonard Chamuriho, during his budget forecasts for the 2021/22 fiscal year on May 17, 2021, announced a TZS450 billion (USD194 million) state bailout that would allow the struggling flag carrier to continue operations and pay for the expansion of its fleet as set out in the airline’s five-year strategic plan ending 2021/22. This was in addition to the disbursement of TZS56.61 billion (USD24.4 million) from the company’s internal resources.

He said the money would be used to pay for two new 160-180 seater aircraft (type unspecified although likely A320-200N or B737-8); one B787-8; one B767-300F freighter; and to complete the purchase of one new DHC-8-Q400, and two more A220-300s.

The EastAfrican newspaper, quoting unnamed aviation sources, reported Air Tanzania would take delivery of five new aircraft, including the freighter, by the end of 2023, after Dodoma made a down payment of TZS596.3 billion (USD258.7 million) for the aircraft, a move that will increase the carrier’s current fleet size to 16.

The airline on October 7 and September 24 respectively welcomed two A220-300s – 5H-TCL (msn 55130) and 5H-TCM (msn 55135) – its fleet now numbering four of the type.

It also owns two B787-8s and five DHC-8-Q400s, which are in service, the ch-aviation fleets advanced module shows. In addition, it owns one DHC-8-300, one F28-3000, and one F50.

Meanwhile, Air Tanzania has announced four new regional routes to be launched next month from Dar es Salaam to Bujumbura (Burundi) starting November 8; Ndola (Zambia) and Lubumbashi (DRC) launching on November 18; and Nairobi Jomo Kenyatta (Kenya) on November 26, 2021.

The airline currently provides regional flights to Entebbe/Kampala (Uganda) Harare Int’l (Zimbabwe), and Lusaka (Zambia) and weekly cargo flights to Guangzhou, China.

It suspended its flights to Mumbai Int’l in May due to concerns over a spike in COVID-19 infections in India, but resumed the service at the end of August.

Flights to Johannesburg O.R. Tambo, South Africa have been on hold ever since one Airbus was impounded by court order in Johannesburg two years ago.

Air Tanzania spokesman Josephat Kagirwa said domestic flight frequencies would be increased to busy destinations such as the Tanzanian capital Dodoma, Kilimanjaro, and Mwanza, while flights to Mtwara in southern Tanzania would resume after being suspended to allow for airport facility improvements.

Sourch: Ch-aviation

Africa’s Most Expensive Airline? Kenya Airways Attracts Attention

African aviation is going through a period of notable transition. With this shift, analysts have been looking at the market’s pricing. As a result, a report has shown that in Africa, Kenya Airways charges the most for its tickets.

The top of the crop

The African Competition Forum (ACF) has shared a report that studied the aviation industries of 24 countries in Africa. The study looked at which airlines charged the highest average fares on domestic and international operations.

The conclusion was that Kenya Airways charged the highest on most routes where it has competition. In the vast majority of cases, it charged higher than the likes of South African Airways, Ethiopian Airways, and Air France.

Kenya Airways held the highest average passenger price per kilometer (APPK) for all its national, regional, and international routes. Moreover, Tanzanian routes had higher APPK than services routes, which traveled farther.

Looking at the figures

Taking a route as an example, the average price per kilometer on the Nairobi-Johannesburg route was Sh23.8. Meanwhile, South African Airways (SAA) charged Sh22. (1 Kenyan Shilling is 0.0090 US Dollar)

“Prices charged by two operators on this route are visibly different for both economy and business class categories. Kenya Airways prices are 21 percent higher than SAA prices for economy class tickets,” ACF’s report highlights, as shared by Business Daily.

“The Nairobi-Paris route is served by Air France and Kenya Airways, their prices have a difference of Sh5,000, Kenya Airways price being more. KQ charged Sh15.6 per kilometer on the Nairobi-Addis Ababa route, higher than Ethiopian Airlines’ Sh13.2.”

All eyes on Africa

Kenya Airways has been showing its intention of expanding its presence in fellow African nations in recent months. For instance, Congo Airways has begun wet leasing two Embraer E190 aircraft. Kenya Airways has also been in talks with South African Airways about forming a pan-African carrier.

The likes of British Airways have been ramping up collaborations with the carrier. The flag carrier of the United Kingdom signed a codeshare agreement with the airline last week, in a bid to boost travel and tourism between destinations in Africa and Europe.

Central and East African aviation is heating up across the board, with the likes of Air Congo being launched. This carrier holds a large investment from Ethiopian Airlines. Overall, several key players recognize the potential of African aviation, including big names outside of the continent such as Boeing and Qatar Airways.

There are several prospects in Africa, with a new middle-class growing and new passenger segments emerging. Therefore, carriers could continue to change their ticket prices this decade.

Source: Simple Flying

Pan-African Open Skies Agreement Struggles To Get Traction

In November 1999, a group of African aviation movers and shakers met in Côte d’Ivoire to thrash out an agreement on integrating commercial aviation across Africa. The outcome was the Yamoussoukro Decision, a document supporting the liberalization of commercial aviation in Africa.

Single African Air Transport Market a work in progress

Twenty-two years later, there remains a way to go. One of the more recent outcomes was the Single African Air Transport Market (SAATM), a harmonized regulatory framework providing a unified air transport market in Africa.

SAATM also remains a work in progress since its launch in early 2018. According to the International Air Transport Association (IATA), 34 of Africa’s 54 countries have signed up to SAATM. Nonetheless, the framework remains a flagship project of the African Union Agenda 2063 – a set of African Union initiatives to progress Africa’s development.

SAATM has four main goals. Firstly, to lift market access restrictions for airlines from signatory countries. Second, remove restrictions on airline ownership. Third, grant extended air traffic rights such as fifth freedom rights. Fourth, open up flight frequency and passenger capacity limits. Importantly, SAATM would see safety and security rules harmonized in line with ICAO standards.

“The SAATM has the potential for remarkable transformation that will build prosperity while connecting the African continent,” said IATA’s Vice President for Africa, Raphael Kuuchi, three years ago. “Every open air service arrangement has boosted traffic, lifted economies, and created jobs. And we expect no less in Africa.”

IATA’s man in Africa says that if just 12 key African countries opened their markets and increased connectivity, an extra 155,000 jobs and US$1.3 billion in annual GDP would be created in those countries.

Before COVID-19 struck, IATA also forecasted 5.95% annual growth in African aviation over the next two decades. Passenger numbers are expected to increase from 100 million to more than 300 million by 2026.

Over one-third of Africa yet to sign up to SAATM

Back in 2018, the Africa Union wanted to have all of Africa’s 54 countries onboard by the end of this year. With three months to go, that target looks unachievable. Further, by the end of 2020, only 18 of the countries signed up to SAATM had modified their bilateral air services agreement accordingly.

You could blame COVID-19 and the destruction it wrought on the aviation industry, but there is a strong argument that destruction would incentivize slow-to-move countries to get onboard.

Even before COVID-19, the world’s second-biggest continent and home to an estimated 1.3 billion people was a troublesome environment for airlines to fly in. OAG data says there were 9,666,556 airline seats available across Africa in September or 2.8% of the global total. In February 2020, just before the global travel downturn, the figure was 3.0%

Before the pandemic, the continent was long characterized by sparse connectivity, and this remains the case. Most of Africa’s airlines were losing money before COVID-19 and didn’t have the financial ballast to ride out the crisis successfully. Now, as the vaccination rollout continues and aviation starts to reboot elsewhere, Africa’s airlines are mostly out of money

But these factors all support the case for signing up to SAATM – anything that helps reboot African aviation has to be a good thing, right?

Not everyone in Africa loves SAATM

While there’s a general consensus that SAATM will lead to cheaper flights, greater passenger volumes, and economic benefits, there are also fears the spoils will not get evenly distributed. Some smaller African airlines and smaller countries say they’ll miss out while wealthier countries like South Africa and bigger airlines like Ethiopian Airlines and Kenya Airlines get the rewards.

Industry group Airline Operators of Nigeria (AON) is an example of a stakeholder unimpressed with its own country signing up to SAATM. The industry group questions whether Nigeria is ready for a pan-Africa open skies agreement. When Nigeria signed up to SAATM, AON said they hadn’t been consulted. AON also cited a lack of “assistance” to help Nigeria’s airlines compete.

“Our position is that we are not comfortable with the decision by the Nigerian government because we cannot compete favorably with the African airlines if our skies are fully opened,’’ said AON Chairman Captain Nogie Meggison at the time.

Nigerian officials rejected the argument, a government spokesman saying; “The Nigerian airlines are not yet able to see the benefits of SAATM as their government does.”

Protectionism, high airport charges, taxes, and some less than stellar management from governments, their agencies, and various airlines all lead to the argument that SAATM will not guarantee a level playing field.

Uganda remains one of the SAATM holdouts. When declining to sign, Ugandan president Yoweri Musevini said he thought Africa’s dominant airlines would become even stronger as a result of the agreement. He said he wanted to see countries like Uganda get strong regional airlines up and flying before committing to the open-access agreement.

“Few airlines are going to dominate and that is not good,” President Musevini said.

Still plenty of people onboard

The people promoting SAATM say this won’t be the case. They say the improved connectivity, increased passenger numbers, uniform regulations, and open access will benefit every airline. One of the driving forces behind SAATM is Paul Kagame, President of Rwanda.

Rwanda has been a big player in air traffic liberalization in the last decade, and this is one reason why airline traffic in and out of Rwanda has grown so strongly. Air traffic in Rwanda is forecasted to grow 7.3% annually between now and 2038. Aviation directly contributes US$100 million annually to Rwanda’s economy and another $850 million indirectly.

Paul Kagame calls SAATM “a major step forward for transportation.” In a speech made in 2018 as Chairman of the African Union, he said about the proposed open skies agreement:

“Scale is essential. We must create a single continental market, integrate our infrastructure, and infuse our economies with technology. No country or region can manage on its own. We have to be functional, and we have to stay together.”

In the three years since, some more countries have signed up to SAATM. However, many still have not. Among those who have, regulatory changes within the various countries to meet SAATM requirements remain mostly incomplete.

Opening up Africa’s skies stands to benefit more than airlines and their owners, governments or otherwise. Aviation in Africa tips US$55.8 billion annually into Africa and provides 7.5 million jobs. That’s money funneled into households and supporting families. That reason alone is why SAATM needs to big push along.

Source: Simple Flying

Kenya: Vaccinated Tourists Must Still Undertake PCR Tests, CS Kagwe Says

Tourism and hospitality industry players have suffered a major blow after the government declined to review its PCR rules for fully vaccinated international tourists.

Kenya requires tourists to show a negative Covid-19 PCR certificate when entering and departing.

Sector players have been urging officials to review these rules for fully vaccinated international visitors so as to boost the ailing industry, which was hurt by the pandemic, leading to job losses and the temporary closure of almost all beach hotels.

But Health Cabinet Secretary Mutahi Kagwe said Kenya will only allow in vaccinated international tourists on a reciprocal basis.

“In other words, if other countries are allowing Kenyans who are vaccinated to (enter) without further tests, we will reciprocate. What we are doing is holding bilateral discussions with various countries,” he said.

Speaking at a scientific conference in Mombasa, Mr Kagwe said that the future of international travel will be entirely dependent on vaccinated travellers and Covid-19 passports.

“Countries across the world will not allow people who have not been fully vaccinated to enter those states and Kenya is going to be the same,” he said.

“We want people coming to Kenya to be fully vaccinated and depending on the global trends and World Health Organization advice, we will make up our minds as we go along,” he added.

Tourists coming to Kenya must be safe to protect Kenyans.

He said Kenya had reached bilateral agreements with the UK and Qatar under which fully vaccinated citizens will not be quarantined or tested.

“We must ensure tourists cannot contract the virus here and will further not bring the virus. Covid-19 passports will be a must just like a yellow fever card,” he said.

“At the moment, for instance, that’s the rule we have agreed with the UK and Qatar. This is something that is developing in various countries in the world.”

He defended Kenya’s stand, saying the policy will not affect the tourism sector and that the country’s key source markets are fully vaccinating their populations.

“It is in the interest of the tourists to want to be vaccinated before they start travelling. Our decision will boost tourism because travellers will be secured. People will fear to travel if they don’t think they are safe,” he added.

Mr Kagwe assured industry players that Kenya will intensify its mass vaccination to instil confidence in tourists.

The UK government recently removed eight countries, including Kenya, from its “red list” – countries from or to which travel is restricted.

The move meant that people from these countries will no longer have to quarantine in a hotel and PCR tests will not be required for fully vaccinated travellers returning to England.

The UK is one of Kenya’s key source markets.

Kenya Association of Hotelkeepers and Caterers chief executive Mike Macharia has been urging the government to review its PCR rules for fully vaccinated tourists.

Kenya Coast Tourism Association CEO Julius Owino said that by reviewing the PCR rules, the region will start receiving more international tourists, especially from European countries.

The players have pushed officials to double mass vaccination in order to assure travellers of their safety.

Tourism Cabinet Secretary Najib Balala has also urged Kenyans to be vaccinated as the sector recovers from the pandemic shock.

Source: Nation

KATA Appointed Kenya’s Ticket Reseller For Dubai Expo

Kenya Association of Travel Agents (KATA) has been appointed Kenya’s authorized ticket reseller of the ongoing Expo 2020 Dubai following the signing of an agreement Monday between the agency and  Expo 2020 Dubai LLC-SO

Under the partnership, KATA will sell 1-day tickets and 30 days multi-pass tickets.

KATA Chief Executive Officer (CEO), Agnes Mucuha, said the deal will present an opportunity that would enable Kenyans to have faster access to the expo tickets.

“We are proud to be an official ticket reseller for Expo 2020 Dubai and look forward to extending our new, special range of packages to travelers. We are now able to service travelers from Kenya and entire sub-Saharan Africa by facilitating access to Expo tickets in a quick, seamless manner,” Mucuha said.

She further added that the appointment shows the confidence that the United Arab Emirates (UAE) has in Kenya’s travel trade and the agency has ensured that their agents are well-trained to aid Kenyans enjoy the best there is to offer from the six-month expo.

“We have made the distribution process easy through our certified travel agents’ network who have been trained to cater to questions regarding the available logistics and possibilities during this period,” she said.

KATA Finance Director, Joseph Kititu, who was also present at the signing called for Kenyans to take advantage of this period to purchase the tickets and travel to the expo to enjoy the unlimited offers rolled out.

“With Dubai being a popular destination for Kenyans, we anticipate Kenyan business and leisure travelers, civil servants, and students taking advantage of this once-in-a-lifetime opportunity to experience the making of a new world and the opportunities that Expo 2020 offers,” he said.

The Expo 2020 Dubai began on October 1, 2021, and is set to end on March 31, 2022.

It is an event that would have 192 countries, as well as organizations and businesses, participate in offering visitors exceptional entertainment and culinary experiences, innovation, architecture, and culture.

It would also act as a platform to offer businesses an opportunity to showcase their ideas.

Source: Capital Business

Survey: Buyers, Suppliers See More Business Travel Inclination

Business travel industry buyers and suppliers alike see a brighter path to recovery following the U.S. government’s announcement it will lift entry restrictions on international travelers and what seems to be the waning of the U.S. late-summer Covid-19 delta variant wave, according to a new survey.

The share of member travel managers and procurement professionals surveyed Oct. 4-13 by the Global Business Travel Association who indicated their travelers were “willing” or “very willing” to travel for business was 78 percent, the highest recorded in the monthly polls the association has conducted since last year and up from 69 percent the month prior. GBTA surveyed 252 member buyers. 

Optimism among travel suppliers and travel management company professionals is increasing too. In fact, 52 percent of suppliers surveyed indicated they were more optimistic about the industry’s recovery than they were in September, with 10 percent more pessimistic. About 55 percent indicated their companies’ bookings had increased month over month, as well. 

GBTA drew a straight line between the decision to ease U.S. entry restrictions and the increased optimism. “While we have seen ever-increasing domestic and short-haul travel, a more accelerated recovery has been hindered by the lack of international transatlantic travel,” GBTA CEO Suzanne Neufang said in a statement. “The opening of the much-anticipated Europe- and U.K.-to-U.S. travel corridors, as well as the opening of land borders to Canada and Mexico, will give a much-needed boost to the business travel ecosystem and global economy.”

To wit, about 23 percent of suppliers surveyed said they believed the amount of international travel to the U.S. would “greatly increase” during the next six months as a result of the U.S. government action, while another 50 percent projected it would “moderately increase,” and 26 percent forecast it would “slightly increase.”

Meanwhile, the daily count of new U.S. Covid-19 cases has dropped steadily after peaking in the latest wave in late August. Business travel bookings seem to have increased commensurately.

Still, 38 percent of the member buyers and procurement professionals surveyed indicated they are more likely to contract with travel suppliers who require guests or passengers to prove they are vaccinated against Covid-19, while another 38 percent indicated they were not. The remainder didn’t know. 

About 90 percent of the 467 buyer and supplier members GBTA surveyed said they were fully vaccinated against Covid-19, with another 1 percent indicating partial vaccination. About 3 percent said they were not vaccinated, and the remaining 6 percent wouldn’t answer. 

Source: Business Travel News

IATA Starts Legal Action to End Netherlands’ Slot Rule

The International Air Transport Association (IATA) has started legal action in the Netherlands in order to prevent the implementation of a new Policy Rule for slot allocation, which would harm the functioning system of slot allocation on the global level and lead to commercial damage for IATA members.

According to IATA’s statement the Rule was implemented by the slot coordination of the Netherlands, ACNL, to take effect for the summer season of next year.

In addition, the Rule establishes a list of priority destinations for slots at three overcrowded Dutch airports – Amsterdam Schiphol, Eindhoven, Rotterdam The Hague – which according to IATA, would violate the EU regulation on the common rules for community air services and the EU Slot Regulation in several aspects, SchengenVisaInfo.com reports.

The Air Transport Association claimed that the Rule was inadequately implemented while emphasising that ACNL one-sidedly applied it without consulting parties involved, as would be required under the law of the EU.

“The application of the Rule in slot allocation decisions compromises the role of the independent and impartial slot coordinators enshrined in EU law, instead requiring priority to be given in their decision-making to a list of destinations. This makes the coordinator the servant of the airport to the disadvantage of the airlines and the consumer,” the Deputy Director-General of IATA, Conrad Clifford, said.

Furthermore, Clifford said that the slot allocation process must serve the consumers’ needs who want to reliably more freight or move, highlighting that airlines should design schedules that meet consumer demand, not the desires of the infrastructure providers.

In addition, it has been highlighted that the Rule compromises the systematic development of air connectivity. Royal Schiphol Group has ignored important principles of slot allocation, such as providing consumers with a choice for services and products and encouraging competitive markets.

“Taking decision-making authority out of the fair and impartial global slot process and putting it in the hands of the airport would therefore be detrimental to the development of efficient air connectivity with negative impacts on individual consumers, businesses and ultimately the Dutch economy,” IATA’s statement reads.

Moreover, IATA has noted that the Rule poses a significant risk to the impartial role of slot coordinators in the EU. Implementing the Worldwide Airport Slot Guidelines (WASG) in line with the law that is currently in force is one of the fundamental principles of coordination as long as there is independence and impartiality in its implementation. However, this Rule contradicts both the EU law and WASG.

Previously, IATA urged governments to end the COVID-19 travel restrictions as these rules are hindering the recovery of air transport while criticising the lack of agreement between countries.

Source: Schengen Visa Info

Dubai hotel occupancy rates rise on Expo countdown and easing of travel restrictions

Hotels in Dubai recorded a surge in occupancy rates in September, boosted by the easing of travel restrictions and the countdown to Expo 2020 in October.

The average occupancy rate rose to 67.2 per cent in September, jumping 51 per cent compared to the same month in 2020, according to hospitality data and analytics specialist STR. September’s performance is also a month-on-month increase from occupancy rates of 58 per cent in August and 53.9 per cent in July.

“Seasonal dynamics and global travel lockdowns that contributed to some of the softness over summer are giving way to an improved travel environment driven by a combination of less-restrictive travel, Expo 2020 and improved seasonal weather,” Shady Elborno, head of macro strategy at Emirates NBD Research, said in a report on the tourism sector on October 19.

“Those factors are likely to continue to support the tourism market into the first quarter of next year, helping place the market back on to a more normalised footing after the impact of the pandemic on this economically important sector,” he added.

Dubai hotels’ September revenue per available room (RevPar) – a key performance metric calculated by multiplying a hotel’s average daily room rate by its occupancy rate – more than doubled, up 117 per cent year-on-year, to Dh271.85 ($74), according to STR data.

The city hosted 2.85 million international overnight visitors from January to July 2021, according to government data from Dubai Tourism and Commerce Marketing.

Dubai was one of the first cities globally to re-open its markets and businesses in July 2020 and continues to stay open, while ensuring strict compliance with health and safety measures. The UAE also has one of the world’s highest per capita Covid-19 vaccination rates. Covid-19 cases in the UAE this week fell to below 100 for the first time in 565 days, according to official figures.

“This bodes well for potential further loosening of restrictions with other countries, which will likely translate into higher tourist inflows with gateways where those travel restrictions are loosened,” according to the travel sector outlook by Emirates NBD, Dubai’s biggest lender.

The removal of the UAE from the UK’s red list in August, followed by the recognition of UAE-administered vaccines from October that allows travel between the two countries with no need for home isolation, “bodes well” for travel with that key source market, it said.

“Furthermore, the loosening of restriction on travel with India, the most important source market for Dubai, is another factor supporting tourist inflows, and likewise Saudi Arabia,” the report said.

Moreover, Expo 2020 Dubai has recorded more than 700,000 visits since October 1.

From October 1 to 17, a total of 771,477 ticketed visits were recorded. Visit numbers have risen by 12 per cent in a week, according to the world fair’s daily briefing. Expo 2020 has a target of 25 million visitors for the duration of the exhibition.

“We expect the global improvement in tourism dynamics, the ongoing loosening of two travel restrictions between the UAE and other countries, weather improvements, and the approach of seasonal holidays to play well in favour of Expo 2020 and overall tourism dynamics in Dubai in the near term,” Mr Elborno said.

Dubai’s non-oil sector continued its growth for the 10th consecutive month and ended the third quarter at its highest three-month average since the end of 2019, with the emirate’s Purchasing Managers’ Index standing at 51.5. A reading above 50 indicates economic expansion while one below points to a contraction.

Confidence in the travel and tourism sector reached a five-month high in September and outpaced that seen in the rest of the non-oil sector, according to IHS Markit’s Dubai PMI. Travel and tourism companies saw a sustained upturn in sales in September, which some respondents linked to increased demand in the run-up to Expo 2020.

Source: The National News

Boeing Forecasts Africa’s Airlines to Need 1,030 New Airplanes by 2040

Boeing has forecast that Africa’s airlines will require 1,030 new airplanes by 2040 valued at $160 billion and aftermarket services such as manufacturing and repair worth $235 billion.

The projection is part of Boeing’s 2021 Commercial Market Outlook (CMO), the company’s long-term assessment of demand for commercial airplanes and services.

Africa’s strong, long-term growth prospects for commercial aviation are closely tied to the continent’s projected 3% annual economic growth over the next 20 years. Initiatives such as the African Continental Free Trade Area and Single African Air Transport Market are expected to stimulate trade, air travel and economic cooperation. Additionally, the region’s middle class and working population is projected to double by the end of the forecast period, driving increased demand for air travel, according to Boeing.

The 2021 Africa CMO also includes these projections through 2040:

– Airlines in Africa will grow their fleets by 3.6% per year to accommodate passenger traffic growth of 5.4% annually, the third-highest growth rate in the world.

– Single-aisle jets are expected to account for more than 70% of commercial deliveries, with 740 new planes mainly supporting domestic and inter-regional demand. In addition, African carriers are estimated to need 250 new widebodies, including passenger and cargo models, to support long-haul routes and air freight growth.

– 80% of African jet deliveries are expected to serve fleet growth with more sustainable, fuel-efficient models such as the 737, 777X and 787 Dreamliner, with 20% of deliveries replacing older airplanes.

– Estimated demand for aviation personnel will rise to 63,000 new professionals, including 19,000 pilots, 20,000 technicians and 24,000 cabin crew members.

– Commercial services opportunities such as supply chain, manufacturing, repair and overhaul are valued at $235 billion.

“Africa has healthy opportunities to expand travel and tourism, coinciding with increasing urbanization and rising incomes,” said Randy Heisey, Boeing managing director of Commercial Marketing for Middle East and Africa. “African carriers are well-positioned to support inter-regional traffic growth and capture market share by offering services that efficiently connect passengers and enable commerce within the continent.”

Source: TNA

Regional airlines step up competition against Kenya Airways

The battle for the skies is shaping up in the East African region as airlines upgrade their fleet and expand destinations, setting the stage for heightened competition with established carriers such as Kenya Airways (KQ).

The regional airlines are also expanding their interline agreement with foreign carriers as they seek to increase their reach through codeshare.

The interline agreements and expansion of routes, mean that travellers from countries such as Uganda and Tanzania, no longer have to transit via Jomo Kenyatta International Airport to destinations where their local carriers do not fly.

Uganda Airlines, which resumed operations less than two years ago has for the first time started flights to South Africa and Dubai routes after plying within the region since its inauguration.

The Entebbe-based carrier begun the Dubai route a fortnight ago with three flights, and now wants to increase the frequencies from the current three weekly to four or five as the demand on the route grows.

“We are flying a 285-seater craft and on the first day, we flew just 80 people. On the second day, we flew 220 passengers. You can only grow a route depending on the frequency you fly and the market reaction. We will stimulate the route to about four or five times a week,” the airline’s acting chief executive Jennifer Bamuturaki said in an interview with the East African.

Emirates codeshare pact

Dubai is the carrier’s first long-haul intercontinental route, and it’s banking on high number of passengers and frequencies to maintain that destination.

The Ugandan carrier recently entered into a codeshare agreement with Emirates, allowing passengers to fly either carrier on the Entebbe-Dubai route and fly and connect with Uganda Airlines to East Africa.

Also, early this month, Air Tanzania received a delivery of two Airbus A220-300 aircraft lifting the number of this model of airbus in its fleet to four. Air Tanzania first took delivery of the A220 in December 2018, becoming the first African operator to have this type in their fleet.

The Tanzanian carrier is now ready to expand its international reach with additional aircraft that now raises its fleet to slightly over 10.

“With the addition of the A220 in our fleet, we are confident that we will expand our footprint in the growing African markets and beyond, as we unlock additional routes and regain our position as a key player in the African air transport market,” said Ladislaus Matindi, Air Tanzania managing director in a statement.

KQ-South African Airways pact

Air Tanzania and Air India early this year announced an interline agreement between the two carriers aimed at increasing connectivity for customers of both airlines.

Kenya Airways last month signed a memorandum of cooperation with South African Airways with the view to forming a pan-African Airline in future.

The cooperation will see the two carriers look at possible ways of aligning their cargo, passenger and other commercial services in order to form a single entity that will benefit from the huge market where the two airlines operate.

The carriers say the partnership will see an increase in passenger traffic, cargo opportunities, and general trade by taking advantage of strengths in South Africa, Kenya, and Africa.

Last year, Kenya Airways received permission to operate direct cargo flights between Johannesburg and other Southern Africa capitals, capitalising on the absence of South African Airways to serve that market.

Source: The Citizen