Competition among airlines has now shifted to the cargo business which many have taken up following cessation of passenger flights across the globe.
Airlines are converting their passenger planes into cargo carriers to keep aircraft running and earn some revenue.
Kenya Airways which has joined the fray could be forced to re-adjust its freight charges to survive the high competition in the cargo business.
The carrier is currently charging $3 (about Sh321) per kilo of cargo, according to fresh produce exporters, which is high compared to some competitors such as Ethiopian Airmeeting, lines and Qatar Airways who are charging $2 (about Sh214).
“KQ is expensive compared to competitors,” notes Edward Mureu, the proprietor of Naivasha based Rubi ranch.
According to the East African Business Council (EABC) airfreight charges to the European Union and other markets in the last few weeks have ranged from $3 and $7(Sh749) per kilo up from an average of $1.50(Sh160)–$2.50(Sh267) per kg.
“The high air freight charges can be attributed to a combination of factors. These include higher operating costs, fewer scheduled or chartered flights, and a supply and demand imbalance,” EABC chief executive Peter Mathuki said.
In Kenya, for example, the volume of fresh produce out of Jomo Kenyatta International Airport (JKIA) has reduced from a weekly 5,000 tonnes to 1,300, a 75 per cent decline with similar trends reported across the region. This has left few volumes up for grabs by carriers. Costs, however, continue to ease with more scheduled capacity provided by KLM, Qatar and Ethiopian Airlines.
KQ, as it is known by its international code, has converted four of its passenger aircraft into cargo carriers, a measure to lessen the impact of Covid-19, which has seen a cut on international travel, with the airline grounding its fleet.
Last Thursday, the airline flew a Boeing 787 Dreamliner to London with 40 tonnes of fresh produce consisting of vegetables and flowers.
It has been depending on two-boeing 737-300 cargo aircrafts for haulage.
“We are exploring different options to keep the lights on in the organization. Cargo is one of those areas,” CEO Allan Kilavuka said.
This week, Air France KLM Martinair Cargo launched two cargo flights a week between Nairobi and Amsterdam. The Tuesday and Sunday flights will see the carrier export 45–50 tonnes of cargo from Kenya.
This is in adition to existing full freighter flights Air France KLM Martinair is regularly operating.
The move adds pressure on airlines at JKIA– KQ’S hub, which accommodates over 40 passenger airlines and 25 cargo airlines.
Other cargo operators include Lufthansa Cargo, emirate Sky cargo, cargo lux, Ethiopian airlines, Saudia Airlines, Etihad Crystal Cargo and Egypt Air. Others are Singapore Airlines, Qatar Airlines, Turkish Cargo, mk Airline and Swiss World cargo.
Source: https://www.pressreader.com/kenya/the-star-kenya/20200423/281771336334747
