KENYA: Kenya Airways To Fly 10 Times A Week On Non-stop Flights To Cape Town And Commence Daily Flights To New York In October

Kenya Airways (KQ) will fly to Cape Town 10 times weekly following the introduction of direct flights to the South African city on Wednesday.

The three non-stop flights will depart Nairobi every Wednesday, Friday and Sunday as the carrier stretches its wings to capture the African market.

We are indeed very proud to increase our frequencies to South Africa to cater for the growing number of our customers who travel between Nairobi and Cape Town.

In addition to enhancing Africa integration, this new route will be beneficial to the tourism industry as it establishes vital links with our global network, said Kenya Airways Chief Commercial Officer Vincent Coste.

The national carrier began flying the Cape Town route via Livingstone in 2016, with seven weekly flights to the South African capital. This in addition to the three non-stop flights brings the tally to 10.

The carrier is set to have its maiden flights to New York as well as introduction of direct flights to Mauritius.

The carrier already has a pre-existing code sharing agreement with Air Mauritius, which flies between Port Louis and Nairobi.

This will mean that passengers from Kenya will from June have the option of flying daily to Mauritius.

KQ flies to 42 African destinations out of a total 51 globally.

Kenya Airways is set to commence daily flights between Nairobi and New York in October, marking a milestone for the national carrier that will cut the flight time between the two cities by more than seven hours.

Travellers have begun booking advance tickets for the airline’s maiden flight to the John F. Kennedy International Airport (JFK).

Kenya Airways has already secured a landing slot at JFK.

The trans-Atlantic flights, scheduled to depart Jomo Kenyatta International Airport (JKIA) at 10:30pm every day, will last 15 hours.

This is a reduction from the current flight time of over 22 hours, including lengthy layovers.

We are currently loading the flights onto our system. We shall go live and ready for bookings on Thursday, says Kenya Airways chairman Michael Joseph in a telephone interview.

The launch of direct flights between Kenya and the United States will mark a significant milestone for the business and for the country.

Passengers travelling to JFK will arrive at 6.30 a.m., in time for morning meetings, while the return flight from JKF will depart at 1.30 p.m. and arrive in Nairobi at 10.30 a.m. the next day.

Each trip will have a maximum of 234 passengers, 204 in Economy and the rest in Business Class of the national carrier’s Dreamliner aircraft.

Kenya Airways, known in short as KQ, had announced its preference to operate the flights through a code-share partnership with US carrier Delta Airlines, its SkyTeam partner.

Delta, Virgin Atlantic and KLM Air France are KQ joint venture partner and shareholder are, however, currently working out a time-consuming merger, which has seen KQ opt to go it alone for now.

When this merger is over, we may add another flight to the US with a connecting flight through West Africa, said Mr Joseph.

The government, KQ’s top shareholder, has recently stepped up its campaign to actualise direct flights to America, with the Uhuru Kenyatta administration anticipating it will boost exports to the US and help jumpstart the tourism sector.

With about 100,000 tourists visiting Kenya every year for leisure and business, the US remains the top source of visitors into Kenya from the Americas, according to Kenya Tourism Board (KTB) data

Imports from the US stood at Sh47.8 billion in 2016, mostly consisting of machinery and equipment while exports, mostly garments and apparels, stood at Sh43.4 billion.

Kenya has recently implemented a raft of recommendations by the US government to enhance security, among them separation of passenger arrival and departure terminals, clearing the flight path and fencing off the airport.

As a result, the US Federal Aviation Administration (FAA) last February gave Kenya the Category One rating, paving the way for direct flights subject to other permits being received by the airport and KQ.

Mr Joseph now says the airline has secured all but two permits required for it to fly to the US, a position the Kenya Civil Aviation Authority (KCAA) director-general, Gilbert Kibe, confirmed.

JFK is yet to be cleared as the last point of departure, a security-based permit to be issued by the US Transportation Security Administration, said Mr Kibe.

The other outstanding permit is the technical authority to operate from the FAA. I am confident that KQ will receive the two in time.

Mr Joseph, who also exuded optimism about securing the twin clearances, said it was standard airline practice to put ticket up for sale at the closing preparatory stages of entering a new market.

JKIA’s longstanding second-class status forced passengers flying from Kenya to the US to transit through Europe, the Middle East or the four African countries, South Africa, Ethiopia, Cape Verde, and Nigeria whose airports have the designation.

Airlines plying the JKIA and JFK route include Turkish Airlines (through Istanbul), Qatar Airways (through Doha) and British Airways (through Heathrow), KLM (through Amsterdam) and Emirates (through Dubai and/or Italy).

Ethiopian Airlines and South African Airways also have flights to the US while RwandAir hopes to commence such flights later this year.

KQ’s foray into the US comes at a time when the airline is facing an uphill task to turnaround its fortunes, with a recent restructuring of its balance sheet seen as the last chance.

The airline’s management, which recently announced a Sh3.8 billion half-year net loss for the business, hopes that the new route will help boost the their flat revenues.

Imports from the US stood at Sh47.8 billion in 2016, mostly consisting of machinery and equipment while exports, mostly garments and apparels, stood at Sh43.4 billion.

Kenya has recently implemented a raft of recommendations by the US government to enhance security, among them separation of passenger arrival and departure terminals, clearing the flight path and fencing off the airport.

As a result, the US Federal Aviation Administration (FAA) last February gave Kenya the Category One rating, paving the way for direct flights subject to other permits being received by the airport and KQ.

Mr Joseph now says the airline has secured all but two permits required for it to fly to the US, a position the Kenya Civil Aviation Authority (KCAA) director-general, Gilbert Kibe, confirmed.

JFK is yet to be cleared as the last point of departure, a security-based permit to be issued by the US Transportation Security Administration, said Mr Kibe.

“The other outstanding permit is the technical authority to operate from the FAA. I am confident that KQ will receive the two in time.”

Optimistic

Mr Joseph, who also exuded optimism about securing the twin clearances, said it was standard airline practice to put ticket up for sale at the closing preparatory stages of entering a new market.

JKIA’s longstanding second-class status forced passengers flying from Kenya to the US to transit through Europe, the Middle East or the four African countries — South Africa, Ethiopia, Cape Verde, and Nigeria — whose airports have the designation.

Airlines plying the JKIA and JFK route include Turkish Airlines (through Istanbul), Qatar Airways (through Doha) and British Airways (through Heathrow), KLM (through Amsterdam) and Emirates (through Dubai and/or Italy).

Ethiopian Airlines and South African Airways also have flights to the US while RwandAir hopes to commence such flights later this year.

KQ’s foray into the US comes at a time when the airline is facing an uphill task to turnaround its fortunes, with a recent restructuring of its balance sheet seen as the last chance.

The airline’s management, which recently announced a Sh3.8 billion half-year net loss for the business, hopes that the new route will help boost the their flat revenues.

Kenya Airways' destinations outside Africa are:

- Guangzhou, China

- Paris, France

- Hong Kong, China

- Mumbai, India

- Amsterdam, Netherlands

- Jeddah, Saudi Arabia

- Bangkok, Thailand

- London, United Kingdom

- Hanoi, Vietnam

- Dubai, UAE

Kenya Airways (KQ) has been feted as Africa’s leading airline at the 24th Annual World Travel Awards held in Kigali, Rwanda.

This is the second consecutive year the national carrier has won the coveted title, beating other nominees including South African Airways, RwandAir, EgyptAir and Royal Air Maroc.

KQ was also named the winner in the Business Class category for the fifth consecutive year, while Ethiopian Airlines bagged the award in the Economy Class category - winning it for the fifth year in a row.

Winning these awards would not have been possible without the passion and dedication of the Kenya Airways team and the strong support from our guests.

Our guests are at the heart of everything we do at the airline and these two awards confirm our undeterred commitment to them, said KQ boss Sebastian Mikosz in a statement Wednesday.

Ethiopian Airlines was feted as Africa's leading airline brand, coming out tops in the category against Kenya Airways, South African Airways, RwandAir, EgyptAir, Tunisair and Royal Air Maroc.

Cape Town International Airport in South Africa was named the region's leading hub while Diani Beach in Kenya was named as Africa's leading beach destination.

The World Travel Awards serve to recognise, reward and celebrate excellence across all sectors of the global travel and tourism industry within each key geographical region.

Last year's ceremony was held in Zanzibar, Tanzania.


Tourism Observer

KENYA: Kenya Airways, Air France And KLM In Partnership - Higher Fuel Costs Reason For KQ High Losses

Air France has formally joined the Kenya Airways and KLM joint venture (JV), as the French carrier launched direct flights between Nairobi and Paris.

The new agreement, which was signed Monday, allows passengers to connect to 26 and 57 other destinations beyond Nairobi and Paris, respectively.

Air France, which merged with KLM in 2004, will operate three weekly flights between Nairobi and Paris.

The airline will fly the latest-generation Boeing 787 on this route, the Dreamliner with 30 seats in Business class, 20 in Premium Economy class and 225 seats in Economy class.

Air France, KLM and KQ customers will also reserve flights operated on a code share basis by one of the three airlines on Amsterdam and Nairobi routes following signing of the partnership.

We are back on the Nairobi and Paris route because of the growing economic ties between the two countries.

To date, we have over 80 French companies that have selected Nairobi as their regional hub and this is one of the many opportunities we are looking to tap.

Our latest route will serve to strengthen our African routes, said Air France, senior vice president Africa, Frank Legre.

The agreement allows the three carriers to conduct concerted marketing and sales activities, align and coordinate pricing of tickets as well as exchange of staff in select areas.

KLM and KQ entered into a master co-operation agreement in 1995, which has seen them share revenues on certain routes based on a pre-determined ratio after deducting expenses.

We are accelerating our offensive on the long haul flights by forging partnerships and new alliances. We are set to unveil new routes and partnerships soon said Air France, Executive Vice President, Customer Division, Anne Rigail.

Meanwhile, Kenya Airways is set to introduce a more spacious but higher-priced Economy class on its nine Dreamliner aircraft in a bid to grow its revenues.

The national carrier, known as KQ by its international code, says it will increase the recline angle and legroom on 27 seats currently assigned to Economy class and charge up to Sh10,200 more for the convenience.

KQ made the announcement Wednesday when reporting that its revenue for the nine months to December stood at Sh80.8 billion and that its net loss for the period was Sh6.1 billion.

Any time one of the aircraft is grounded for an extended period, we shall make the necessary adjustments to the first three rows in Economy, said Vincent Coste, KQ’s chief commercial officer.

Customers can book these seats for between $50 and $100 depending on the season and length of the flight.

Airlines have over the years increasingly paid more attention to business class customers who pay significantly higher than their fellow passengers on the same trip.

Offerings such as bars and lie-flat beds aimed at increasing the cabin space for this special set of passengers have, inevitably, disenfranchised those who sit in Economy class.

KQ is now looking to book extra ancillary revenue from this new offering which it says has proved successful including among its partner airlines such as KLM and Air France.

Dreamliners are the commonly used aircraft on long-haul routes such as Europe and the upcoming one to New York hence KQ’s decision to retrofit for extra comfort to woe customers.

This aircraft has 30 seats in Premier World or Business class and 204 in Economy.

At the moment, the airline charges between Sh3,100 and Sh11,780 for passengers in need of seats with extra legroom, with the cost varying depending on the length of the flight and your loyalty programme ranking.

National carrier Kenya Airways’ shareholder value has moved into positive territory riding on last year’s balance sheet restructuring that reduced its annual debt payment obligations, leaving room to revamp its operations.

KQ’s equity position stood at Sh417 million in the nine months between April and December 2017 compared to negative Sh45 billion in the year to March 2017, according to a financial report that was released.

The change in fortunes follows a complex restructuring of the business that saw Kenya Airways main creditors, 10 commercial banks and the government convert Sh44.2 billion loans into equity to save it from total collapse.

Financial results that were released on Wednesday, however, show that Kenya Airways is still a multi-billion shilling loss-making operation that produced a Sh6.08 billion loss for the nine months to December 2017.

The results do not have a comparable period because KQ has changed its reporting period from March to the calendar year.

Michael Joseph, who chairs the company’s board, said the change in reporting cycle has been done to sync the airline’s books with those of stakeholders such as travel agents, financiers and lessors.

We are now concentrated on the industrial restructuring of the business, which includes finding ways of increasing our revenues and keeping costs at a manageable level, he said.

KQ’s precarious equity position that left it with less assets than its debt load meant that if it were to be liquidated, shareholders would be left with nothing.

Kenya Airways’ total debt now stands at Sh139.6 billion compared to total assets of Sh140.1 billion.

The airline made loan repayments of Sh9.1 billion during the period under review, a significant drop from the Sh25 billion paid out in the full year to March 2017.

Despite this improvement in its leverage, the carrier posted a loss for the nine months to December mainly driven by a 14 per cent increase in fuel costs and a 20 per cent drop in customer numbers.

KQ airlifted 3.4 million passengers during the nine months to December earning Sh80.8 billion in revenues but its operating costs consumed Sh79.5 billion.

Sebastian Mikosz, the airline’s chief executive, said attention is now turning to route expansion, cost optimisation and improvement of service delivery.

Top on the list are the direct and daily New York flights set to commence in October and which Mr Mikosz expects to boost KQ’s revenues by between eight and 10 per cent.

Kenya Airways (KQ) has posted a Sh6.1 billion net loss for the nine months to December as it announced a change in its financial calendar to sync with the calendar year.

The national carrier's management has attributed the loss position to higher fuel costs and the negative impact of a prolonged electioneering period.

Fuel costs, which went up 14 per cent in the period, remain the biggest challenge to KQ's profitability.

However, the airline is optimistic of 2018's outlook amid a planned rollout of daily flights between Nairobi and New York this October, non-stop flights to Cape town and direct flights to Mauritius.

Chief executive Sébastian Mikosz said the full financial impact of the new US route will be felt in 2019, adding he expects a revenue boost of between 8 and 10 per cent.

The firm will be recalling its Dreamliner from Oman Air to serve this long haul route.

Kenya Airways will, in partnership with its European partners, roll out economy comfort class on all aircraft in the next 12-15 months as part of its strategy to increase revenues.

Michael Joseph, KQ's chairman, said Wednesday at an investors' briefing that Polish consultants are still part of the team alongside consultants from other countries, adding that focus on the Polish misplaced.



Tourism Observer