Nairobi now limits flights to turn around Kenya Airways’ fortunes

Nairobi now limits flights to turn around Kenya Airways’ fortunes

eddy25r said:
Just imagine ..maua yamefikisha kenya that stage...na tukianza oil ...
Click to expand...
This is what Museveni was saying last week, the EPA contract will benefit some countries in EAC, and hinder the others. Kenya will sale flowers, but what will Burundi or South Sudan sale. Are we in the process of creating imbalance EAC so that Kenya to flourish?
 
Mwanzi1 said:
This is what Museveni was saying last week, the EPA contract will benefit some countries in EAC, and hinder the others. Kenya will sale flowers, but what will Burundi or South Sudan sale. Are we in the process of creating imbalance EAC so that Kenya to flourish?
Click to expand...
These states should be working on their competitive advantage. This fearful mentality will be the death of your countries.

Kenya is looking beyond flowers! Think big.
 
Mwanzi1 said:
This is what Museveni was saying last week, the EPA contract will benefit some countries in EAC, and hinder the others. Kenya will sale flowers, but what will Burundi or South Sudan sale. Are we in the process of creating imbalance EAC so that Kenya to flourish?
Click to expand...
Lakini mbona mawanzo bonzo??
 
Mekatilili said:
These states should be working on their competitive advantage. This fearful mentality will be the death of your countries.

Kenya is looking beyond flowers! Think big.
Click to expand...

Let me guess, you're not thinking about EAC when you wrote this. This has been Kenyan mentally all along, selfish and nothing but selfish.
 
Mekatilili said:
These states should be working on their competitive advantage. This fearful mentality will be the death of your countries.

Kenya is looking beyond flowers! Think big.
Click to expand...
So what is beyond flowers??
 
eddy25r said:
Look up meaning of diversification ...kenya does not depend on one source for its gdp (also tz ) flowers are not the only kenyan source of income .
Click to expand...
Ok.. ila mjue hiyo EPA hatutoipitisha..
 
Danger is real fear is choice

Rufiji said:
When it comes to hypocrisy, one has to tip his/her hat to our neighbors to the north. These people have been telling us, for sometimes now, the importance of opening up our market and in turn allow competition from across the globe. Surprisingly, they have different standards when it comes to protecting their market. They will do whatever it takes, including protectionism, to ensure their below par companies stay afloat.

Source: Nairobi now limits flights to turn around Kenya Airways’ fortunes

Nairobi now limits flights to turn around Kenya Airways’ fortunes

In Summary

  • Kenya hastily withdrew a licence that had been granted to Emirates Airline to operate a third daily flight on the Dubai-Nairobi route.
  • It also put on hold licence applications from at least 35 airlines, most of which are seeking approvals to either increase their frequency to Nairobi or switch to larger aircraft to increase capacity.
  • Kenya says is not reinventing the wheel — considering that Gulf airlines specifically Emirates, Etihad and Qatar Airways — have achieved phenomenal growth due to protectionism and subsidies by their governments.
Kenya is limiting the issuing of new licences for global airlines seeking to exploit the strategic Nairobi hub in a protectionist move aimed at reviving the dwindling fortunes of national carrier Kenya Airways.

The policy shift is already being applied after the government hastily withdrew a licence that had been granted to Emirates Airline to operate a third daily flight on the Dubai-Nairobi route, which would have increased its frequency between the two cities to 21 a week.

The government has also put on hold licence applications from at least 35 airlines, most of which are seeking approvals to either increase their frequency to Nairobi or switch to larger aircraft to increase capacity.

“Emirates can confirm that the approval granted to operate a third daily flight between Dubai and Nairobi has been withdrawn by the Kenyan transport authorities,” the airline said in a statement recently.

The statement added that the withdrawal of the licence was surprising because there is a valid Bilateral Air Services Agreement (BASA) between Kenya and United Arab Emirates, which allows the airline to operate flights to Nairobi’s Jomo Kenyatta International Airport without any restrictions.

But speaking to The EastAfrican, Kenya’s Transport Ministry Principal Secretary Irungu Nyakera said the withdrawal of the licence is part of the government’s plans to protect the Nairobi hub strategically for KQ, which despite being a private company is Kenya’s national carrier. He said that the government informed the UAE of its intentions to review the existing BASA.

“We need to protect the Nairobi hub specifically for KQ. Increasing the frequency of other airlines to the Nairobi hub is only hurting the national carrier,” he said.

He added that Kenya is not reinventing the wheel — considering that Gulf airlines specifically Emirates, Etihad and Qatar Airways — have achieved phenomenal growth due to protectionism and subsidies by their governments.

According to Mr Irungu, the fact that KQ cannot compete with the highly subsidised Gulf airlines and state-owned Ethiopia Airlines in terms of pricing, has forced a rethink on allowing more foreign airlines into the Kenyan airspace.

In 2015, a report by top US airlines accused the three Gulf airlines of receiving subsidies from their governments amounting to $42 billion.

The report says that the three carriers had benefited unfairly from huge interest-free loans, subsidised airport charges, government protection on fuel losses and below-market labour costs.

European Union

“Kenya is doing what the US and the European Union are doing, limiting the frequency of Middle East carriers because they have realised they are killing their own airlines, leading to job losses,” said Mr Irungu.

The fact that KQ is losing out to Gulf airlines on some of its key routes became evident after the airline recorded a 15.6 per cent plunge in capacity on the Middle East and Far East routes with passenger traffic declining by 6.8 per cent to close the third quarter ending December 2016 at 138,700 passengers.

The airline attributed the decline to its decision to deploy the Boeing 787-8 and Boeing 737-800 aircraft on the routes as opposed to the Boeing 777-300, which has a higher capacity.

Kenya has invested massively in the expansion and upgrading of JKIA, which has seen Nairobi emerge as a premier aviation hub connecting Africa with Europe, the Middle East, Asia and the Far East.

Due to its strategic location, coupled with the fact that KQ has been tottering on the brink of insolvency, several global airlines have been seeking not only to fly to Nairobi but also to increase their frequency to exploit KQ’s downturn.

The ease with which the government had hitherto granted new licences is cited as one of the reasons for KQ’s misfortunes, having lost dominance in key destinations like West Africa and the Far East mainly to Middle East carriers, Turkish and Ethiopian airlines.

The situation has been exacerbated by the fact that in East Africa, it is only Kenya Airways that can compete at the global level.

Rwanda is still building RwandAir — its national carrier — and Tanzania’s Air Tanzania is struggling to take off while Uganda continues to be indecisive over the revival of Uganda Airlines.

According to OAG, a UK-based air travel intelligence firm, Gulf airlines dominate the Africa-Middle East route, accounting for 60 per cent share of seat capacity. Emirates has the biggest share at 20 per cent.

African airlines — mainly KQ, Ethiopian Airlines, and South African Airlines, excluding Egypt Air — account for a mere 10 per cent share of the route.
Click to expand...
 
Kafrican said:
tanzania is just a wierd ,scared paranoid girl, tanzanias "protectionism" is driven by fear (scaring the public into submission without providing facts) and generally lack of knowledge in the public.....

unlike Kenya where protectionism arises from real danger arising from facts on the ground and most importantly economic sense.... like how we have been trying to restrict importation of tax free sugar because our local markets wont handle it because they are dying as it is, we have been takingbthat time to try to improve our local industry, meaning eventually we will allow that duty free import....
even this restriction for KQ, its just a temporary thing untill we get our house in order...

while Tz on the other hand for example have been feared into submission by ccm that if they allow free movement of people then Kenyans will take all their lanf..... that is a baseless argument that cannot be proven... rwanda,Uganda allow free movement of Kenyans and there havent been any influx of Kenyans there
Click to expand...
Craaaap!kenya always play cry baby!
 
eddy25r said:
No problem .. even if you dont pass it ..we can weather the storm ...after all we are a resilient nation and its not the end of the world
Click to expand...
Resilient nation my fart, al shabaab anawaua kama njiwa..they hit you even in the central Nairobi ie westgate..Ask M23 they will tell you what Tz is made of..
 
Mauza uza said:
Resilient nation my fart, al shabaab anawaua kama njiwa..they hit you even in the central Nairobi ie westgate..Ask M23 they will tell you what Tz is made of..
Click to expand...
[emoji23][emoji23][emoji23]najua hata hujui maana ya resilience.Just imagine ...alshabab has managed to hit kenya where it hurts (tourism) and somehow the country tries to go on even with the challenges posting a 6% growth rate last year even when everything seemed bad ....I know kenya is not perfect and all kenyans know that ,but we know how to survive out of nothing..Actually the europe deal wont kill us (might affect us)but it will make us even tougher.See the more you through challenges at a resilient nation,the more they toughen up.I know tz has a good point not allowing the deal but it doesn't mean that this is the end for kenya [emoji2]
 
Mauza uza said:
Resilient nation my fart, al shabaab anawaua kama njiwa..they hit you even in the central Nairobi ie westgate..Ask M23 they will tell you what Tz is made of..
Click to expand...
And don't tell me shit about the Tanzanian army.We all know they are inexperienced for years.Tanzanian army has never dealt with terrorist so it can't tell the kenya how to deal with them.
 
Mauza uza said:
Resilient nation my fart, al shabaab anawaua kama njiwa..they hit you even in the central Nairobi ie westgate..Ask M23 they will tell you what Tz is made of..
Click to expand...
Hahahaha!!! Tanzania yenye anga yake inalindwa na Kenya?? One radar only that can not see around the country?? By the way, do you know that it is Kenya that monitors your spaces All the way along your coast??
 
eddy25r said:
And don't tell me shit about the Tanzanian army.We all know they are inexperienced for years.Tanzanian army has never dealt with terrorist so it can't tell the kenya how to deal with them.
Click to expand...
Fucking idiot! You dont know anything about TZ army, FYI we are one of the best army in eastern and central africa.
 
Mauza uza said:
Fucking idiot! You dont know anything about TZ army, FYI we are one of the best army in eastern and central africa.
Click to expand...
Leta proof .hakuna war mmeenda ndo muitwe best , uganda and kenya surpass you in weapons and military budgets and experience ...wauganda wanaexperience kupigana na LRA ,sisi na Alshabab ..a military is rated by its experience ...sasa nini tz imefanya ...
 
You must log in or register to reply here.

Our Community

Regional Communities

Back
Top Bottom
Menu
Forums
New posts
Log in
Register