Geza Ulole
JF-Expert Member
- Oct 31, 2009
- 65,136
- 91,917
Why should Tanzania replicate the protectionism attitude on Kenya's airlines?
During the end of November of last year the prospects of affordable aviation services became a reality when Fastjet Plc a subsidiary of Lonrho (shareholder of 61%) launched her flights within Tanzania with intentions to revolutionize the flying habit that has been strictly reserved for the haves across Africa. Fastjet aiming at applying Easyjet mode of operation that changed the vice across Europe to open up her skies as a means of affordable fast travel between cities with commercial potentials that badly need that to spur trade between cities.
However, uncharacteristically of the economic block spirit, our neighbors from the North worked behind the doors to see that is not happening be through law chambers or unfair competition. Via the use of their corrupt organs like Kenya Civil Aviation Authority (KCAA), Kenya Airport Authority (KAA) and Ministry of transport (MOT); the Kenya Airways (KQ) management in association with those authorities worked behind the clock tirelessly to frustrate issuing of flying permits to Fastjet to an extent of querying the wisdom behind hatred for fair competition, a song Kenyans are championing themselves to be leading.
If i have to ask a layman about the ongoing court saga between Fly 540 Kenya a parent company of Fastjet that also flies limitless across East African spaces, It is pretty obvious the frustrations have to do with acute protectionism attitude embroiled by most Kenyans that have made it a habit they condone at home while hypocritically condemning with all passion if their business come across the vice abroad. Within East African space, KQ that has a virtue monopoly on the East African space, has a plan to launch a budget version of their own by the name Jambojet and in the anticipation of the competition they are about to face, they secured licences without protectionist's hassles to most of East African Airports (22 in total) well ahead.
In opposite to the general acceptable business practices and accumenship in any society that embrace free market principles, Fastjet with market recapitalization of about US$ 70 mio. could not launch her operations within Kenya at the time Fastjet launched her operations in Tanzania. This was irrespective of the fact that the budget airline had followed all due procedures including agreeing with partners to operate using fly 540 licenses across Africa something clearly revealed sign of fouls being played by Fastjet's nemesis. Since, the issuance of licences to Jambojet is something all airline pundits believe have offered KQ a chance to compete on equal foot, hostility free environment with Fastjet if at all they are willing. This is in addition to the 41% stake KQ holds in Precision Air (PW) indisputable defacto National Airline in Tanzania that positions them more chances to desist any attempts to be pushed out the lucrative air business across the region.
Then why has issuance of licenses to Fastjet to fly in Kenya has been an issue? What are the East African guidelines on accessing license say to a company incorporated in a member state? Is Tanzania not being too generous to Kenyan airlines on continuing to issue license to them? Should Tanzania not consider the current crisis being a man made and not a technicality or procedural, a clear sign of hegemony aimed at frustrating business that originate from outside her soil and want to vie for business opportunities within the region? Isn't that an act of sabotage by a nation that always is naive to condemn her neighbors of xenophobia when their businesses stall in a neighbor country? Most answers for these questions can be answered by Titus Naikuni the CEO of of KQ. With the cutting throats but reasonable prices offered by Fastjet the responsible individuals within Kenya saw the danger of the new budget airline that had plans to fly across Africa the market KQ depends for for over half of her sales. But should that be a relief to most of us that can't afford flying? Furthermore, shouldn't the responsible authorities ask themselves whether prices charged by KQ and her partner PW not extortive? If Fastjet can offer US$ 20, why can KQ offer the same with her Jambojet to give more room for flying affordability?
Due to the demand of the mode of operation Fastjet has chosen, her business has to focus mainly on routes that connect cities with masses and with airports that can accommodate A319 aircraft as were compatible to their operation cost considering the fact they are charging US$ 20 per person and had assured themselves an aircraft of 150 seats could sustain her operation. Due to the presence of larger international community within Nairobi and a lucrative tourism circuit around Mombasa, flying to and fro between Nairobi and other cities across the region will offer a needed momentum to reach and sustain the operations margins needed to make cheap flights a reality.
For the sake of sanity among Kenyan Authorities and removal of Non Tariffs trade Barriers (NTTBs), I am of the opinion for Tanzanian authorities to change the way they conduct their business especially with Kenya cause doesn't embrace the spirit of common market especially with businesses originating outside their background. And for that case, i am advising the Tanzania Civil Aviation Authority together with Fair Competition Commission and Ministries of Transport, of Trade and of East Africa cooperation to safeguard and make sure the interests of Tanzania incorporated companies that vie for opportunities across the region run smoothly and reconsider the way they handle Kenyan companies since they have no respect of the generosity they are offered and their ultimate motives are to show the World that no business can survive within Tanzania an onslaught we ought to deal with squarely especially at this good moments when a country re-position herself to exploit her abundant gas natural resources.
The protectionism attitude by our neighbors should not be left hanging without a reaction since Fastjet's intention is to make flying affordable a situation that would have boost inter-connection within cities and boost trade, a thing the EAC tries to promote ever her establishment for the better welfare of East African citizens. At the moment, it is absolutely digressing from ethical practices to learn that for a flight of less than 2 hours between Dar and Nairobi one has to part with a sum of around US$ 300 while Fastjet is ready to serve the route for only US$ 20 (US$ 70 tax inclusive) if booking is done well in advance. KQ coming from loss for the revenue year 2011-2012 should restructure herself and stop this unacceptable behind the scene workings to lock out other airlines flying to her space since there is a bigger possibility of retaliation of which i encourage to root out unfair monopoly or cartel habit that is strongly and swiftly rooting within the region and about to doom the prospects of our common economic block.
During the end of November of last year the prospects of affordable aviation services became a reality when Fastjet Plc a subsidiary of Lonrho (shareholder of 61%) launched her flights within Tanzania with intentions to revolutionize the flying habit that has been strictly reserved for the haves across Africa. Fastjet aiming at applying Easyjet mode of operation that changed the vice across Europe to open up her skies as a means of affordable fast travel between cities with commercial potentials that badly need that to spur trade between cities.
However, uncharacteristically of the economic block spirit, our neighbors from the North worked behind the doors to see that is not happening be through law chambers or unfair competition. Via the use of their corrupt organs like Kenya Civil Aviation Authority (KCAA), Kenya Airport Authority (KAA) and Ministry of transport (MOT); the Kenya Airways (KQ) management in association with those authorities worked behind the clock tirelessly to frustrate issuing of flying permits to Fastjet to an extent of querying the wisdom behind hatred for fair competition, a song Kenyans are championing themselves to be leading.
If i have to ask a layman about the ongoing court saga between Fly 540 Kenya a parent company of Fastjet that also flies limitless across East African spaces, It is pretty obvious the frustrations have to do with acute protectionism attitude embroiled by most Kenyans that have made it a habit they condone at home while hypocritically condemning with all passion if their business come across the vice abroad. Within East African space, KQ that has a virtue monopoly on the East African space, has a plan to launch a budget version of their own by the name Jambojet and in the anticipation of the competition they are about to face, they secured licences without protectionist's hassles to most of East African Airports (22 in total) well ahead.
In opposite to the general acceptable business practices and accumenship in any society that embrace free market principles, Fastjet with market recapitalization of about US$ 70 mio. could not launch her operations within Kenya at the time Fastjet launched her operations in Tanzania. This was irrespective of the fact that the budget airline had followed all due procedures including agreeing with partners to operate using fly 540 licenses across Africa something clearly revealed sign of fouls being played by Fastjet's nemesis. Since, the issuance of licences to Jambojet is something all airline pundits believe have offered KQ a chance to compete on equal foot, hostility free environment with Fastjet if at all they are willing. This is in addition to the 41% stake KQ holds in Precision Air (PW) indisputable defacto National Airline in Tanzania that positions them more chances to desist any attempts to be pushed out the lucrative air business across the region.
Then why has issuance of licenses to Fastjet to fly in Kenya has been an issue? What are the East African guidelines on accessing license say to a company incorporated in a member state? Is Tanzania not being too generous to Kenyan airlines on continuing to issue license to them? Should Tanzania not consider the current crisis being a man made and not a technicality or procedural, a clear sign of hegemony aimed at frustrating business that originate from outside her soil and want to vie for business opportunities within the region? Isn't that an act of sabotage by a nation that always is naive to condemn her neighbors of xenophobia when their businesses stall in a neighbor country? Most answers for these questions can be answered by Titus Naikuni the CEO of of KQ. With the cutting throats but reasonable prices offered by Fastjet the responsible individuals within Kenya saw the danger of the new budget airline that had plans to fly across Africa the market KQ depends for for over half of her sales. But should that be a relief to most of us that can't afford flying? Furthermore, shouldn't the responsible authorities ask themselves whether prices charged by KQ and her partner PW not extortive? If Fastjet can offer US$ 20, why can KQ offer the same with her Jambojet to give more room for flying affordability?
Due to the demand of the mode of operation Fastjet has chosen, her business has to focus mainly on routes that connect cities with masses and with airports that can accommodate A319 aircraft as were compatible to their operation cost considering the fact they are charging US$ 20 per person and had assured themselves an aircraft of 150 seats could sustain her operation. Due to the presence of larger international community within Nairobi and a lucrative tourism circuit around Mombasa, flying to and fro between Nairobi and other cities across the region will offer a needed momentum to reach and sustain the operations margins needed to make cheap flights a reality.
For the sake of sanity among Kenyan Authorities and removal of Non Tariffs trade Barriers (NTTBs), I am of the opinion for Tanzanian authorities to change the way they conduct their business especially with Kenya cause doesn't embrace the spirit of common market especially with businesses originating outside their background. And for that case, i am advising the Tanzania Civil Aviation Authority together with Fair Competition Commission and Ministries of Transport, of Trade and of East Africa cooperation to safeguard and make sure the interests of Tanzania incorporated companies that vie for opportunities across the region run smoothly and reconsider the way they handle Kenyan companies since they have no respect of the generosity they are offered and their ultimate motives are to show the World that no business can survive within Tanzania an onslaught we ought to deal with squarely especially at this good moments when a country re-position herself to exploit her abundant gas natural resources.
The protectionism attitude by our neighbors should not be left hanging without a reaction since Fastjet's intention is to make flying affordable a situation that would have boost inter-connection within cities and boost trade, a thing the EAC tries to promote ever her establishment for the better welfare of East African citizens. At the moment, it is absolutely digressing from ethical practices to learn that for a flight of less than 2 hours between Dar and Nairobi one has to part with a sum of around US$ 300 while Fastjet is ready to serve the route for only US$ 20 (US$ 70 tax inclusive) if booking is done well in advance. KQ coming from loss for the revenue year 2011-2012 should restructure herself and stop this unacceptable behind the scene workings to lock out other airlines flying to her space since there is a bigger possibility of retaliation of which i encourage to root out unfair monopoly or cartel habit that is strongly and swiftly rooting within the region and about to doom the prospects of our common economic block.