KQ gains from RwandAir cut back
Kenya Airways Ltd
Posted Fri, 06 Jan 2012
Kenya Airways looks set to capture new travellers on the Nairobi-Kigali route after its main rival RwandAir cut back its operations upon disposing of two of its aircraft. The Rwandese national carrier on Monday said it was reducing its flights to Nairobi from Kigali to two from three as it shops for additional planes to sustain its regional operations. The carrier said it’s seeking to sell two 50-seater jets that serve the Nairobi route to buy bigger jets with a carrying capacity of between 70 and 110 passengers by mid this year to capture a larger share of the growing traffic between the twin cities. This is set to open way for Kenya Airways—which is the only other airline that flies Nairobi/Kigali direct—to grow its share of the route at a moment that it’s seeking to connect more passengers from African cities to the rest of the world via its Kenyan hub. “We have seen the regional market grow and we feel the demand it presents will be better served by an aircraft with between 70 – 110 seating capacity,” said John Mirenge, the CEO of RwandAir in a statement. “However, flights to Nairobi will now be operated twice a day instead of three while Kilimanjaro and Dar es Salam will now be served with four frequencies a week as opposed to five,” added Mr. Mirenge. KQ operates between one and three daily flights on Kigali-Nairobi route depending on passenger traffic, and is eyeing more routes in Africa to boost its earnings in a continent that generates 49 per cent of its Sh85.8 billion revenue. The two cities have witnessed increased travel as trade peaks between Kenya and Rwanda. Jomo Kenyatta International Airport into a connection hub to Europe and Asia for residents in East and Central Africa. Data on passenger traffic between Kigali and Nairobi are scanty, but trade between the two countries has more than doubled in the last five years and is expected to widen further with formation of the East Africa common market. Exports to Rwanda from Kenya grew to Sh10.5 billion in 2010 from Sh4.7 billion in 2006, making it Nairobi’s fourth largest market in Africa for locally manufactured goods. This is the markets that KQ is betting on to grow its business.
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