Kenya Airways

Rapidly expanding Kenya Airways charts growth with plan to serve every inhabited continent by 2017

Kenya Airways plans to launch its first services to North America, South America and Australia by 2017, making it one of the few carriers to serve every inhabited continent. While these three continents will give Africa's currently fifth-largest airline by seats a global presence, its future is pegged on Asia, with the carrier over the next 10 years planning to launch seven new routes into China, six in the Indian Subcontinent and three across North and Southeast Asia as well as having a growing presence in Europe and the Middle East. It is poised to become Africa's largest carrier.

Growth will be fuelled by Africa's status as a burgeoning market, as well as reliance on partners: Kenya Airways will open routes to SkyTeam member hubs in Xiamen (Xiamen Airlines), Hanoi (Vietnam Airlines), Seoul (Korean Air), Moscow (Aeroflot) and Prague (Czech Airlines). The intercontinental focus follows Kenya's strong emphasis on regional Africa, with the carrier aiming to serve every African nation by the end of 2013. 

Simple ownership change to forgive USD150m of debt is not enough to place Air Zimbabwe back on track

Zimbabwe has forced the issue of rising debt at national carrier Air Zimbabwe by disbanding the airline, officially known as Air Zimbabwe Holdings, and re-launching it as Air Zimbabwe Private Limited. Local reports have put the carrier's debt at USD150 million, USD30 million of which is owed internationally, including in the US and China. The ownership structure of the new airline has not been disclosed, although the Government is reportedly trying to woo investors.

The move is not a cure-all. Before the new carrier can be taken seriously, it needs not only independent management but also structural changes within government to benefit the country and trickle down to the airline.

Kenya Airways plans further growth for Middle East, Central Asia and Indian subcontinent

In addition to Kenya Airways’ goal to serve every city on the African continent by 2014, which is running slightly behind schedule, it is also interested in expanding beyond Africa and plans to commence service to Beirut “very soon”, increase its service to India, resume service to Karachi in Pakistan, and is considering entering the Central Asian market. The carrier is keen to enter new markets and plans to use Dubai as a transit city for some of the planned new routes.

Kenya Airways profit down, but moving ahead with plan to serve six new Chinese destinations

Kenya Airways remained profitable for the six months ended Sep-2011, despite high oil prices and the European economic climate, due to strong passenger demand and its continuing route expansion. The East African carrier plans to continue with its aggressive expansion plans, aiming to begin additional services to major trading partners China and India in the near future. Kenya Airways’ board of directors approved the carrier’s planned rights issue in the period, which will fund the planned route and fleet expansion. The board also approved the doubling of the carrier’s share capital to KES300 billion (USD3.0 billion) ahead of the cash call.

Kenya Airways has remained tight-lipped about its LCC subsidiary Jambo Jet’s progress, only revealing it will operate all, and possibly more, of its parent’s East African routes. If this is the case, Kenya and East Africa’s domestic and regional capacity share will be given a major shake-up as a LCC will become one of the region’s largest carriers.

Ethiopian Airlines aims to become the largest carrier in Africa by 2025

Ethiopian Airlines is one of the largest and most profitable carriers in Africa. It has 34 aircraft on order, including 10 B787-8s with a network of 56 international destinations and 17 codeshare partners.

It plans to join Star Alliance and in 2010 had an operating profit of ETB1.6 billion (USD92 million). Ethiopian has forged a successful path for its expansion plans and has come a long way since its beginnings as a joint venture between the Ethiopian Government and Trans World Airlines.

The carrier has set an ambitious, but realistic, 15-year strategic plan that includes becoming the single largest airline in Africa. It intends to generate revenues of ETB171 billion (USD10 billion) per year, acquire a fleet of 70 aircraft and improve its Skytrax customer service ranking from three to four stars.

If successful, the plan would make Ethiopian Airlines the largest and most profitable carrier in Africa.

Europe-Africa routes heavily concentrated across a few points

Africa, once carved up by European powers, retains air links reminiscent of those historic ties. Even so, in too much of the continent, service remains spotty. The CAPA routes tool breaks African searches into four categories: North, South, East and West/Central. But in terms of seat offers available, the real division is between North Africa, those countries bordering the Mediterranean – and everything else. This examination will utilise this format, beginning with everything else.