Kenya Blocks Ethiopian on Kampala Route
The spirit of the Comesa Open Skies Agreement is being severely tested by the continuing failure of the Kenya Civil Aviation Authority, to allow Ethiopian Airlines to operate daily flights on the Entebbe-Nairobi route. In May, the Addis Ababa-based carrier announced that it was resuming the flights it had suspended in 2005, with the relaunch planned for June 4. The flights were scheduled to depart from Entebbe daily at 13:00hrs, two hours ahead of Kenya Airways' afternoon departure to Nairobi. The announcement brought immediate relief, with fares crashing from a peak of $295 to $200 for the 55-minute flight, currently monopolised by Kenya Airways. However, the Ethiopian Airways flights did not resume as scheduled, and the carrier now blames the Kenya Civil Aviation Authority (KCAA), accusing it of denying it landing rights. The dispute could trigger a backlash against Kenya Airways, with travel agents in Uganda suggesting that Kenya is protecting the interests of its national carrier to the detriment of Ugandan travellers. Although Kenya Airways has recently gone on a charm offensive, offering discounted prices to East African destinations – Dar es Salaam, Kampala and Mombasa – on selected flights, the travel industry still feels that travellers are getting a raw deal in the absence of competition on the Nairobi-Kampala route. More than a month after the failed relaunch of Ethiopian flights to Kampala, the airline now says it has no idea when KCAA is likely to grant it landing rights. KCAA declined comment on the matter. \"We don’t have the landing rights, we don’t know when we are likely to get them and we did not expect this because it smacks of monopolistic tendencies, Ethiopian Airlines area manager for Uganda Ermejachew Regassa told The EastAfrican. Ms Regassa said the matter could escalate to government level, with Addis Ababa coming to the defence of its national carrier. Speaking from Addis Ababa, Ethiopian Airlines public relations manager Kagnew Fiseha said, \"We are still discussing the matter but it is likely to take some time to reach an agreement because we applied to operate under the Fifth Freedom Rights. This is still something new here and the two civil aviation authorities (in Kenya and Uganda) have to concur, but we believe we shall come to an agreement.\" Ethiopia had applied for the landing rights based on the provisions of the Comesa Open Skies Agreement, endorsed by member states in August 1999, which allow unlimited air services by Comesa-registered carriers within member states. Under the Fifth Freedom Rights provided by the protocol, carriers can operate beyond the scope of the Bilateral Air Service Agreements (Basa) which normally would prevent operations such as those proposed by Ethiopian Airlines between Entebbe and Nairobi. The first phase of the agreement, which became operational in October 1999, allowed Comesa-registered airlines to operate on the cargo charters of member countries without hindrance. Phase two, which became operational in 2000, allows Comesa airlines – other than the member states' national carriers – to offer passenger services to destinations within the bloc. Ironically, citing the same protocol, Kenya Airways last year refused to give up two frequencies in favour of Ugandan carrier East African Airways, which eventually ended up grounded. Recently, citing the same agreement, Kenya Airways won back a fourth daily flight to Entebbe, fully sealing off both ends of the market. The delays in resumption of Ethiopian Airline flights have not gone down well with Uganda’s travel industry, with complaints that the high ticket price between Entebbe and Nairobi, itself the result of lack of competition, was having a negative impact on Uganda’s tourism growth since it made Uganda an expensive destination. Two years ago, research carried out by Ireland-based Travel and Tourism Consult International on behalf of the Uganda Sustainable Tourism Programme revealed that the absence of direct flights to Entebbe and lack of competition had made Uganda an expensive destination. Based on departures from New York during peak season, the results showed that it was cheaper to travel to Johannesburg or Nairobi than Entebbe, even when the flights first stopped in Uganda. Industry watchers have told The EastAfrican that, apart from playing for time to allow Kenya Airways to re-align itself to competition, KCAA will eventually have to relent as continued denial could set a precedent that could hurt Kenya Airways' expansion plans in Comesa countries, if member states take the cue and reciprocate. The impact of Ethiopian Airlines on the route is also debatable as the flights specifically target the point-to-point segment of the market, which only constitutes about 30 per cent of all departures from Entebbe through Nairobi. This segment is also tilted in KQ's favour because it is dominated by business travellers who require early morning departure and late return. KQ has both, while Ethiopian Airline’s mid-afternoon departures and returns will be trying to attract the minimal leisure travel segment, already weighed down by high taxes on air travel and competition from road transport.