SAA stops flights to KGL
Michael Wakabi Nairobi Rwandair Express has taken over all direct flights between Kigali and Johannesburg as the other operator on the route, South African Airways, withdraws from it. With South African Airways out of the way, Rwandair will now enjoy a monopoly on the route. SAA is understood to have found it cheaper to let Rwandair operate all flights out of Kigali and then feed off them for its onward destinations. The arrangement, described as a win-win situation by both airlines, has seen Rwandair's frequency to Johannesburg increase from two flights a week, to three. Sources at Rwandair, which took over SAA's lone Wednesday flight on December 27, say this will help the airline win back some of the market share it was losing to Kenya Airways for lack of a schedule that allowed travellers more flexibility. Until now, Rwandair has been flying to Johannesburg on Mondays and Fridays while SAA operated the Wednesday flight. That meant longer stays before the return flight, forcing business travellers to connect south through Nairobi, which offers four flights out daily. Under a new code share agreement reached late October, SAA withdrew its direct service to Kigali, opting for an interline agreement under which it will pass on Kigali bound traffic to Rwandair. An official at the airline said both carriers would benefit from the move, with SAA saving on direct operating costs while Rwandair will see better load factors and global reach. "Volumes are likely to appreciate on our direct services to Johannesburg and Nairobi because of increased visibility globally, and the ability to feed from SAA's global network," he said. SAA operates two daily flights to Nairobi, meaning that Rwandair, which carried just over 60,000 passengers in 2005, can pick up any onward traffic from this service, further boosting its numbers. As SAA subscribes to a wide array of passenger distribution systems, Rwandair, which subscribes to only three, will see these benefits rub off as it can tap into SAA other partnerships. Load factors on the Johannesburg sector averaged 35 per cent for Rwandair in 2005; this is expected to receive a boost. However, with older fuel-thirsty aircraft, the carrier will be hard pressed to enhance yields on the growing volumes. Rwandair operates dated MD82 aircraft for its medium-haul services but a fleet upgrade to more fuel efficient types has been held back by an ongoing privatisation programme. "Because of the restrictive nature of lease agreements and the fact that we are targeting an airline partner with better technical resources, it was felt that new fleet acquisitions may actually weigh down the divestiture," a Rwandair source said. It is understood that the Rwandan government, which holds a 76 per cent stake in the airline, plans to reduce it to 20 per cent with the rest going to a core investor and local Rwandan investors. The Rwandair fleet is currently made up of two leased aircraft - an MD82 for medium haul flights and a Dash 8-200 for domestic and short haul regional flights. Although Rwandair is attempting to make its presence felt, it is likely to take some time to challenge Kenya Airways' supremacy in the region. Still, only a decade ago, Kenya's national carrier was on its knees because of huge debts, a bloated workforce and inefficiency. Today, the airline is one of the most profitable in Africa. Last year, for the fifth time in seven years, it scooped Africa's airline awards, beating other heavyweights such as Ethiopian, Egypt Air and South Africa Airlines. Towards the end of last year, the airline was voted the Most Promising African Airline by Aviation and Allied Business Update, the premier aviation industry journal of Nigeria. The award was given because of the airlines's consistency in growth. It was termed the fastest growing airline on the continent and a success story of privatisation. Assets highlighted included its modern fleet, impressive financial performance, route network, staff training and information technology. KQ carried 2.4 million passengers in 2005, a 17 per cent increase on 2004. The strongest growth was registered on African routes, with West and Central Africa leading with 26 per cent, followed by Southern Africa, North Africa and East Africa at 22 per cent, 21 per cent and 5 per cent respectively.
Michael Wakabi Nairobi Rwandair Express has taken over all direct flights between Kigali and Johannesburg as the other operator on the route, South African Airways, withdraws from it. With South African Airways out of the way, Rwandair will now enjoy a monopoly on the route. SAA is understood to have found it cheaper to let Rwandair operate all flights out of Kigali and then feed off them for its onward destinations. The arrangement, described as a win-win situation by both airlines, has seen Rwandair's frequency to Johannesburg increase from two flights a week, to three. Sources at Rwandair, which took over SAA's lone Wednesday flight on December 27, say this will help the airline win back some of the market share it was losing to Kenya Airways for lack of a schedule that allowed travellers more flexibility. Until now, Rwandair has been flying to Johannesburg on Mondays and Fridays while SAA operated the Wednesday flight. That meant longer stays before the return flight, forcing business travellers to connect south through Nairobi, which offers four flights out daily. Under a new code share agreement reached late October, SAA withdrew its direct service to Kigali, opting for an interline agreement under which it will pass on Kigali bound traffic to Rwandair. An official at the airline said both carriers would benefit from the move, with SAA saving on direct operating costs while Rwandair will see better load factors and global reach. "Volumes are likely to appreciate on our direct services to Johannesburg and Nairobi because of increased visibility globally, and the ability to feed from SAA's global network," he said. SAA operates two daily flights to Nairobi, meaning that Rwandair, which carried just over 60,000 passengers in 2005, can pick up any onward traffic from this service, further boosting its numbers. As SAA subscribes to a wide array of passenger distribution systems, Rwandair, which subscribes to only three, will see these benefits rub off as it can tap into SAA other partnerships. Load factors on the Johannesburg sector averaged 35 per cent for Rwandair in 2005; this is expected to receive a boost. However, with older fuel-thirsty aircraft, the carrier will be hard pressed to enhance yields on the growing volumes. Rwandair operates dated MD82 aircraft for its medium-haul services but a fleet upgrade to more fuel efficient types has been held back by an ongoing privatisation programme. "Because of the restrictive nature of lease agreements and the fact that we are targeting an airline partner with better technical resources, it was felt that new fleet acquisitions may actually weigh down the divestiture," a Rwandair source said. It is understood that the Rwandan government, which holds a 76 per cent stake in the airline, plans to reduce it to 20 per cent with the rest going to a core investor and local Rwandan investors. The Rwandair fleet is currently made up of two leased aircraft - an MD82 for medium haul flights and a Dash 8-200 for domestic and short haul regional flights. Although Rwandair is attempting to make its presence felt, it is likely to take some time to challenge Kenya Airways' supremacy in the region. Still, only a decade ago, Kenya's national carrier was on its knees because of huge debts, a bloated workforce and inefficiency. Today, the airline is one of the most profitable in Africa. Last year, for the fifth time in seven years, it scooped Africa's airline awards, beating other heavyweights such as Ethiopian, Egypt Air and South Africa Airlines. Towards the end of last year, the airline was voted the Most Promising African Airline by Aviation and Allied Business Update, the premier aviation industry journal of Nigeria. The award was given because of the airlines's consistency in growth. It was termed the fastest growing airline on the continent and a success story of privatisation. Assets highlighted included its modern fleet, impressive financial performance, route network, staff training and information technology. KQ carried 2.4 million passengers in 2005, a 17 per cent increase on 2004. The strongest growth was registered on African routes, with West and Central Africa leading with 26 per cent, followed by Southern Africa, North Africa and East Africa at 22 per cent, 21 per cent and 5 per cent respectively.