I highlighted the fact that most airline startups in East Africa have collapsed. The low internet penetration in Kenya & Uganda as well as fraud & low credit card use makes web bookings difficult for customers/passengers.
The 'collapse' of VIA leaves KQ as the dominant - if not, only carrier - between NBO-EBB. KQ's strengths are:
- Extensive network. It is estimated that 80% of NBO-EBB flights are connecting not point-to-point flights.
- Extensive but expensive distribution system including Travel Agents, Web & Sales Offices.
- Financial strength
Kenya has its Fly 54o which has lucked out since fuel prices have fallen as well as increased tourism on the NBO-MBA route. They have also added KSM but they will face increased competition from KQ's new Embraer Jets coming in mid-2007.