Blog Archive

Monday, April 21, 2008

KQ's fortunes looking up...

North America is Kenya's 3rd largest tourist market. If Kenya can get an Open Skies agreement with the USA (& Canada) it will reduce KQ's costs & increase passenger numbers by bypassing European hubs.

Furthermore, Delta which plans flight from USA to Kenya via West Africa is a member of SkyTeam, and can add code-share passengers to KQ's regional flights while allowing KQ to sell additional seats/destinations on Delta flights. Then, KQ can compete with SAA for passengers from southern Africa traveling to N.America.

Whereas high fuel prices hurt KQ, its larger/stronger financial base can make KQ - if well managed - a long-term winner as many marginal African airlines are expected to collapse during 2008.

Of course, all is not rosy but KQ should not let up on investing in new efficient planes, better facilities & staff training.


bankelele said...

Polse, they just had to have a plane incident today

coldtusker said...

Seems minor but still not a good thing!