Questions linger as Kenya Airways resumes International Passenger Flights

Kenya Airways got a COVID-19 reprieve on Saturday, resuming international passenger flights as boarders and air space slowly re-open – despite fears that pandemic is yet to peak in Africa and may resurge in other parts of the world.

The national carrier announced resumption of global flights to 30 destinations across Africa, Europe, and the Middle East following the easing of movement restrictions by President Uhuru Kenyatta – with the first flights departing to London, Dubai, Addis Ababa, Kigali and Lusaka.

Despite the bold move by KQ –as it is known by its codeshare name, experts and frequent flyers say the overall air transport landscape is still grim.

“I have to give them credit for really doing all they could under the circumstances but the overall air transport is still not entirely safe,” says Bruce Rabinowitz, a frequent air traveler presently based in New York, United States – and often uses the suspended nonstop flight.

The airline, however, announced it will start operations to the USA, China and Thailand from October with those routes requiring the bulk of the network to open up if it is to sustain adequate traffic on those destinations.

Industry observers further believe that the aviation sector will recover within two to three years before air travel returns to the 2019 levels from the global economic downturn as growth in the markets like the US and Asia offsets weaker demand in Europe.

“The global economic and geopolitical context remains uncertain and it will take another 2-3 years to gain the confidence of travellers and begin the path to recovery for air travel demand,” said KQ Chairman Michael Joseph.

According to International Air Transport Association (IATA) May statistics, worldwide airline shares lost 15 percent, erasing gains for 2020 projections, but are still 50 percent above their low point in early 2009.

IATA Chief executive Giovanni Bisignani further predicts passenger revenues will decline by over $6 billion compared to the previous year. Revenue losses for global airlines are estimated to be around US$252billion as of May this year.

“Since resuming domestic flights on 15th July 2020, we have been monitoring the adherence to the protocols that we have in place to ensure the health and safety of our customers and staff, and I am pleased that they are being enforced and followed strictly,” said Allan Kilavuka, the Chief executive of Kenya Airways while flagging off the first international passenger flight.

The coronavirus pandemic has also had a devastating impact on the tourism and aviation industries, globally. Kenya’s tourism industry for instance lost Sh80 billion in revenue due to the crisis.

EAC Partner States will potentially lose upwards of US$5.4 billion of tourist local spending for the year 2020 under scenarios of protracted closures and restrictions of seaports and airports. The impact of COVID-19 has led to a decline in the number of air passengers US$0.54 billion revenue loss was projected in Kenya and affecting over137, 965 jobs.

Rwanda also resumed its international flights on Saturday while Tanzania resumed their own on May 18.

Also standing in the way of Kenya Airways’ take off on regional skies include the ongoing spat between Kenya and Tanzania, after the latter banned KQ from flying into its skies.

The Tanzanian Civil Aviation Authority (TCAA) said Kenya Airways flights were being banned “on a reciprocal basis” after the Kenyan government decided against including Tanzania in a list of countries whose passengers would be allowed to enter Kenya when commercial flights resumed on Saturday following the lifting of coronavirus restrictions.

In a letter to the airline, the Tanzanian government decided to nullify its approval for Kenya Airways (KQ) flights between Nairobi and Dar/Kilimanjaro/Zanzibar effective August 1, 2020 until further notice.

The existing tension between the two countries, East African Business Council (EABC) says will affect regional air transport services.

“The differences emerging in regional air transport services among some partner states are set to adversely affect the rebound of business in the region,” said Peter Mathuki, EABC chief executive in a statement yesterday.

Other factors also include the pending legal push and pull between the airline and its staff through Kenya Aviation Workers Union (KAWU).

High Court in June suspended plans by Kenya Airways to lay off some of its staff and send others on unpaid leave – a move that KQ defied and proceeded to retrench 650 employees arguing that the decision was within the limits of law and in compliance with orders issued by the Employment and Labour Relations Court earlier in July.

KQ performance has also been under the microscope. The airline reported a gross loss of Sh12.98 billion, a 71 per cent further drop compared to Sh7.55 billion loss the previous year, attributing it to an increase in operating costs that grew by 12.4 per cent to Sh129.1 billion compared to Sh114.8 billion in 2018. It projects to lose between Sh42.4 billion and Sh53 billion by the end of the year if the coronavirus pandemic persists.