Chinese airline’s entry deals blow to Kenya Airways
From left: China Southern Airlines deputy managing director Quan Si Bin, senior vice-president sales division Li Dongliang and general manager Li Xiang unveil plans for the new route from Guangzhou to Nairobi at a media briefing in Nairobi. PHOTO | FILE
What you need to know:
China Southern Airlines will start flying from Nairobi to Guangzhou from early August three times a week.
It plans to introduce daily flights from Nairobi depending on the level of demand.
Kenya Airways has emerged as a big loser with the launch of China Southern Airlines’ direct flights from Nairobi to Guangzhou.
The national carrier had a code sharing agreement with China Southern Airlines, which allowed it to fly passengers to Guangzhou after which it would transfer them to the Chinese airline for domestic connections.
The launch of China Southern Airlines flights to Nairobi, however, means that the national carrier will lose out on passenger referrals that it was getting as travellers who wish to connect to other Chinese cities from Guangzhou will now prefer to use the Asian carrier.
“We have for long wanted to fly our planes to the Kenyan market but regulatory issues have been a problem and we expect the new move will boost our growth,” said Li Dongliang, the Chinese airline’s Vice-President in charge of the Sales Division.
The China-based airline would previously make bookings for its local travellers through its Nairobi representatives and transfer the passengers to Kenya Airways and share the revenue generated.
On Tuesday, the airline said it decided to enter the Kenyan market to tap the increased demand for its services mainly from the business communities from the two countries who are frequent travellers.
“The Nairobi to Guangzhou route is a prime market given its business atmosphere and the number of business people and students crossing over the two countries,” said Li Dongliang.
He spoke during the pre-launch media briefing in Nairobi on Tuesday.
The airline will start flying from Nairobi to Guangzhou from early August three times a week. It plans to introduce daily flights from Nairobi depending on the level of demand.
Apart from the code share agreement Kenya Airways has been enjoying, the new entrant poses a commercial threat to the national carrier which introduced direct flights to Guangzhou in 2013.
“We are not in direct competition with Kenya Airways but we will be holding a discussion (with Kenya Airways),” said Li Xiang, the China Southern Airlines General Manager for the East Africa market.
China Southern Airlines will operate Monday, Wednesday and Friday flights between the two cities where it will be using an Airbus A330-200 aircraft that has the capacity to carry 300 passengers.
Last year, Kenya signed a memorandum of understanding with China on cooperation to boost tourism between the two countries.
The Chinese airline also said that apart from the direct flights between Nairobi and Guangzhou it will also be connecting local travellers to domestic flights it operates to the neighbouring cities within China.
Kenya Airways has been expanding to the Far East and Middle East driven by demand by business grovellers.
In January this year, KQ opened a sales and ticketing outlet in Tea Room area in the central Business District targeting thousands of small traders who buy their goods in the Middle East and Asia.
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