From May 2, Fly540 will be flying to Juba six times a week. Photo/FILE
Regional carrier Fly540 will fly from Nairobi to Juba starting next month in a move promising to shift the price war on the domestic routes.
The airline said it is starting the service on May 2 with six flights per week at a return ticket of $400 — signalling intention to wage a price war as its rates are slightly lower than those of national carrier Kenya Airways.
Demand for air travel in the region is being driven by financial service providers, industrialists and workers scrambling for a piece the virgin Southern Sudan market.
This traffic has sparked a scramble among airlines on the Nairobi-Juba route.
“We should start on the route with $199 for a one-way ticket and double the amount for a return. We expect to start with between 40 and 50 per cent capacity,” said Mr Nixon Ooko, the Fly540 operations director.
The move comes after it formed a partnership with rival East African Safari Air Express—giving it access to planes and staff.
“Entrepreneurs and investors are turning to the Southern Sudan and there are growing trade links with Kenya which are driving demand for more flights between Nairobi and Juba,” said Mr Ooko.
Kenyan businesses including KCB, Equity Bank, UAP, Thuraya, Civicon and East African Portland Cement have set up shop in Juba to tap into the 12 million population market.
Data from airlines indicate that passenger traffic between Nairobi and Juba has grown to more than 8,000 from a monthly average of 5,800 passengers.
The entry of Fly540 on the route mainly served by Kenya Airways since June last year and Jetlink is expected to increase pressure on the route that could result into a price war as happened on the Tanzanian routes.
The route has one of the highest margin as return ticket costs more than Sh40,000 ($500), which is higher than Entebbe (about Sh22,400 or $280) and Dar es Salaam (Sh33,600 or $420).
Fly540 plans to introduce daily flights on the route using its 50 seater twin jet.
“Although we are launching this route with six services each week, we anticipate a daily schedule in the near future.”
This comes at a time airlines are grappling with rising jet fuel amid cut-throat competition on the domestic market that has seen them cut fares to defend market share.
Unlike KQ the other players are mainly point-to-point carriers, giving the national airline the advantage of connecting passengers from other destinations through Nairobi.
This has made it crucial for smaller airlines to seek fresh routes in the region to increase sales.
Fly540 recently introduced flights to Vipingo and is serving the Mara, Nanyuki, Meru and Samburu.
Kenya and South Sudan have an agreement on technical, economic and cultural co-operation since 2006 that has seen Nairobi contribute to reconstruction of Juba.
