The domestic aviation industry has come under sharp scrutiny following the rapid increase in consumer complaints, largely as a result of delayed refunds from the cancellation of flights.
According to a new Competition Authority of Kenya (CA) report covering the year to June 2023, the aviation sector recorded the highest increase in the number of consumer complaints.
The regulator documented cases of airlines refusing to process refunds after cancelling and rescheduling flights to local destinations while some clients were denied boarding on planes flying to foreign countries.
Complaints against the aviation industry totaled to 97 in the fiscal year to June or 18.6 percent of consumer complaints handled by the competition watchdog in the period.
This ranked aviation fourth among industries with the highest consumer violation cases after manufacturing, financial services, wholesale and retail trade.
Fly 540, Kenya Airways, East African Air Express Limited, Jambo Jet, Phoenix Safari Limited, Skyward Express, Safari Air Express Limited and East African Airways were among the local carriers cited in the consumer violation cases.
Meanwhile, Qatar Airways and Ethiopian Airways were outliers being the only foreign domiciled airlines to register consumer complaints, largely covering denial or boarding.
Fly 540 registered the highest complaints making up more than half of all probed consumer violations in the aviation sector, an outcome largely attributable to woes that have befallen the carrier over the last two years.
In November 2022 for instance, CAK raised the alarm over increased travellers’ complaints against the airline which was ordered by the regulator to halt its operations indefinitely after more than 50 complaints from its clients were received.
Ms Li Fung brought a complaint to the CAK alleging that the carrier cancelled two passenger flights scheduled for August 29, 2022 from Nairobi to Malindi, and a second on October 20, 2022 from Nairobi to Lamu.
“After requesting for a full refund, the complainant was refunded the one ticket amount of Sh62,285. The case was closed,” CAK noted.
Similar complaints filed against the same carrier remain pending including a complaint by Mohamed Varwani who purchased a ticket from Mombasa to Nairobi, after which the flight was cancelled and the complainant did not get refunded the cost of the ticket.
The case was consolidated with other Fly 540 Limited ongoing cases.
The airline has recently fallen into hard times and has been the subject of investigations over a Sh2.5 billion debt for 19 leased aircraft whose ownership has been contested.
For the case of national carrier Kenya Airways, consumer complaints have related to the delayed ticket refunds and denied boarding.
Mr James Shikuku for instance told the CAK that he was denied boarding by KQ on his flight to Lubumbashi, Congo.
“The complainant was issued with a refund voucher by Kenya Airways and the case concluded,” CAK notes.
During the review period, the competition watchdog investigated 521 consumer violation cases, a jump of 30 percent from 401 cases in the 2021/22 financial year with the increase mirroring the rise in awareness by consumers of their rights.
Nine out of every 10 complaints addressed by CAK were in relation to false or misleading representations and unconscionable conduct.
Complaints in the financial services sector were mainly against non-deposit-taking microfinance institutions. The watchdog also marked an increase in complaints relating to scams and fraud, mainly in e-commerce and trade which were criminal in nature and were referred to the Directorate of Criminal Investigations (DCI).
CAK’s probe on consumer cases yielded Sh19.6 million in savings, a 184 percent increase from Sh6.9 million previously.
The watchdog meanwhile netted Sh15.7 million from fines, penalties and the issuance of declaratory orders, an increase from Sh12.8 million in the prior financial year.
