Kenya Airways to use existing fleet for new low cost carrier

Kenya Airways Chief Executive Officer Titus Naikuni (R) and group finance director, Alex Mbugua during the airline's annual general meeting at the Bomas of Kenya on September 26, 2013. Naikuni said airline is in the final stages of launching a low-cost subsidiary in the face of mounting regional competition. PHOTO/DIANA NGILA.   NATION

In Summary

• The airline’s group chief executive officer Titus Naikuni said they are in the final stages of launching the low-cost subsidiary in the face of mounting regional competition.
• Last year, the national carrier received a licence to run Jambo Jet in 22 routes in East Africa.
• The airline’s strongest competitors in the local market are Fly540 and Jetlink.

By Nation Correspondent
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National Carrier, Kenya Airways, will use existing fleet to launch a low-cost airline known as Jambo Jet, in the first quarter of 2014.

Addressing the media after the firm’s annual general meeting Thursday at the Bomas of Kenya, Nairobi, the airline’s group chief executive officer Titus Naikuni said they are in the final stages of launching the low-cost subsidiary in the face of mounting regional competition.

“There are a few things that we need to clear with the Kenya Civil Aviation Authority after which we will announce the exact date of the launch,” he said adding that the airline will use existing fleet before bringing in new ones.

On September 12, the airline appointed Mr Willem Hondius to the low-cost subsidiary, which was expected to be launched before end of last year.

“We aim to launch in the first quarter of 2014,” Mr Naikuni said.

Last year, the national carrier received a licence to run Jambo Jet in 22 routes in East Africa.

The airline will be flying to and from Wajir, Eldoret, Kisumu, Mombasa, Lamu and Malindi using a Boeing B737 aircraft.

It is also set to fly to South Sudan, the Democratic Republic of Congo, Comoros Island, Tanzania, Uganda, Ethiopia, Zanzibar, Pemba, Madagascar, Burundi, Rwanda and Somaliland.

Kenya Airways was to launch Jambo Jet before the end of last year.

The airline’s strongest competitors in the local market are Fly540 and Jetlink.

Jetlink was grounded at the end of 2012 due to a cash crunch in the South Sudan business.

This year, the airline announced a deal with FastJet, a European low coast carrier with the view to bring it back to the skies.

Already, a transaction in which FastJet was to gain control of Fly540 went bad this year after the latter’s managing director claimed that FastJet’s parent company was yet to fully pay him.

Other airlines that are operating in the region, posing a threat to JamboJet include Air Uganda and RwandAir.