Corporate News
Jambojet last year reported a net profit of Sh57 million for the first six months ending September. PHOTO | FILE
By DOREEN WAINAINAH
Kenya Airways
has signed a codeshare agreement with its low cost subsidiary Jambojet
for local routes in a bid to strengthen its share of the local market.
The national carrier announced Monday that it would put the
‘KQ’ designator code on the Jambojet flights to Malindi, Lamu, Ukunda
(Diani) and Eldoret, allowing Kenya Airways to sell the Jambojet network
to passengers coming from across the world. The deal will free the
national carrier to focus its domestic operations on Mombasa and Kisumu.
“Without a doubt the agreement will contribute to
our growth as a low-cost carrier and with the increased number of
flights, we will further improve our service offering to our customers
travelling to the South,” said Jambojet CEO Willem Hondius.
In a notice by Kenya Airways to its country
managers and sales offices, the carrier had last week temporarily
suspended sales for flights to Malindi ahead of public announcement of
the deal.
“To allow the transition, additional sales on KQ
flights is temporarily on hold,” read the notice. Booking to Malindi are
to be done via the Jambojet website or offices.
“The sales which resumed Monday will allow
international customers flying the carrier to access the codeshare
routes on KQ via Nairobi.
“Point to point sales will only be processed by the
operating carrier Jambojet. The process of client allocation onto
Jambojet flights has started and will be processed centrally from
KQ-contact centre.”
The move comes at a time when the low cost carrier
was confined to local routes only after Kenya Civil Avaition Authority
failed to issue it a licence to operate international scheduled flights
in the region.
According to Kenya Airports Authority, there has
been growth in the number of local passengers which has been attributed
to the high demand of flight services in Eldoret, Kisumu and Nairobi.
This growth has been spurred by the introduction of budget airline
Jambojet.
Jambojet last year reported a net profit of Sh57
million for the first six months ending September, compared to a loss of
Sh237 million during the same period in 2014.
However, Kenya Airways has been in a financial landmine, posting a Sh26.2 billion loss for the year ended March.
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