Low-cost carrier Jambojet last month reported net profits of Sh57 million for the first six months of its financial year. The results that covered April to September 2015 were welcome news for shareholders, who absorbed a Sh237 million loss over a similar period last year.
Jambojet, which operates a Boeing 737 and leased Bombardier planes between major Kenyan cities, was started by national carrier Kenya Airways last year.
The budget airline reported a 14 per cent increase in passenger numbers in its latest financials, with planes flying 75 per cent full, up from 60 per cent. Now, Jambojet — which says it controls 35 per cent of the country’s budget airline industry — has launched a campaign to further improve its numbers.
We spoke to the airline’s CEO, Willem Hondius, on what opportunities the firm plans to exploit, and how it hopes to get more Kenyans into the skies.
Your financial year has started well after last year’s losses. The turnaround must be welcome.
As stated in the KQ annual report ended 2015 March, Jambojet had a turnover of Sh2.6 billion. As subsidiary of KQ, we can’t talk about current figures, but last year we had start-up losses and this year we are doing well. We also expect to carry more passengers than we did last year.
How much market share would you say Jambojet has grabbed from formal bus companies?
That is difficult to say. Research showed that about 35 per cent of our passengers were first-time flyers. We carried about 500,000 passengers last year. Theoretically, that would mean that we got 175,000 passengers who travelled by other means before, or did not travel at all.
Is the current campaign you’re running to get more people to fly an attempt to make up for failing to hit your target for annual passenger traffic last year?
This campaign has nothing to do with last year’s numbers as such. We try to stimulate people to travel by plane as it is faster, more convenient and safer. We want to grow the market, and that means that we need to attract new passengers. That is what the campaign is about.
How many domestic routes are you eyeing in the next phase of your growth plan?
There are still a number of domestic routes we would like to fly to. This, however, depends on the development of the domestic airports. In certain cases, the infrastructure, such as runways and passenger facilities, does not allow us yet to operate to all the areas we’re eyeing.
At a certain stage, we will also operate in the region. We will announce these developments when the time comes.
Can passengers expect a reduction in Jambojet ticket prices?
Our fares are already very competitive. We offer the lowest fares in the market, and the earlier you book, the cheaper you fly.
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How do you intend to address passenger delays, especially on the Nairobi-North Rift route by passing through Kisumu?
As happens with any airline, we face delays once in a while. In general, our on-time performance is high. On average, 85 per cent of our flights depart on time, which is high compared to the industry average.
Do you have any updates to share on Jambojet’s planned leasing of planes and pilots’ fears of job losses?
We operate two B737-300 and two Bombardier Q400. The more aircraft we operate, the more jobs we create for pilots and other staff.
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