It’s all systems go as KQ gears for direct flights to America

Kenya Airways Chief Executive Sebastian Mikosz (right), his Air Madagascar counterpart Rolland Besoa Razafimaharo (centre) and Air Austral Secretary-General Dominique Dufour during the signing of a codeshare Memorandum of Understanding by the three airlines in Antananarivo, Madagascar last week. [Courtesy]

Kenya Airways boss Sebastian Mikosz is a man on edge, and understandably so.

In just two months, Kenya Airways will make the long-anticipated and groundbreaking inaugural 14-hour non-stop flight to New York.

For many regional travellers, this is great news, but for the KQ chief executive, it portends a mixed bag of fortunes.

For Mr Mikosz, the inaugural flight is a high-stakes make-or-break moment — one of the biggest tests the airline has ever faced in its 41-year history.

He admits that while he is enthusiastic about the endeavour, he feels under immense pressure to ensure the new route flourishes.

“The Nairobi to New York flight is the biggest project we are running right now,” Mikosz told The Standard last week when the national carrier signed a crucial codeshare memorandum of understanding with Air Madagascar and Air Austral in Antananarivo, Madagascar.

To demonstrate the seriousness with which the airline is taking the new route, he said the airline would not undertake any new major projects for the remainder of this year.

One of the biggest worries is whether the twice-daily flight between Nairobi and New York will have enough numbers to make it sustainable in the long run.

In June, the airline admitted that the initial ticket sales for the inaugural flight had been considerably low.

The airline is also wary of a surge in competition from other carriers, which have lately threatened its position as ‘the pride of Africa’.

Just this month, Uganda ordered two Airbus planes while Air Tanzania added new routes and Nigeria began the process of launching a new national airline, Nigeria Air.

Ethiopian Airlines now rules the roost in the African airspace while Rwandair continues to expand its network, albeit gradually, with its latest destination being Guangzhou, China.

Over the past few months, Kenya Airways has been restrategising and reinventing, finding ways to make the New York route work efficiently. This comes after the massive financial restructuring undertaken by the airline in 2017.       

One of the strategies the airline has taken to ensure the flights have adequate passengers is forming partnerships with other airlines. Just recently, the airline entered a codeshare partnership with Air Mauritius.

Last week, Kenya Airways signed a crucial codeshare with Air Madagascar and Air Austral.

“We are checking what is important for our customers and looking for ways to boost our revenue,” said Mikosz.

“Synergy among airlines is important because this industry is extremely difficult.”

He believes that the partnerships with Air Madagascar and Air Mauritius are essential in helping Kenya Airways strengthen its position in Africa. Air Austral is additionally crucial as the partnership will help KQ earn more revenue by selling more tickets in East Africa, West Africa and the Vanilla Island routes.

Best airport

Under the new arrangements, Air Mauritius, Air Madagascar and Air Austral will sell Kenya Airways tickets, including those for the New York flight. This way, Kenya Airways will not only be able to reduce its risk and sell more seats on its flights (including the ones to and from New York), but also help many Africans to travel more conveniently. The Kenya Airways flight to New York is by far the shortest, not just for travellers to and from Kenya, but also for those from other East African countries and the Vanilla Islands.

Kenya Airways is at an advantage as its Jomo Kenyatta International Airport (JKIA) hub is ranked among the top five African destinations for air carriers and was recently named the best African airport by Airhelp.

Additionally, given Nairobi’s position as a successful commercial hub, there is a high probability that many of the visitors travelling to and from East Africa and the US will prefer to use Kenya Airways.

While Mikosz acknowledges that KQ’s tickets for the New York route are slightly more expensive than those of other airlines, he notes that its efficiency is unparalleled and as a result, customers will get value for their money.

The second biggest concern springs from the tough competition on the route.

“This is going to be the most difficult market. It has the biggest competitors. Currently, 23 operators fly from Nairobi to New York, although through other destinations,” said Mikosz.

“We are still imperfect in many places. I do not believe Kenya Airways can succeed if it does not grow.”

Part of this, Mikosz notes, is growing the airline’s fleet by at least 60 per cent, which explains the airline’s decision to recall the planes it had leased to other airlines.

He further believes that reinventing is necessary as Kenya Airways will not hold a monopoly over New York for long.

“I am sure that in two to three years other East African nations will likely be flying directly to New York.”