Jetlink navigates murky skies to stay profitable

By Kenneth Kwama

In an industry known for stiff competition, market volatility and demanding customers, the country’s second-largest airliner by jet size fleet, Jetlink Express, seems to have found a formula to smoothen the ride.

The company’s focus on business travellers, targeted expansion of fleet and strict adherence to time schedules has guaranteed phenomenal growth, which saw it defy the recent global recession to increase its turnover by more than 100 per cent last year.

Jetlink banks on business travellers to drive up customer numbers. Photo: File/Standard/Standard

“We have a large fleet that comprises up to nine modern jets. This means that we can do several flights in a day. We mainly target business travellers and this has turned out well for us because we’ve managed to cultivate a very loyal clientele base,” says Captain Elly Aluvale, managing director, Jetlink Express.

The increased customer traffic, which is in line with the ongoing global economic recovery, has raised expectations that the airline will report improved profits this financial year.

Its main competitor for the domestic market, Kenya Airways (KQ) has announced that its profit in the first half of this financial year had surged 63 per cent compared to the same period last year due to good sales--a positive indicator of trend in the industry.

Unlike other forms of travel like tourist and leisure travel, business travel, which Jetlink is relying on to drive up its customer numbers, is somehow requisite because they are either pre-arranged or a must.

“It is always there. There is no high or low season for business travellers. They are always there,” says Aluvale.

With its eyes firmly fixed on this niche, Jetlink says it will always strive to bring flights in on time and ensure timely departures in order to fit with the demands of its market niche.

“We told our employees it was one of the most important things to ensure. It worked well and today our on-time is at 96 per cent. I believe this is the best in the industry,” says Aluvale. The company has signalled its intention to tighten the grip in this market further by increasing its fleet through acquisition of a new jet, which it says will be delivered soon.

The delivery will help it service newer routes it hopes to open up in the coming months and keep to a tradition of maintaining a favourable load factor-the measure of an airline’s passenger carrying capacity is used the past two years.

In a business where every minute counts, the strategy seems to have paid off with the airliner, which was ranked among top 100 mid-sized companies in the country in 2008 growing more than doubling its revenue.

“In 2008, our turnover was at around Sh1 billion, but we closed last year (2009) with a turnover of about Sh2.5 billion,” says the managing director.

This is the period airlines went through a desperately bad time, suffering high fuel prices and then a collapse in demand, particularly in the international long-haul market.

The company however admits that recent huge increases in fuel prices have been a challenge, but says it will always do its best to navigate the problem in order to keep its fares affordable to its customers.

Worried company

With its rivals such as Kenya Airways and Fly 540 constantly reviewing their fares to keep the battle for customers alive, Jetlink should be a worried company, but Aluvale is confident Jetlink’s employees and its fleet of new jets will be up to the task.

“We are in very good shape. This business is all about the tight balance between capacity and demand and we have every confidence that we have everything right. From the day we started, our flights were based on affordable fares, and our strategy was to make air travel affordable. We will continue on the same path,” he says.

Currently, Jetlink flies six times to Mombasa. It also flies daily to Eldoret and Kisumu and will on November 15 launch direct flights to Mwanza, Tanzania. This will be its third international destination after Juba and Khartoum where it also flies scheduled flights.

The company has also applied to the Eritrean Government to be granted air traffic rights, which will enable it to operate direct flights to the country’s capital, Asmara and is hopeful of a positive outcome.

“We want to expand to other international destinations unfortunately this has been slowed by slow licensing procedures. We hope the coming into effect of the East African Customs Union will help expedite the process within the block and fasten some of these processes.

“There is a lot of competition in the industry right now, but we welcome this because it is good for us and for the customers. Our aim is to be the most efficient airline with a well motivated workforce,” says Aluvale.