Page 72 - World Airnews Magazine January 2020 Edition

OPINION

WHAT NEW NATIONAL CARRIERS

MEAN FOR KENYA AIRWAYS

By Mwangi Ngamate

propelled as the only solution to achieve became a new regional operator based at
brand loyalty. However, the intrigues N’Djamena Airport in Chad. This Company
It is currently not possible for a single behind this are even more eye catching. is backed by ET. 51 percent of Tchadia is
controlled by the Chad Government, while
airline to serve the whole continent. That In 2018, Ethiopian Airlines (ET) the remaining 49 percent is owned by the
is what Abderahmane Berthe, Secretary announced it bought a 45 percent stake Star Alliance to which ET is a member.
General of the African Airlines Association to revive Zambia Airways, which went From a brand loyalty perspective, ET
into liquidation in 1994. ET has also been
(AFRAA), believes. in talks with other African governments is applying a semi horizontal business
But if Delta were an African Airline, it including Ghana to re-launch their national strategy of forging alliances, partnerships
would be starved of passengers since Africa carriers. and acquisitions all while appearing to
accounts for just 100 million passengers In 2017, Ethiopia was in negotiations to stay away from the brand identity of its
yearLY, according to International Air manage Nigeria’s biggest private airline associates. The idea is to take as much of
Transport Association (IATA). Arik Air which failed, but the company the 100 million within Africa every year, a
Delta serves nearly 200 million people has reportedly expressed interest in creative destruction strategy.
every year taking customers to more than two other initiatives in Africa’s largest The effect of this is that our national
300 destinations in over 50 countries. market. Ethiopian Airlines already operates carrier, Kenya Airways, loses its market
According to Michael Porter’s five Malawian Airlines through a deal signed in share because local travellers will shift
competitive forces that shape strategy, 2013, and partners with privately-owned to their respective national carriers most
airline industry is the least profitable sector ASKY Airlines through a hub in Lomé, Togo. of whom are in partnership deals with
known to man. Mr Porter notes that the Privately held Guinea Airlines which Ethiopian Airlines. Other regional countries
nature of rivalry in airlines is so intense is named after the formerly national have put in efforts to muddy the waters of
that it largely relies on price, hence the carrier is now operating under a strategic the industry.
introduction of other innuendoes like the partnership between Ethiopian Airlines, Uganda Airlines has set out to eat into the
cabin crew’s attractiveness. ASKY and Guinea Airlines. The Ethiopian Kenya Airways market share in the region
Despite possessing just 100 million air carrier commenced services from Conakry flying the same routes as KQ. Mozambique
passengers, almost every African country to destinations in Mali, Burkina Faso and is a unique case because it comes after the
appears to be establishing their national Guinea, operated by ASKY. ban on their airline by the European Union
carriers, but for what purpose if airline The strategic relationship does not end was lifted. With its expansion, another
business is the least profitable? with Guinea alone, it also extends to Gold chunk of KQ’s market share taken away.
Every airline has to come up with a Coast. In May this year, the Ghanaian The government of Kenya should
strategy that will fly its colours high Government finalised a strategic partner- fast-track nationalisation of the airline and
above the rest. This brings about the ever ship agreement with Ethiopian Airlines over leverage its extensive bilateral networks to
powerful brand loyalty concept which the formation of a new national carrier protect market share. Q
advances that a loyal consumer would following a memorandum of understanding *Ngamate is a former business lecturer
consume a brand for a longer period of that was signed between the two sides in at the International College of the Cayman
time despite availability of other options. December 2018. Islands. Email: mwangingamate@gmail.
In Africa, nationalisation of airlines is being In October 2018, Tchadia Airlines com

World Airnews | January Extra 2020
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