This archive report was first published on 26 November 2019.
On November 25, 2019, Jambojet made its inaugural flight to Kigali, Rwanda, the latest addition to its cross-border flights, which it aggressively pursued two years ago.
The airline's focus now shifts to how it will perform on this new venture, with analysts warning that rapid expansion can be a double-edged sword.
While the airline can reap significant benefits from the new routes, including increased passenger numbers and revenue, past experience has shown that quick expansion can go wrong if not well managed.
Kenya Airways, Jambojet's parent company, has faced challenges attributed to its rapid expansion, including the purchase of 10 Dreamliners under its Project Mawingu.
With stiff competition from Rwandair, which has daily flights to Nairobi from its base in Kigali, Jambojet has its work cut out to have a bigger share of the region's aviation market.
Economist Toni Watima believes that Jambojet's budget nature will give it an advantage in pricing, allowing it to compete effectively with larger airlines.
“Jambojet will not be competing with the big airlines such as Rwandair as their mode of pricing is different from these big ones,” said Mr Watima.
“Budget carriers can remain afloat by expanding to many routes and as long as Jambojet keeps their operating costs low, then they can compete well.”
The airline has also announced plans to launch daily flights to Mogadishu, Somalia, although this was put on hold to pave way for further negotiations with Somalia.
According to Jambojet's CEO, Allan Kilavuka, the airline's entry into the two markets is part of its regional expansion programme, bringing the total number of routes it operates in the continent to three, excluding those flown on behalf of Kenya Airways.
