This archive report was first published on 6 May 2020.
On May 6, 2020, the Transport Ministry made a crucial decision that would impact the local cargo market. The ministry dismissed Kenya Airways' petition to overturn a government deal allowing Ethiopian Airlines to operate passenger planes grounded by the coronavirus for shipment of cargo from the Jomo Kenyatta International Airport (JKIA) in Nairobi to Europe and Asia.
Transport Secretary James Macharia termed the complaint by Kenya Airways as 'fundamentally misplaced.' This decision was made after the Ministry of Transport allowed Ethiopian Airlines to vary its licence for passenger planes and use six aircraft to ferry cargo from Nairobi and Mombasa to overseas on April 6.
Kenya Airways had expressed concerns that the deal would give Ethiopian Airlines an undue advantage in a period when Kenya has frozen international passenger travel due to the coronavirus outbreak, leaving cargo as the only revenue driver.
However, Transport Secretary Macharia argued that Kenya Airways cannot lift between 2,000 to 3,000 metric tonnes at its full capacity, which is significantly lower than the current capacity requirement of 3,500 to 4,500 metric tonnes.
Kenya Airways is banking on the cargo business, which generates about Sh11 billion annually, to pay salaries and utilities. The airline is also seeking a multibillion-shilling government bailout after the grounding of its planes.
