This archive report was first published on 7 May 2020.
Published on May 7, 2020, Kenya Airways (KQ) has expressed concerns over a deal between the Kenya government and Ethiopian Airlines, citing fears of losing a significant portion of its cargo business.
The national carrier earns Sh. 10 billion annually from cargo operations, but its current capacity to lift cargo is limited to 1,500 metric tonnes, far below the required 3,500 to 4,500 metric tonnes.
According to CS Macharia, KQ's capacity is not sufficient to meet the demand, and the airline needs additional capacity to service sectors like fresh produce and flowers.
Kenya Airways CEO Allan Kilavuka also expressed concerns over the lack of consultation on the deal, stating that the airline was not informed about the potential impact on its business.
“Anytime you have a carrier wanting to come to your domain, you need to be consulted so that you are not disadvantaged at your main market,” Kilavuka said.
Kenya Airways is worried that Ethiopian Airlines will take a huge chunk of the business of shipping flowers, fresh fruits, vegetables, and meat, which have become increasingly scarce in Europe due to the coronavirus pandemic.
