The Kenya Civil Aviation Authority (KCAA) has denied Kenya Airways (KQ) an air service licence to fly to six new domestic routes.
The Authority rejected an application by the national carrier to fly JKIA-Wajir-JKIA, JKIA-Ukunda-JKIA, Kisumu-Homa Bay-Kisumu, JKIA-Lokichogio-JKIA, JKIA-Isiolo-JKIA, and Mombasa-Maasai Mara-Mombasa.
Had KCAA allowed the carrier on the routes, it would have heightened competition for smaller airlines such as 748 Air Services, Renegade Air, Safarilink Aviation, Skyward Express, and Freedom Air, which already ply some of the destinations.
If granted the license, this could mean more options for customers, which could lead to a drop in ticket prices.
As part of cost-cutting measures, KQ has reduced its fleet by two more planes. Latest data shows that the national carrier’s fleet size narrowed in the last nine months to 41 aircraft from 43 in December 31, 2021, after two leased Embraer 190 aircraft were surrendered following expiry of lease.
The airline has focused on restructuring its fleet, including selling aircraft and sub-leasing to other airlines in an attempt to return to profitability.
KQ narrowed its H1 2022 loss to KES 9.8 billion from a KES 11.5 billion loss posted in the same period last year, attributed to increased revenues.
The Group’s total revenue grew by 76% to KES48.1 billion from KES27.4 billion in the same period last year.
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