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Government and Policy

Irony As GoK Contracts Ethiopian Airlines Instead Of Kenya Airways

BY Soko Directory Team · April 14, 2020 09:04 am

Kenya Airways feels like an abandoned child as the government picked Ethiopian Airlines to ship cargo out of the country.

The new deal between the Kenyan Government and Ethiopian Airlines will see a shipment of cargo from Jomo Kenyatta International Airport Nairobi to various parts of the world including Europe and Asia.

Ethiopian Airlines is expected to ship fresh vegetables, fruits, flowers and meat which are currently scarce in Europe due to Coronavirus that has affected the movement of goods and even people.

However, KQ which is the national carrier has protested the move by Kenya saying it would give Ethiopian Airlines undue advantage at a time when all airlines are making losses over Coronavirus pandemic.

KQ said that the Kenyan Government through the ministry of transport gave Ethiopian Airlines the chance to vary its license for six-passenger planes and thus the planes were allowed to ship goods to foreign countries.

KQ revealed that such a service is charged a premium by all Airlines since the business has been hugely affected by the Covid-19 pandemic.

KQ’s chief executive Allan Kilavuka said the national carrier was not consulted about the deal and the impact it would have on its revenue.

“We have objected the move to have Ethiopian Airlines use their passenger flights for cargo business in Kenya because we were not consulted on the impact that this would have on our business,” said KQ CEO.

The KQ argued that since it is the national carrier it should be consulted when the Government decides to contract another airline especially a foreign one.

“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,” Mr. Kilavuka added.

KQ is said to earn up to 11 billion shillings in revenue from cargo business. The earnings are used to pay salaries and dues including utility bills like water and electricity.

The Covid-19 pandemic, however, has affected the national carrier which was caught unaware without any cash reserves.

Since the government banned the movement in and out of the country, and also move between major cities like Nairobi and Mombasa, KQ was left to depend solely on cargo shipment.

READ: Kenya Airways Receives Ksh 5 Billion Commercial Loan From Government 

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