Kenya Airways is among three airlines hunting for new markets to cushion themselves from the effects of the economic slowdown as others go for spending cutbacks in the face of shrinking passenger numbers and rising costs of operation. The national carrier, together with Emirates, Qatar Airways and Etihad, is expanding into new route networks hoping for a stronger market presence in an industry that has been hit by high oil prices and the onset of the global credit and financial crisis.

Kenya Airways, which only last month opened offices in Botswana and is eyeing Kisangani in the Democratic Republic of Congo and Brazaville, will soon be flying to Namibia and Botswana. “We are determined to expand our network despite the ongoing issues,” Mr Evanson Mwaniki, the chairman of the airline, which in January issued a profit warning, told tour operators from Africa recently. Dubai-based Emirates Airline is also looking at expansion in the African market and has announced plans for two new routes — to Luanda beginning in August and Durban from October.

It is looking at tapping into the oil and mineral-rich business that is driving Angola’s economy and has identified the country as a major growth point for its cargo by providing over 12 tonnes of belly space. “In the past year we have seen strong growth in Africa and now with the new routes we expect a lot more,” the airline’s president, Mr Tim Clark, said in a statement, noting that they had had a 17 per cent growth in the region and expected it to continue this year.

Doha-based airline, Qatar Airways, has its sights on Australia, India, Europe and the US  and has announced a new service to Houston by the end of this month in addition to increasing frequencies to some of its existing routes. Chief executive Akbar Al Baker says they are continually looking for new opportunities around the world and are ready to shift capacity according to market conditions.

“The airline’s robust expansion is continuing undeterred by the current economic climate,” he said in a recent statement announcing the new routes. Abu Dhabi-based carrier Etihad has on the other hand, signed an interline cargo agreement with local airline Astral as it expands its cargo business in various regions.

The expansion strategies of these Middle East carriers has seen them become major clients to aircraft manufacturers due to their large orders to facilitate their plans.
Etihad, which was only launched in 2003, has ordered for 100 Airbus and Boeing aircraft, while Emirates is on course to being the world’s largest Airbus A380 operator with 58 orders.

Qatar is expected to expand its fleet to 110 planes by 2013, up from 68. The expansion plans by these airlines is setting up new global hubs in the Middle East to rival the traditional ones in Europe mainly Heathrow, Schiphol, Charles de Gaulle and Frankfurt.
The expansion by these airlines is part of a long-term strategy to build a strong portfolio of routes and strengthen their hubs.

Though Africa is a small market in the aviation sector, it has shown resilience during this hard economic times having been the only region reporting growth in February according to International Air Transport Association’s (IATA) statistics. Africa grew by 2.8 per cent compared to all other markets, which reported reduced performance with the pacific market recording the highest fall, 27 per cent. Total passenger numbers were down 9.6 per cent in February and the downward trend is expected to continue for the rest of this year.

source: www.bdafrica.com