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Auditor General Report Reveals $49M Fraud in Air Tanzania 767 Purchase

Air Tanzania
An Air Tanzania Airbus A320. (Photo: Air Tanzania, CC BY-SA 2.0 [https://creativecommons.org/licenses/by-sa/2.0])

Air Tanzania’s highly anticipated Boeing 767F has been found to have an inflated invoice of nearly $50 million. The last installment for the manufacture of the plane was supposed to be $37 million, but instead, an $86 million invoice was submitted for payment, according to the latest Controller and Auditor General (CAG) report.

The report, which was read by President Samia Suluhu Hassan, calls for the resignation of all individuals involved in the fraud. “Where did this invoice come from? What did the contract say? And when you received the invoice, you still presented it to the government for payment. Stupid, what step did you take after you received the invoice? When you look at it critically, you will notice that the price hike is something that started internally,” said the President this week.

The cargo plane, with registration number 5H-TCO, was spotted at the Boeing Everett factory in Washington, D.C. It is among four Boeing planes that were ordered by the Tanzanian government in 2021 at a reported total cost of $726 million, including a Boeing 787-8 Dreamliner and two Boeing 737 MAX jets.

Air Tanzania’s first dedicated cargo plane will be based at Kilimanjaro International Airport, which will become a strategic hub for cargo operations in Tanzania. The nation’s carrier has reported losses of 35.2 billion shillings ($150 million), and the arrival of the new cargo plane is expected to boost the airline’s fortunes.

However, this revelation has caused concern among stakeholders, who fear that the airline may not be able to recover from such a loss. The fraud also raises questions about the government’s procurement processes and the possibility of similar incidents occurring in other areas. In addition, Air Tanzania was one of 42 government entities that recorded losses meaning that the airline is among the corporations that cannot pay debts quickly.

The President’s call for the resignation of those involved in the fraudulent activity is a step in the right direction, as it shows a commitment to stamping out corruption and holding those responsible accountable for their actions. It is essential for the Tanzanian government to take swift action to address this issue and prevent similar occurrences in the future.

It remains to be seen what action the government will take to address the issue and whether those responsible for inflating the invoice will face any legal repercussions. In the meantime, the delivery of the new cargo plane is likely to be delayed, as the government looks to investigate the matter and ensure that such fraud does not happen again in the future.

Victor Shalton

Victor Shalton's love for aviation can be traced to when he was 11-years-old. As a seasoned aviation writer, he takes pride in providing the best aviation coverage around the globe and is passionate about advancing his skills in the aviation space. In addition, he loves travelling, writing, arts and while his speaking engagements have taken him around the world, he is proud to call Nairobi home.

EVA Air Brings Back Hello Kitty Jet Service

An EVA Air Boeing 777-300ER Hello Kitty Jet named "Shining Star" (Photo: EVA Air)

One of the world’s most playful passenger experiences has returned as EVA Air announced that its Hello Kitty Jet service recommenced on March 27, 2023. For over a decade, EVA Air has worked with Japanese company Sanrio to offer a unique concept, which features the iconic anthropomorphic cat and other characters from the company.

While the Taipei-based carrier’s Hello Kitty Jet service was suspended on April 1, 2020, due to the impacts of the COVID-19 pandemic, passengers are now once again able to take Hello Kitty-themed flights.

An Immersive Experience

EVA Air has multiple aircraft painted in colorful special liveries featuring Hello Kitty and other Sanrio characters. The first iteration of the Hello Kitty Jets was launched in 2005 but was discontinued in 2009. In 2011, the airline announced the return of Hello Kitty Jets, which has continued to this day.

Over the years, various Airbus A320-200, A330-200, Airbus A330-300 and Boeing 777-300ER aircraft have worn special Hello Kitty Jet liveries. Since aircraft are generally repainted every five to ten years, the airline has introduced over ten different liveries for its Hello Kitty Jets. Each aircraft is named based on its paint job, with the airline using names such as Shining Star, Hello Kitty Loves Apples and Celebration Flight.

An EVA Air Airbus A330-300 Hello Kitty Jet named “Hello Kitty Loves Apples” in 2015. This aircraft has since received a new Hello Kitty livery and is now named “Joyful Dream.” (Photo: AirlineGeeks | Andrew Chen)

The Hello Kitty theming extends far beyond the aircraft liveries. The presence of Hello Kitty is felt throughout the entire air travel experience. At check-in, passengers receive themed boarding passes and luggage tags. Upon boarding the aircraft, Hello Kitty finishings and amenities are immediately visible, with themed headrest covers, pillows and seatback screen content. In the seatback pocket, passengers will notice pink and white safety cards and airsickness bags. During the flight, EVA Air flight attendants don pink Hello Kitty aprons over their green uniforms to serve meals that include Hello Kitty cutlery ad other nods to the cat and her friends.

 

Five Aircraft and Three Routes

The Taiwanese airline currently has five aircraft painted in Hello Kitty liveries, down from seven before the pandemic. The current Hello Kitty Jets are:

  • Friendship Bows: An Airbus A321-200 registered as B-16207
  • Bad Badtz-Maru Travel Fun: An Airbus A330-300 registered as B-16331
  • Joyful Dream: An Airbus A330-300 registered as B-16332
  • Celebration Flight: An Airbus A330-300 registered as B-16333
  • Shining Star: A Boeing 777-300ER registered as B-16722

Prior to the service’s pandemic suspension, Hello Kitty Jet service was offered on numerous routes, including flights between Taipei and Singapore, Seoul and various Japanese destinations. In the past, the themed experience was also available on flights to long-haul destinations such as Paris, Houston and Los Angeles. However, Hello Kitty Jets service is now only available on three routes:

  • Flights BR115 and BR116 between Taoyuan International Airport (Taipei, Taiwan) and New Chitose Airport (Sapporo, Japan) are operating daily by either Joyful Dream or Celebration Flight.
  • Flights BR255 and BR256 between Taoyuan International Airport (Taipei, Taiwan) and Denpasar International Airport (Bali, Indonesia) are operated daily by either Joyful Dream or Celebration Flight.
  • Flights BR55 and BR56 between Taoyuan International Airport (Taipei, Taiwan) and Chicago O’Hare International Airport are operated three times a week by Shining Star.
EVA Air Airbus A330-300 Hello Kitty Jet Economy Class seats (Photo: AirlineGeeks | Andrew Chen)

When there are equipment changes on designated Hello Kitty Jet routes, the onboard themed service is generally still offered even if the aircraft flying that day does not have a Hello Kitty livery. Similarly, when Hello Kitty aircraft operate non-Hello Kitty Jet routes, the flights have regular EVA Air onboard service and amenities. This is currently the case with Friendship Bows and Bad Badtz-Maru Travel Fun, which are currently serving non-Hello Kitty Jet routes.

EVA Air has previously indicated that Hello Kitty Jet flights were very profitable, but the airline also faces unique costs with the service such as licensing fees as well as product design and manufacturing. Despite a three-year hiatus for the themed experience, the return of Hello Kitty Jet flights shows that the colorful aircraft will likely remain in the skies for years to come.

Andrew Chen

Andrew is a lifelong lover of aviation and travel. He has flown all over the world and is fascinated by the workings of the air travel industry. As a private pilot and glider pilot who has worked with airlines, airports and other industry stakeholders, he is always excited to share his passion for aviation with others. In addition to being a writer, he also hosts Flying Smarter, an educational travel podcast that explores the complex world of air travel to help listeners become better-informed and savvier travelers.

ITA Airways, Lufthansa Partnership Moves Closer in New Approved Plan

ITA Airways aircraft at Rome Fiumicino Airport. (Photo: ITA Airways)

The Board of Directors of ITA Airways, Italy’s flag carrier and wholly owned by the Italian Ministry of Economy and Finance (MEF), recently approved the business plan shared with the Lufthansa Group.

ITA Airways closed its 2022 with a loss of around 500 million euros. The EBITDA, a profitability indicator that shows a company’s income based on its operations, i.e. without taking into account interest, taxes, depreciation and amortization of assets, was also -338 million. These figures will undoubtedly influence the final price to be agreed upon with the German group, but the increase in fuel costs is likely to have played a significant role.

Despite the losses, ITA Airways has implemented a strong digitalization of its processes during 2022 and has also committed itself to the sustainability of its fleet, using new generation aircraft such as the Airbus A350 and sustainable fuels.

Lufthansa confirms its willingness to acquire 40% of ITA Airways to secure a strategic alliance in Italy. Although it is a minority stake, it will have an impact on the future of the Italian airline, which has been increasing the number of members in its “Volare” loyalty program and load factors on long-haul routes. The Italian airline is reportedly negotiating with Lufthansa to buy a 40 percent stake in the company, worth around €250-300 million, with the idea of buying the rest at a later stage.

Lufthansa CEO, Carsten Spohr, traveled to Rome on March 30 to meet Italian Economy Minister Giancarlo Giorgetti and ITA Airways President Antonino Turicchi, who approved the joint industrial plan. This will define the development of ITA Airways in terms of fleet, network and strategic objectives following the agreement with Lufthansa, and will take the industrial partnership between the two airlines one step further.

At the end of January, the Italian government signed a memorandum of understanding with Lufthansa, but the details of the negotiations have not yet been officially disclosed. However, it now seems clear that Lufthansa only wants to take a minority stake of the Italian airline.

However, the German airline is convinced that the industrial partnership will help turn things around and that it will be profitable, albeit being a minority shareholder. ITA Airways cannot continue to face the challenges of the domestic and international markets on its own. Fabio Lazzerini, CEO of ITA Airways, is fairly certain that the Italian Ministry of Economy will conclude the negotiations with an agreement that suits both the German group and the Italian airline.

The Lufthansa CEO was very clear stating that ITA Airways has lost money and this is reflected in the valuation, which is the last obstacle in the negotiations. However, he remains confident that he will be able to sign within the exclusivity period which expires on 24 April 2023.

Vincenzo Claudio Piscopo

Vincenzo graduated in 2019 in Mechanical Engineering with an aeronautical curriculum, focusing his thesis on Human Factors in aircraft maintenance. In 2022 he pursued his master's degree in Aerospace Engineering at the University of Palermo, Italy. He combines his journalistic activities with his work as a Reliability Engineer at Zetalab.

Canada Jetlines Announces 2022 Financial Results

Canada Jetlines Airbus A320. (Photo: Canada Jetlines)

Canada Jetlines, the self-identifying ‘value-focused leisure carrier’, has announced its full-year 2022 annual financial results reporting a loss of 13.4 million Canadian dollars ($9.9 million). The Canadian carrier began operations on 22 September 2022 with service from Toronto Pearson International (YYZ) to Calgary (YYC). A loss is to be expected given the cost of start-up operations and the leasing of two Airbus A320 aircraft. Jetlines reported total operating revenues for 2022 of 3.3 million Canadian dollars.

Eddy Doyle the airline’s chief executive officer stated: “We are pleased to report that several key milestones were achieved in 2022 that allowed Canada Jetlines to get airborne. In March 2022, Canada Jetlines received determination of Canadian ownership and control by the CTA (Canadian Transportation Agency) and in the month of May 2022 the CTA concluded that the company had sufficient funds to meet the CTA requirements to issue its commercial license once the Air Operator Certificate (AOC) would be issued by Transport Canada.”

“In November 2022 the Company completed its first charter flight and several ACMI (aircraft, crew, maintenance and insurance) flights for other carriers. The charter component of the business grew rapidly in December 2022 and with the entry into service of its second aircraft, Canada Jetlines fleet was being fully utilized throughout the month with most of its flights being composed of charter and ACMI lease contracts.”

Canada Jetlines met United Stated Federal Aviation Aviation (FAA) and Department of Homeland Security (DHS) requirements in late 2022. Services from YYZ to Las Vegas and Cancun began in February and March respectively and the airline has sights on other destinations south of the Canadian border. Doyle also added that the airline was seeing “a continuous improvement in our aircraft utilization as we grow our network and increase our charter business.”

In addition, this month Canada Jetlines announced that it was in discussions with Qatar Airways ‘to explore a potential collaboration between the two airlines,’ and ‘the possibility of including non-stop flights between Toronto-Pearson and Doha.’ Qatar currently flies non-stop to Montreal’s Trudeau International (YUL) from its Doha hub.

“We are pleased to discuss potential opportunities with Qatar Airways, an international airline known for its world-class service and consistently recognized by the industry and consumers as the best airline in the world,” Doyle said at the time of the announcement. The potential codeshare agreement would be ‘subject to government approval and completing all applicable agreements between the two airlines.’

To support its business plan Canada Jetlines has advised it will need to raise additional capital ‘in the form of debt, convertible debt or equity.’ Such additional capital would be required ‘in order to further invest in the business and facilitate the continued growth of the fleet, including the acquisition of additional leased aircraft, as well as additional working capital.’

John Flett

John has always had a passion for aviation and through a career with Air New Zealand has gained a strong understanding of aviation operations and the strategic nature of the industry. During his career with the airline, John held multiple leadership roles and was involved in projects such as the introduction of both the 777-200 and -300 type aircraft and the development of the IFE for the 777-300. He was also part of a small team who created and published the internal communications magazines for Air New Zealand’s pilots, cabin crew and ground staff balancing a mix of corporate and social content. John is educated to postgraduate level achieving a masters degree with Distinction in Airline and Airport Management. John has held the positions of course director of an undergraduate commercial pilot training programme at a leading London university. In addition he is contracted as an external instructor for IATA (International Air Transport Association) and has been a member of the Heathrow Community Fund’s ‘Communities for Tomorrow’ panel.

Global X to Launch New Nebraska-based Airline

One of GlobalX's first Airbus A320 aircraft registered N276GX (Photo: Global Crossing Airlines)

On Thursday, Lincoln, Neb. airport officials announced the introduction of a second airline behind United to operate to the airport. Delta operated out of the airport as well until pulling out of the city in 2022. The service will be operated by a relatively new airline: Global Crossing Airlines.

Global X is a Miami-based charter and cargo carrier, launching operations in 2021. The airline currently operates a fleet of five Airbus A320s and three A321 aircraft. An interesting fact to note is that the airline’s A320 aircraft have different configurations with a mix of business class and economy class seats depending on the plane. One example, N281GX is convertible from an entire 68-seat business class cabin to 150 mixed class seating arrangement depending on the customer’s needs according to the airline’s website. However, the service in and out of Lincoln will be operated by 150 seat, all economy class A320s. The cargo side of the company is operated by A321 aircraft. 

While Global X will provide the aircraft and crews for the new routes, customers will book tickets through Red Way. While customers can book a flight directly with Global X, they must book the entire aircraft. By having customers book through Red Way, the airline will be able to offer a service dubbed “charter by seat”. The service will technically be operated as a charter however, the CEO of Global X, Ed Wegel, stated that passengers wouldn’t notice a difference in the travel experience. 

A New Market

The airline will operate routes from Lincoln to Atlanta, Austin, Texas,  Orlando, Dallas Fort Worth, Las Vegas, Minneapolis and Nashville. The first two destinations to be served will be Orlando and Las Vegas beginning on June 8 with the rest following shortly after. All routes will be operated twice weekly to begin and on a seasonal basis, however, that could be upgraded based on demand. 

The majority of passenger operations for Global X thus far have been through charters for different organizations such as college sports teams, casinos and the military among others. The Miami-based carrier is also developing seasonal charters to service warm-weather destinations in the Caribbean along with the recent announcement of routes out of Lincoln. Global X also offers a service known as aircraft, crew, maintenance and insurance known in the industry as ACMI. Essentially, the carrier can also be hired to operate for other airlines in the short term to provide additional flying.  

Starting new services is costly for airlines, especially at new airports. Lincoln understands this and to make the market more attractive to Global X, the airport is providing the airline with a $3 million incentive fund to begin service according to an article published by the Lincoln Journal Star. 

Zach Cooke

Zach’s love for aviation began when he was in elementary school with a flight sim and model planes. This passion for being in the air only intensified throughout high school when he earned his Private Pilot Certificate. He then attended Embry-Riddle Aeronautical University, earning his certificates and ratings to later flight instruct and share his passion for aviation with others. He now resides in the North East living out his dream as an airline pilot.

All Nippon Airways Introduces Pikachu Jet

All Nippon Airways' Pokemon Air Adventure livery in cooperation with The Pokemon Company. (Photo: All Nippon Airways)

As Covid-19 pandemic-related travel restrictions worldwide — and most recently in Asia — continue to subside, airlines across the globe have made every effort to lure customers to return to the skies. Looking to a potentially younger traveler base, All Nippon Airways is becoming the fifth airline to cooperate with Pokemon Company to join the “Pokemon Air Adventure.” One of its Boeing 787-9 Dreamliners — registration JA894 — will now Pikachu and other recognizable icons on the fuselage.

All Nippon Airways, Japan’s largest airline, have followed in Singapore’s Scoot, Taiwan’s China Airlines, South Korea’s T’way Air and Japan’s Skymarks Airlines’ footstep to launch “Pikachu Jet NH.”

The latest Pikachu aircraft could carry 246 passengers with two classes configuration and expected to enter into the service on Jun 4, operating from Tokyo’s Haneda Airport to multiple cities, such as Bangkok, Singapore, Vancouver, Canada, Honolulu, U.S., Sydney, Manila, Philippine, Ho Chi Minh City, Vietnam, Delhi, Jakarta, Indonesia.

All Nippon will go further in offering Pokemon-related content such as Pokemon Kids TV and Poketoon on all ANA international and domestic flights in June and July respectively. In addition, some original souvenirs to be distributed to passengers as well.

All Nippon Airways’ aircraft has a history of featuring remarkable liveries before Covid, such as “Flying Honu” and Star Wars.

Pokemon launched the scheme before the lifting of travel restrictions with the aim of encouraging the people to explore the world again. Meanwhile, the aviation and travel sectors were left behind during the pandemic, the video game software giant was determined to support the industries by launching Pokemon Air Adventure.

“Pokemon would like to add to the celebration and offer you many days of tremendous excitement. We’d also like to lend a hand to the strongly affected airline and travel industries. With that in mind, we have to decide to launch ‘Pokemon Air Adventures,'” the Japanese gaming company said on its website.

The airlines participating “Pokemon Air Adventure” would provide a range of Pokemon experience to passengers. In Japanese city of Naha, Skymarks Airlines has a special design for the check-in kiosks, providing the Pikachu boarding pass and baggage tags to the passengers. China Airlines also provide a number of Pokemon theme products, ranging from boarding pass to mixed snacks.

However, All Nippon Airways and Pikachu haven’t revealed the further details about the other Pikachu products and the cabin design at the moment.

AirJapan Launches in 2024

Earlier, All Nippon Airways has unveiled its corporate strategy for the years spanning 2023-2025. It came after the report of the group’s first profit since 2019. The group is aiming to expand market share and profit through the development of three brands: All Nippon Airways; Peach — the low-cost carrier — and AirJapan, which the parent company is set to launch in February 2024.

AirJapan hasn’t announced the routes and destinations thus far, but the new carrier is expected to operate within Asia and offer affordable ticket prices to compete with no-frills airlines. Earlier, the carrier unveiled its seats with a 32-inch seat peach and crew uniform

BP to Exit South Africa’s Aviation Market, Impacting Airport Refueling Operations

A South African A330 taking off. (Photo: AirlineGeeks | James Dinsdale)

British oil and gas giant BP has decided to exit all of its aviation activities in South Africa, including refuelling planes at OR Tambo International Airport. The decision to withdraw, according to BP, is “as a result of Air BP’s current global business strategy.”

“As part of good business practice, Air BP reviews its portfolio on a continuous basis. In light of its latest review, a decision was taken to exit all of BP’s aviation activities – as operator at airports, and direct supplier to airlines – in South Africa,” said Hamlet Morule, BP Southern Africa’s spokesperson, in a statement to local outlet News24.

Last year, two Russian planes were unable to refuel at large international fuel suppliers at OR Tambo International Airport in Johannesburg and Cape Town International Airport. The fuel suppliers had to adhere to the sanctions imposed on Russia by their countries of origin and their own company policies. This event was widely reported and sparked discussions about the impact of political tensions on aviation fuel supplies.

Impact on South African Aviation Industry

BP has sent communications advising its customers of its decision to cease aviation fuel activities at East London and George Airports on March 31, and has withdrawn from Cape Town International Airport effective Jan. 31. BP Southern Africa has also decided to exit operations at OR Tambo International Airport and is currently serving notice to cease being managing participant, effective May 1. Customers have been informed of the decision to cease aviation activities at OR Tambo and King Shaka International Airports on April 30.

The decision is likely to have a significant impact on the South African aviation industry, as BP is a major player in the country’s aviation fuel market. It is unclear at this time how the industry will respond to BP’s withdrawal, but it is expected that other fuel suppliers will move to fill the gap left by BP.

BP emphasized its commitment to working with stakeholders to ensure that customers and the country are not adversely impacted as a direct result of BP’s exit from South Africa’s aviation market. No further information has been released to explain the decision at this time. We have requested information from BP in London and South Africa and will update this story when more information is available.

BP’s decision to exit all of its aviation activities in South Africa, including refuelling planes at OR Tambo International Airport, is “as a result of Air BP’s current global business strategy,” according to the company. The issue with Russian planes not being able to refuel due to sanctions may have played a role in the decision, but BP has not explicitly stated this. The company has informed customers of its plans to cease aviation fuel activities at several airports in South Africa, and has emphasized its commitment to working with stakeholders to ensure a smooth transition. Further details have yet to be released.

Victor Shalton

Victor Shalton's love for aviation can be traced to when he was 11-years-old. As a seasoned aviation writer, he takes pride in providing the best aviation coverage around the globe and is passionate about advancing his skills in the aviation space. In addition, he loves travelling, writing, arts and while his speaking engagements have taken him around the world, he is proud to call Nairobi home.

Emirates–United Partnership Takes Off

A United 777-200 at Chicago O'Hare International Airport.
A United 777-200 at Chicago O'Hare International Airport. (Photo: AirlineGeeks | Greg Linton)

Former rivals Emirates and United Airlines have launched a new partnership. The agreement, first announced in September 2022, includes reciprocal mileage earning and redemption opportunities, an interline agreement and a new United service between Newark Liberty International Airport and Dubai International Airport.

From Rivals to Partners

It was not long ago that the “big three” carriers in the United States were locked in a bitter dispute with the “ME3” or “Middle East Three:” Emirates, Etihad Airways and Qatar Airways. American, Delta and United alleged that the Middle East airlines received unfair subsidies from the Emirati and Qatari governments, allowing them to offer superior service at competitive prices. The three major U.S. carriers also claimed that their rivals were violating the Open Skies agreements between the United States and their respective countries.

For example, in March 2017, United Airlines employees rallied at Newark International Airport when Emirates launched a new service between Dubai and Newark via Athens, amid allegations that the subsidies received by Emirates was allowing it to undermine U.S. carriers. Then-United Chief Executive Officer (CEO) Oscar Munoz stated in an interview to Business Insider UK that he believed that Emirates would potentially lose $25 million dollars on the new route. Meanwhile, the Middle Eastern airlines accused their U.S. counterparts of receiving more than $100 billion in support from the American government through bankruptcy protection, antitrust immunity, grants and other methods.

Just as the dispute appeared to have been settled in early 2018, tensions reignited that December when the “big three” U.S. carriers accused Qatar Airways of planning fifth freedom routes after it acquired a 49 percent stake in Air Italy. Air Italy later ceased operations in February of 2020.

In the years since the peak of the dispute, tensions have quelled between the airlines. During the pandemic, American Airlines launched a strategic partnership with Oneworld partner Qatar Airways. In September of 2022, Emirates and United announced their new partnership, which is now fully implemented with United’s new route and reciprocal mileage opportunities.

The New Emirates–United Partnership

In November 2022, the first part of the partnership began, as Emirates and United began an interline agreement that gave Emirates passengers access to over 200 U.S. destinations. On March 25, 2023, United operated its inaugural flight between Newark and Dubai. The flight is now flown daily by a Boeing 777-200ER. While the service currently is not operated as a codeshare, the airlines have filed paperwork with regulators that suggests that a codeshare agreement will come in the future.

United MileagePlus members can also now earn miles on select Emirates flights when they are booked in conjunction with a United flight between Newark and Dubai. Similarly, Emirates Skywards members can earn miles on United flights booked through Emirates.

On the redemption side, United MileagePlus members can only redeem their miles on certain routes between Dubai and Africa, the Middle East, and the South Asian Subcontinent as part of an award ticket that includes a United flight between Newark and Dubai. However, Emirates Skywards members can redeem miles on all United flights.

“This agreement unites two iconic, flag carrier airlines who share a common commitment to creating the best customer experience in the skies,” said United CEO Scott Kirby when the partnership was first announced in September. Emirates President Sir Tim Clark added that, “two of the biggest, and best-known airlines in the world are joining hands to fly people better to more places, at a time when travel demand is rebounding with a vengeance…We look forward to developing our partnership with United for the long term.”

Andrew Chen

Andrew is a lifelong lover of aviation and travel. He has flown all over the world and is fascinated by the workings of the air travel industry. As a private pilot and glider pilot who has worked with airlines, airports and other industry stakeholders, he is always excited to share his passion for aviation with others. In addition to being a writer, he also hosts Flying Smarter, an educational travel podcast that explores the complex world of air travel to help listeners become better-informed and savvier travelers.

Kenya Airways Reports Massive Losses for FY 2022, Plans to End State Support by End of 2023  

A Kenya Airways 787-8. The airline has decided to lay off half of its pilots. (Photo: AirlineGeeks | William Derrickson)

Kenya Airways (KQ) has released its full-year financial results for the year ending Dec. 31, 2022, reporting a massive loss of Ksh 68.2 billion ($633 million) at a virtual investor briefing. The loss was attributed to the pandemic-induced decline in air travel and the resulting reduction in demand for KQ’s services.

Despite the losses, the airline remains optimistic and has developed a turnaround plan aimed at ending its reliance on state support by the end of 2023.

Here are the key highlights of the report:

Massive Losses in FY 2022

The pandemic-induced decline in air travel led to a significant reduction in KQ’s passenger numbers and revenue. The airline reported a loss of Ksh 68.2 billion ($633 million) for FY 2022, compared to a loss of Ksh 36.2 billion ($335 million) in FY 2021. The loss in FY 2022 was the largest in the airline’s history and highlights the severe impact of the pandemic on the aviation industry.

The airline’s revenue for FY 2022 was Ksh 36.9 billion ($342 million), a 55% decline from the previous year’s revenue of Ksh 82.6 billion ($765 million). The decline in revenue was due to the reduction in passenger numbers and the closure of international borders.

KQ’s Turnaround Plan

Despite the challenges faced by the airline, KQ remains optimistic and has developed a turnaround plan aimed at ending its reliance on state support by the end of 2023. The plan includes a number of initiatives, including:

Network optimization: KQ plans to optimize its network by focusing on profitable routes and reducing unprofitable ones. This will help the airline to reduce its operating costs and improve its profitability.

Fleet restructuring: KQ plans to restructure its fleet by retiring older aircraft and replacing them with newer, more fuel-efficient models. This will help the airline to reduce its fuel costs and improve its environmental performance.

Cost optimization: KQ plans to optimize its costs by reducing overheads, renegotiating contracts with suppliers, and implementing more efficient operational processes. This will help the airline to reduce its operating costs and improve its profitability.

Revenue diversification: KQ plans to diversify its revenue streams by expanding its cargo operations, developing new products and services, and exploring new markets. This will help the airline to reduce its reliance on passenger revenue and improve its overall revenue performance.

End of State Support by End of 2023

The Kenyan government has been providing financial support to KQ to help the airline weather the pandemic-induced crisis. However, the airline aims to end its reliance on state support by the end of 2023. This will be achieved through the implementation of its turnaround plan, which is expected to improve the airline’s profitability and financial performance.

Victor Shalton

Victor Shalton's love for aviation can be traced to when he was 11-years-old. As a seasoned aviation writer, he takes pride in providing the best aviation coverage around the globe and is passionate about advancing his skills in the aviation space. In addition, he loves travelling, writing, arts and while his speaking engagements have taken him around the world, he is proud to call Nairobi home.

Brussels Airlines Expands Fleet for Summer 2023, Appoints New CEO

A Brussels Airlines Airbus A330-300 departing Toronto. (Photo: Martin Kulcsar [CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0)])

Brussels Airlines, Belgium’s national carrier and a member of the Lufthansa Group, recently announced a wet-lease agreement with CityJet, an airline operating a fleet of CRJ regional jets out of Copenhagen and Stockholm. Under the agreement with Brussels Airlines, two of CityJet’s 88-seat CRJ-900 aircraft will join the Belgian carrier’s fleet from March 26 to October 28, 2023, providing daily flights from Brussels and Munich to European destinations including Bordeaux, Milan, Lyon, Geneva and Vienna. This agreement will also serve to strengthen regional (business) routes such as Hamburg and Birmingham, served in cooperation with CityJet, nine destinations.

In addition, 2 more Airbus A320s will be added to the Belgian fleet to support network growth and fleet expansion. These aircraft will become permanent members of the fleet and will be deployed throughout the medium-haul network, with a focus on new leisure destinations such as Djerba and Monastir.

With these changes, Brussels Airlines’ European operations will grow by 10 percent this summer. The fleet will soon increase from 40 to 45 aircraft (36 medium-haul and 9 long-haul). The Belgian airline already connects Brussels with more than 85 destinations, including 17 in sub-Saharan Africa.

Jan Derycke, Head of Strategy and Network Planning, said that with this fleet and network expansion, Brussels Airlines is achieving its growth target three years ahead of schedule. In 2023, Brussels Airlines will acquire three Airbus A320neo aircraft to significantly reduce CO2 and noise emissions on its medium-haul network. The airline also plans to operate its first Sustainable Aviation Fuel (SAF) flight in 2023. By 2030, Brussels Airlines aims to emit 50 percent less CO2 than in 2019 and plans to be carbon neutral by 2050.

Appointment of new Chief Executive Officer

Dorothea von Boxberg will be the new CEO of Brussels Airlines. Pending a decision by the Board of Directors of SN Airholding, Dorothea von Boxberg, currently Chairman of the Board of Lufthansa Cargo AG, will assume the position in Belgium on April 15, 2023. She will replace the current interim CEO Christina Foerster on February 1, 2023, after Peter Gerber, who has been in office since March 2021, leaves both Brussels Airlines and the Lufthansa Group after more than 30 years.

In addition to her role as CEO of Brussels Airlines, Dorothea von Boxberg will also assume the function of “Representative of the Board of Directors to the European Commission”. Dorothea von Boxberg’s successor at Lufthansa Cargo will be announced shortly.

Dorothea von Boxberg (1974) began her career in 1999 at the Boston Consulting Group. In 2007, Dorothea von Boxberg moved to the Lufthansa Group, where she held various management positions. Since 2012, she has been responsible for Customer Experience Design at Lufthansa. During this time, she and her team introduced a new generation of business-class seats. In 2015, Dorothea von Boxberg moved to Lufthansa Cargo AG, where she headed the Global Sales Management department. In 2018, she was appointed to the Executive Board of Lufthansa Cargo AG. Initially responsible for global sales, network planning, network management and product development, she will lead Lufthansa Cargo AG as Chairman of the Executive Board from 2021.

Vincenzo Claudio Piscopo

Vincenzo graduated in 2019 in Mechanical Engineering with an aeronautical curriculum, focusing his thesis on Human Factors in aircraft maintenance. In 2022 he pursued his master's degree in Aerospace Engineering at the University of Palermo, Italy. He combines his journalistic activities with his work as a Reliability Engineer at Zetalab.
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