Open skies treaty hurts Kenya Airways

NAIROBI - Liberalisation of air transport has negatively impacted Kenya Airways as opposed to boosting the airline’s growth, the firm has said.

“KQ used to be a leader in the East African region with a significant number of modern aircraft.

However, competition in the aviation sector in Kenya has increased significantly, driven by the liberation of the airspace, the airline said in a report on the proposed Public-Private Partnership between Kenya Airports Authority and Kenya Airways.

The concept of opening up air transport in Africa was established last January when 23 States signed the Single African Air Transport Market, Kenya among them.

This is almost 30 years since the adoption of the Yamoussoukro Declaration, followed 10 years later by the amoussoukro Decision D of 1999.

Kenya was estimated to add 7 .9 million Sh .14 billion annually to the country’s DP through the open skies agreement with KQ receiving unfettered access and multiple destinations to any city in the countries under the arrangement.

The national carrier, however, says this together with other operational challenges, has pushed Kenya’s national airline close to bankruptcy.

“The current aviation operation model in Kenya does not facilitate the growth of both Kenya Airways and Kenya’s biggest airport, Jomo Kenyatta International Airport, the firm stated.

While open-air transport in the European Union is guided by strict control of public subsidies given to airlines both by State authorities and indirectly by airports, signatory African states are yet to ensure there are no barriers in form of taxes on both passengers and airlines.

This has, in turn, created unfair competition maintaining the cost of intra Africa air travel high.