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Air France KLM eyes East Africa in 2023 growth plan

The Exchange by The Exchange
March 1, 2023
in Africa, Airline, Travel
Reading Time: 4 mins read
836 8
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In Kenya, the airline is projected to register 19% more seats than in 2022.

  • The expected growth is attributed to increased business travel post the August 2022 general elections.
  • New Regional General Manager exhibits confidence in Nairobi’s ability to support Air France-KLM operations by providing a stable and developing business climate and regional connectivity.

Air France KLM Group is keen to solidify its position in the East African market and meet the fast- changing consumer needs, as it embarks on its 2023 growth plan.

Also read: Applications now open for Mastercard Smart Path Small Business programme

This comes after a challenging Covid-19 pandemic season that saw air travel falling sharply prompting airlines to cut capacity.

The new Air France – KLM General Manager, East and Southern Africa, Nigeria, and Ghana, based in Nairobi Marius van der Ham said: “For 2023, we aim to capitalize on the gains made in 2022 to further solidify our position in the East Africa market. This means we will improve our products and services, review our fare structure to match consumer needs, improve our loyalty program, and continuously improve our airport experience by providing our customers with great support both at our departure and arrival stations”.

KLM General Manager, East & Southern Africa, Nigeria, and Ghana, Marius van der Ham/COURTESY

As of 2022, at least 85 per cent of the airline’s capacity in the market was restored against the backdrop of the gradual lifting of the Covid-19 restrictions on passengers.

The contribution of corporate travelers sat at 75 per cent for the region versus 2019 while in Kenya the contribution was 95 per cent, and 16 per cent more in Tanzania, showing an above average recovery of this segment.

Also read: Top 5 ideas for small African Investors

Looking into 2023, Air France KLM Group projects that it will register at least 16 per cent more seats than in 2022 in terms of capacity in East Africa, South Africa, Nigeria and Ghana. This is back to the 2019 levels before the pandemic hit the aviation sector.

In Kenya, the airline is projected to register 19 per cent more seats than in 2022. This return to the pre pandemic numbers is attributed to increased business travel post the August 2022 general elections and renewed interest in Kenya as a destination.

“Kenya and the region remain a top priority of our network and we shall continue to provide a high-frequency network with updated products and services to connect Kenya to the world via our two hubs Charles De Gaulle – CDG and Schiphol. Besides, we will continue to apply our double hub strategy to offer more choice and flexibility to our customers” said Marius van der Ham.

Regionally, Air France KLM is set to expand its frequency by introducing new routes in the year. This is in addition to an already established network of KLM flights into Uganda and Rwanda.

Over and beyond expanding routes, Air France-KLM has announced ongoing plans to incorporate sustainability and reduce the airline’s carbon footprint in 2023. The objective is to achieve 30 per cent fewer emissions per passenger/km by 2030 versus 2019, have 10 per cent of Sustainable Aviation Fuel (SAF) as its power source, and 64 percent of the fleet consisting of NextGen aircraft.

“We have already engaged in an ambitious fleet renewal program focused on the Dreamliner and A350 for our long-haul network and the modern A220, A320 neo, and Embraer aircraft types for our short-haul operation,” said Marius van der Ham.

New products

On new products and services, the group recently rolled out a new solution aimed at providing a real-time and seamless end-to-end travel experience for travelers.

Dubbed Business Solution – the online portal is designed to offer travelers relevant travel information from policies and procedures, to the airline’s products and services, the latest news, waiver requests, and network updates. The solution replaces AgentConnect.biz.

In addition, Air France – KLM outlined ongoing measures to improve its Flying Blue loyalty program and increase its usability both for earning and burning customer miles.

This will be complemented by the implementation of branded fare structure that provides customers with more choice on what elements they value in their ticket which is a more basic product for price-sensitive customers while the fully flexible fare for customers in need of more options.

All fares can be customized by adding extra products or services like baggage, CO2 compensation, meals, etcetera.

Also read: 5 ways Africa can maximize its rare earths mining industry

For over a century, KLM has been a pioneer in the airline industry. It is the oldest airline still operating under its original name and aims to be the leading European network carrier in customer-centricity, efficiency, and sustainability.

The KLM network connects the Netherlands with all of the world’s key economic regions and is a powerful engine driving the Dutch economy. KLM Royal Dutch Airlines is part of the Air France–KLM Group. It is also a member of the global SkyTeam Alliance, which has 19 member airlines.

Since the merger in 2004, KLM has been part of the Air France–KLM Group. This merger gave rise to one of Europe’s leading airline groups, with two strong brands operating out of two major hubs: Amsterdam Airport Schiphol and Paris Charles de Gaulle.

The group focuses of three key activities: passenger and cargo transport, and aircraft maintenance.

Related

Source: The Exchange
Tags: africaAir France KLM eyes East Africa in 2023 growth planAir France KLM Groupairlinebusiness climatecarbon footprintCharles De Gaulle – CDGDubbed Business SolutionDutch economyEast AfricanFeatureGhanaKLM Royal Dutch AirlinesMarius van der HamNextGen aircraftNigeriaSAFSkyTeam AllianceSouthern AfricaSustainable Aviation FuelTravelафрикаأفريقياアフリカ非洲
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The Exchange

News analysis and comment from the The Exchange, a leading publication providing economic news and analysis on the capital markets of Africa, with a specific interest in Kenya, Uganda, Tanzania, Rwanda, Burundi, Ethiopia and Congo. We provide features in banking, capital markets, energy, mining, manufacturing and industrial development.

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