New aviation protectionism a threat to tourism growth

ARGUMENTS TO LIMIT GULF CARRIERS ACCESS TO NAIROBI IN PART BASED ON LIES

(Posted 18th February 2017)

‘If Irungu [Irungu Nyakera, Principal Secretary in the Ministry of Transport] is allowed to utter such nonsense without challenge, then I no longer know right from wrong. Repeating baseless and unproven allegations that Emirates, Gulf Air, Qatar Airways, Etihad and others are strong because they are subsidised by their governments, is pure fiction. They are strong because they give first class service and connect the world through their hubs. Kenya Airways’ situation is not dire because of those airlines bringing tens of thousands of wagenis to Kenya but because the airline was mismanaged. Limiting air access to Kenya will prove to be the downfall of tourism if that is to unfold like he told. Kenya should honour existing air service agreements with the UAE which allow unlimited access to our market. Unlimited access means more and more tourists from departure points in Europe and around the world that Kenya Airways’ head must spin. Putting applications by other airlines on hold to protect Kenya Airways, which maybe in 20 years may fly to those destinations, is the wrong way to go. We need tourists now, we need airlines now to be allowed to fly to Mombasa if our own airline stubbornly refuses to offer London to Mombasa flights. And to do this at the start of an election year, when already a political storm warning has been issued, will only hit those who urgently need to fill their beds at the coast, specially at the coast. Meanwhile does the financial future of Kenya Airways remain unclear until full year results are declared. This is just another bureaucrat gone crazy because he can and is not subject to checks and balances, those latter ones coming from the tourism private sector‘ did a regular Nairobi based source let fly in anger this morning when contacting this correspondent over emerging reports that air access might be severely restricted.
Irungu reportedly quoted a paper written by US carriers, which, having become lame ducks in the global aviation world with old fleets and poor ground and on board service levels, kept lamenting allegedly unfair subsidies by Gulf airlines, something the affected carriers and their respective governments strenuously denied. In turn stood American carriers accused to receiving massive subsidies themselves and weasling time and again out of payment obligations by invoking Chapter 11 to protect themselves from creditors.
‘Mr. Nyakera should have been smarter than trying to hoodwink us into believing those fake reports. In fact him bringing up such rubbish amounts to causing a diplomatic incident with the Gulf countries because, you can be sure, they will be reacting to it. Kenya once again stands in the wilderness as a country which as it pleases rips up international agreements at will, so who will trust us in the future? Imagine the Gulf airlines would suddenly turn the table and boycott us, even for a week, the losses would be massive. We need the world more than the world needs us and the sooner those dictator bureaucrats come to term with it the better‘ did another regular aviation source from Nairobi rant in response to the question what he made of the statements by the Principal Secretary.
Emirates is now also on record admitting that their third flight, which would be legal under the existing BASA in place between the two countries, has been denied but stopped short of accusing the Kenyan government of tearing up the bilateral air services agreement, to which the action however amounts.

Kenyan tourism operators present at the Ugandan Pearl of Africa Tourism Expo professed ignorance of the development but voiced instant concern that their government should most urgently review their action and stop imposing non tariff barriers, making access to Kenya more difficult with no actual guarantee that the protective measures will in any way benefit Kenya Airways. Said one on condition of anonymity: ‘If that is true than it is the wrong move. We need more seats to Kenya, not less. Mombasa is suffering because the charters to Mombasa have not returned the way we were told. We cannot stick our head in the sand, elections are coming and the impact of those may very well reflect in our arrivals. Some time ago we were even told that Fly Dubai would come to Mombasa, that Qatar has been given green light, but where are those airlines. Were we mislead or what?.
Another mentioned that such arbitrary decisions would make life for the Kenya Tourism Board more difficult because airlines could be less inclined to support marketing campaigns and offer special considerations while being used as a punch bag by sections of the Kenyan government. He went on to add that ‘A third flight from Emirates would have brought in people whom KQ will never be able to cater for. Most would be from departure points across their network and Kenya Airways can only dream to reach that many places. Those people now not being able to fly means they will go somewhere else and that will be Kenya’s loss‘.

Time no doubt to ponder this complex question and find out if protectionism in this day and age should still be an option or if one should not rather leave market forces untouched as long as certain rules of the game in place are observed by all concerned.