RWANDAIR’S FUTURE – INSPITE OF CHALLENGES – REMAINS BRIGHT
(Posted 12th July 2015)
When RwandAir took delivery two weeks ago of their eight aircraft, another Bombardier Q400NextGen turboprop in their regular two class configuration, it was a day of celebration but also one for reflection on where the airline is heading.
Usually well informed sources close to the airline confirmed that with this milestone development now accomplished is the airline looking ahead and getting ready for their next major moves, among them going long haul and identifying a strategic partner.
There is broad speculation that Ethiopian Airlines may be in pole position to be selected by the Rwandan government to come on board, proverbially as well as literally, with suggestions having been made to this correspondent that the writing is on the wall. Chairman of the Board of Directors is the former Ethiopian Airlines CEO Girma Wade, one of Africa’s leading aviation professionals who during his time at the helm of ET had laid the foundations for the phenomenal growth and financial success the airline has enjoyed since then.
Also on the team in Kigali at the RwandAir headoffice is Gobena Michael as what can be broadly termed a commercial director position, even though his actual title does not say that. He too came from Ethiopian Airlines and the presence of two Ethiopians in the top executive suites of the airline, board and management, might of course be construed that ET is indeed a frontrunner in Rwanda’s search for a strategic airline partner able to take not just a 30 percent stake but also able to help the airline grow and, through synergy effects, boost the bottom line.
Going long haul is now firmly on the cards after RwandAir’s CEO John Mirenge during the last meeting with this correspondent confirmed that indeed two Airbus A330 have been ordered and are due to arrive in the 2016/17 timeframe. With a fleet of now eight short and medium haul aircraft can RwandAir generate the passenger numbers needed to transit in Kigali on to their expected wide bodies and with destinations like China already floated will the groundwork to promote such long haul services no doubt start soon.
In Africa does RwandAir now connect Johannesburg daily with Kigali, three of those flights routing via Lusaka at present, though it is understood that the airline does eye Harare for a similar deal.
In West Africa it is Brazzaville, Libreville, Douala, Lagos and Accra, all destinations which can generate passenger numbers to connect in Kigali not just into the airline’s comprehensive East Africa network but presently already to Dubai. Flight to Dubai leave daily, three times a week with full traffic rights via Mombasa, and with RwandAir’s excellent reputation for inflight service, on time departures and operational safety can it be assumed that their passengers will fly long haul with them too when such flights are launched.
Unlike in some other countries in the region, where government support for national airlines is far from at its potential best, has Rwanda demonstrated by action that RwandAir is a strategic asset and tool to bring more tourists and business visitors to the country and in particular be at the core of the strategy to position Kigali as a MICE hub, when the new national convention centre will eventually open. Again, unlike in other countries in the region where sections of the public make it their favourite pastime to bash their national airline over the proverbial head and have unleashed vicious social media mobbing campaigns against them, in Rwanda a different picture emerges. A hiccup here and there notwithstanding do Rwandan’s stand firmly behind their national airline, aligning both government and people behind their national carrier and supporting to put their money where their mouth is.
The search for a strategic partner could be concluded within a few more months and it cannot be ruled out that the format of privatization will be by direct private treaty rather than an open and lengthy bidding process, as long as the offer on the table meets if not exceeds the expectations of the government in Kigali. The anticipated capital injection will allow Rwanda to put their airline on a sound financial footing and then use resources towards the construction of the new airport and the completion of the national convention centre and the adjoining hotel.
Tourism growth, incidentally the only country in the region which has persistently recorded growth in numbers and revenues over the past decade, seems to support the commitment made by the Rwandan government to throw its weight behind the sector, which has been firmly rooted at the top of the economic performance rankings and been the leading foreign exchange earner for many years now.
Be sure to watch this space to be the first to know when the two Airbus A330’s will join the RwandAir fleet and what new destinations will then be launched over and above the 16 now served.
