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Kenya Airways’ New Discount Subsidiary Counting on Middle Class

Kenya Airways’ New Discount Subsidiary Counting on Middle Class

In a year’s time Jambojet — Kenya Airways’ low-cost subsidiary — is planning to add destinations outside of the country’s major cities of Mombasa, Kisumu and Eldoret. Upon hitting the annual target of servicing 600,000 passengers, the airline will expand to regional cities including Kigali, Goma and Addis Ababa.

According to an article originally published by How We Made It In Africa, Jambojet is set to begin service at the top of next month. The two airlines are reorganizing routing, cutting flights from Kenya Airways and adding them to Jambojet’s scheduling, so the low-cost carrier can post a strong debut.

“First we want to establish, be sure that everything works because every start-up might have some teething problems here and there. We want to iron out those first,” Willem Hondius, Jambojet CEO told How We Made It In Africa.

Although one-way tickets are starting at $33, Hondius isn’t expecting every traveler to jump on the discount flight bandwagon. Largely, the company is depending on middle class citizens who may have business in another major city, or those who are accustomed to luxury bus travel.

“Now they can fly up and down in one day. They can grow their business by being there more frequently. Of course, the people who pay KSh.700 ($8) for the bus will not take the step towards flying because that [price] gap is too big,” he added.

“Their first aim is to move from the ugly bus to the nice luxury bus. The people travelling on luxury buses can start flying. There are also people who fly, but only once or twice a year and now they can fly much more frequently.”

How We Made It In Africa also reported that low-cost carrier Fly540 suggested that Jambojet’s entry into the market is unfair as the competitor’s parent airline is likely to monopolize.

However, Hondias insisted that for every carrier the competition is stiff and that low-cost airline market entries must be done the right way — and with a clever approach.

“It depends on how many passengers want to fly because if they are too few then we start fighting and then it’s a matter of who is the strongest and smartest. In Europe you will see there are not many low cost airlines flying together on the same route,” he said in the article.

“They avoid each other because they know we are fighting with the same weapons. You have to fight very smart otherwise you lose the game.”