The low-cost subsidiary of Kenya Airways (KQ), Jambojet, has been licensed to operate flights to nine major destinations in East Africa, a development that will ward off competition and boost the earnings of its loss making parent company.

The initial one-year licence by the Kenya Civil Aviation Authority (KCAA), will enable the budget carrier to ply routes like Entebbe, Uganda; to Juba, South Sudan; Kigali in Rwand; Bujumbura in Burundi and Ethiopian capital, Addis Ababa. Other routes include Mwanza, Kilimanjaro, Dar es Salaam and Zanzibar, all Tanzanian cities.

The ideal cashcow

Jambojet currently operates a fleet of three Boeing B737-300s leased from KQ. The planes have since been retired by KQ. The budget airline operates the three aircraft in a single-class economy configuration.

The Low-cost carrier currently flies to Mombasa, Eldoret and Kisumu, routes yielded to it by Kenya Airways. All flights to Eldoret were ceded to Jambojet, while services to Kisumu and Mombasa were reduced.

Jambojet is leveraging on relatively cheaper fares to boost passenger traffic by encouraging more people to fly. Cost of tickets can be as low as half the prices of other commercial airlines. It currently charges Sh4,000 ($45) for a one-way trip from Nairobi to Mombasa. The airline is expected to add more local routes as it continues its growth. It is currently spending big on marketing and special offers.

With KQ recording losses over the past two years, Jambojet may become very critical to the company’s future, as it seeks bounce back to profitability. Jambojet’s appearance on the international stage is however expected to be met with stiff competition from existing regional carriers such as Rwandair, Fly540, Ethiopian Airlines and PrecisionAir.

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