23 April 2008
Nairobi — National carrier Kenya Airways will increase fares on several routes within the next two months.
CEO Titus Naikuni blamed the move on the high price of jet fuel.
"The increase in fuel prices cuts across the board, and being one of those affected, Kenya Airways will be reviewing fares on all routes in line with this price increment," noted Mr Naikuni.
Costs of operation per route and air fares charged by competitors on the same will form the basis of any increments, the airline said.
Currently, the airline's fuel bill stands at Sh2.7 billion every year.
"In the past six months, we have seen jet fuel prices rise almost three times, and we have to take all this in consideration, even our internal use of the fuel," added Mr Naikuni.
The cost of crude oil in the international market has continued to break through historical figures. Last Monday, the prices hit an all time high of $117 per barrel. This has in turn affected the cost of production for many companies.
Meanwhile, Mr Naikuni was at pains to clarify that their codeshare arrangement with Rwanda Air was suspended, not cancelled.
Speaking to reporters at his office, he said the suspension arose from lack of certification for a third party airline, Jetlink, contracted by Rwanda Air.
Through the codeshare arrangements, airlines in contract undertake to market their flights as one.
However, both parties must undergo International Air Transport Association Operational Safety Audits (IOSA), amongst them.
Mr Naikuni explained that Rwanda Air contracted the services of Jetlink after its planes experienced technical problems.
However, according to Kenya Airways, Jetlink is not ISO certified nor had they audited it.
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