Kenya Airways Chief Operating Officer Bram Stellar said the three-way strategy will involve the company -- which dominates pan-African air space -- acquiring five new aircraft, increasing its flights and flying to new destinations.
"We can tap more from the landlocked countries of Africa," Stellar told Reuters on Wednesday in an interview, noting the expansion on the first of the three African routes was projected to take place in the first half of the airline's calendar year, which begins in April.
However he acknowledged rising fuel prices will eat into the airline's margins and force it to raise fares.
Ranked as the leading airline in Africa with 43 African routes under its belt, Kenya Airways said it was negotiating for new landing rights with governments on the continent to secure several other African routes.
The carrier, which is 26 percent owned by Air France-KLM , plans to purchase two Boeing 737s and three Embraer planes.
Stellar said a key growth avenue was the southern Sudan capital Juba, which attracts daily flights and has experienced exponential growth propelled largely by business travellers. Flights are set to increase to twice a day.
"There are few hotels in Juba so people travel in the morning and leave in the evening. Lack of direct international flights to Juba also means we connect those passengers from Nairobi," he said
Threats to Kenya Airways loom, mainly from rising oil prices.
"If oil prices continue like this, airfares will go up ... because a major part of our cost is fuel, so we cannot pretend that our fares for passengers and rate for cargo have nothing to do with oil prices," he said.
Being part of the SkyTeam marketing alliance led by Delta Airlines has proved to be an easier way for Kenya Airways to tap Asian growth without investing heavily in infrastructure.
"In the last three months we have had major carriers join SkyTeam which is a good sign ... (and) will help us penetrate Asia and the Gulf," said Stellar. (Reuters)
