Kenya Airways rightly sinking down. Infact it needs to collapse for other airlines to learn a lesson. How retrogressive is it that such a carrier can decide to close its doors to business innovation.
KQ has been persistent in packaging and costing air travel as a luxury for the rich and not a mode of transport to stimulate economic growth for all.
Air travel costing remains a mystery in Kenya. A 1hr 30 minutes flight to Wanjiru costing 9,000/-; a 40 minutes flight to Malindi 15,000/- ; and to Kisumu 10,000/- This gives as a simple conclusion, that they can as well charge 4,000/- to Kisumu or Malindi and still remain in business so long as the plane in use is of bigger passenger capacity.
KQ, instead of selling its high capacity booing crafts, they should redirect them to do cheaper air Matatu between Nairobi – Mombasa – Kisumu to attract low income earners.
Thinking global does not necessarily bring high gains, thinking local does. KQ has been in a hurry to reap from the white man while forgetting that the black Kenyan man is doing well with his small scale potatoe farm.
I strongly recommend the KQ management to go for internship at Equity bank to learn simple model on tapping gains among the middle class.
Once they have picked the skill and start earning, they can visit Safaricom on tips of “how to intelligently rob” the low income earners by making small but consistent increase in cost, as some of us win 1 million after traveling and playing “bonyeza na ndege”.
I am convinced the MD is a sleeping giant. Unfortunately he will bring it down, go to the village, run for governor and win. Ok, Equity bank, please try this field. Some lots of profit lying idle somewhere.
Opinion by Andrew Andala