KQ enters city bus business with Sh1,000 airport service
Kenya Airways has entered the road transport business to diversify earnings with a Sh1,000 bus ride from the city centre to Jomo Kenyatta International Airport (JKIA).
The shuttle buses are expected to offer competition to taxis that currently charge more than Sh2,000 for the journey.
The buses will depart from the central business district at 6am, 11am and 5pm. They will depart from JKIA to the city centre at 9am, 2pm and 9pm.
KQ reckons that the buses are meant to offer comfort and reliability in what could add to the sales of a carrier that posted a loss of Sh26.2 billion in the year to March.
SHUTTLE BUSES
“Spacious KQ shuttle buses now leave from the Sirios Car Park on Loita Street CBD, whisking you to JKIA in comfort and style,” the airline said in a notice.
“Why go through the hassle of finding your own way there when we will take you for just Sh1,000 one way?”
The carrier adds that each passenger will be allowed two pieces of luggage plus hand-held items.
The introduction of the shuttle service will compete with taxis that offer the services to tourists from hotels across the city and Kenyans who are flying in and out of the airport.
The Sh1, 000 charge is, however, well above the Sh100 charged by public service vehicles that operate from the CBD to the airport.
Data from the Kenya National Bureau of Statistics shows that JKIA handles more than 300,000 travellers every month providing KQ with a rich base to tap into.
DIVERSIFY REVENUE
The shuttle service will see the national carrier diversify its revenue sources as the airline struggles to return to profitability.
Kenya Airways announced a record net loss of Sh26.2 billion in the year ended March, widening the Sh25.7 billion net loss the year before.
The carrier, which is part-owned by Air France KLM, has been reducing its fleet, selling land and cutting jobs to recover from losses caused by a slump in tourism and the cost of renewing its fleet.
Finance director Dick Murianki said the airline, which says it ferries 11,500 passengers a day, reduced its operating loss by 75 per cent.
Gross profit rose 42 per cent and the operating loss shrank to Sh4.1 billion.
KQ passenger numbers rose to 4.23 million from 4.18 million as the proportion of occupied seats, the “cabin factor”, rose five percent to 68.3 per cent.
