Kenya's Jambojet to open Mombasa base in 3Q22, grow cargo – ch-aviation

Jambojet (JM, Nairobi Jomo Kenyatta) will open a secondary hub in Mombasa in the third quarter of 2022 in an effort to grow its domestic and regional network, according to Managing Director Karanja Ndegwa.
The Kenya Airways (KQ, Nairobi Jomo Kenyatta) subsidiary currently operates out of its main hub at Nairobi Jomo Kenyatta, but has been seeking Kenya Civil Aviation Authority (KCAA) approval since last year to open up other bases in regional cities, including Mombasa and Kisumu, he said in an interview with Kenya’s Business Daily. In 2020, it was granted various domestic and regional traffic rights for its proposed Mombasa operations.
Jambojet already holds about 23% market share at Mombasa in terms of weekly airline seat capacity, second after the 33% of parent Kenya Airways, ch-aviation capacities data reveals. Top routes (by weekly capacity) from Mombasa it may want to explore, include Nairobi, Addis Ababa (Ethiopia), Kigali (Rwanda), Mumbai Int’l (India), Zanzibar (Tanzania), and Entebbe/Kampala (Uganda).
Other carriers with crew bases at Mombasa include Blue Sky Aviation Services (Kenya) (SBK, Mombasa) and Mombasa Air Safari (RRV, Mombasa).
Meanwhile, the budget carrier will debut cargo operations in early February, after having received the required regulatory approval from the KCAA to fly goods on its passenger flights on both domestic and regional routes, using DHC-8-Q400s, Ndegwa said. The carrier has six of the type in the fleet, ch-aviation fleets advanced data shows.
Cargo routes to be served include Goma in the Democratic Republic of Congo (DRC), and Kisumu, Mombasa, Eldoret, and Malindi in Kenya.
“Jambojet has received regulatory approvals from the Kenya Civil Aviation Authority (KCAA) to start ferrying cargo across local and regional markets where we operate and we are set to start next month,” he confirmed.
Following a three-month suspension, De Havilland Aircraft of Canada (DHC, Toronto Downsview) has resumed the completion of its remaining DHC-8-Q400s having reached an agreement with labour unions.
“The company is completing the aircraft currently under production. The announcement follows the ratification on October 26, 2021, of collective agreement extensions by members of Unifor Locals 673 and 112 who work at the Toronto Downsview site,” the manufacturer said.
It did not specify any details of the agreement.
De Havilland announced in February 2021 it would suspend the production of the Dash 8s for an unspecified time after the units already under construction had been completed. The lease on its Toronto Downsview facility is set to expire by the end of 2021, following the 2018 sale of the site to the Public Sector Pension Investment Board. Following the February announcement – which cast doubt on the future employment of around 500 staff – unions began a strike in July, halting the completion of partially-assembled aircraft still on the production line.
The manufacturer underlined…
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Kenyan airlines have resumed domestic flights following the lifting of COVID-19 travel restrictions to/from the capital Nairobi.
From May 2, 2021, Kenya Airways (KQ, Nairobi Jomo Kenyatta) resumed 2x daily flights to Mombasa and daily flights to Kisumu, and would continue to review increasing its frequencies pending demand, it announced in a statement.
For its part, Jambojet (JM, Nairobi Jomo Kenyatta) resumed services to all of its six destinations on May 2, including 4x weekly between Nairobi and Mombasa, twice a week between Nairobi and Kisumu, and once weekly between Nairobi and Kisumu. It also resumed twice-weekly flights between Mombasa and Eldoret and Kisumu; and weekly services between Nairobi and Malindi and Ukunda, the carrier announced on its social media feed.
In an effort to clamp down on the spread of COVID-19, the government, on March 26, had suspended all travel by road, rail, or air in and out of Nairobi, Kajiado, Machakos, Kiambu, and Nakuru counties. This had resulted in the country’s airlines suspending their domestic…
Kenya’s National Treasury has exempted cash strapped Kenya Airways (KQ, Nairobi Jomo Kenyatta) from paying a minimum tax of 1% of its gross turnover, meaning the flag carrier will now only pay income taxes when it returns to profitability.
Without the tax shield, Kenya Airways was scheduled to have made its first minimum tax payment by April 20, 2021, covering the first three months of its current financial year. The airline had generated revenues of KES52.8 billion (USD485 million) in the year ending December 2020. A similar turnover this year would have meant a minimum tax of KES528 million (USD4.8 million), reported Kenya’s Business Daily.
The tax shield was announced by National Treasury Cabinet Secretary Ukur Yatani in a Kenya Gazette dated March 17, 2021, without actually naming the airline: “In exercise of the powers confirmed by section 13(2) of the Income Tax Act the Cabinet Secretary for National Treasury and Planning directs that the income derived from or accrued in Kenya by an airline in which the government of Kenya owns at least 45% of…
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