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Kenya Airways new budget subsidiary Jambojet to focus on stimulating demand in domestic market

Analysis

Kenya Airways low-cost carrier subsidiary Jambojet plans to launch operations on 1-Apr-2014 with 737-300 services on Kenya's three largest domestic routes. Jambojet becomes only the fourth LCC brand in the intra-Africa market and the first by most measures for Kenya.

Jambojet is primarily a defensive move for Kenya Airways, which recognises that if it did not make an early move in the LCC sector a competitor would. But it also sees a budget brand as the best option for stimulating demand and growing Kenya's domestic market.

Jambojet plans to only operate domestically in its first phase. International services could come later but Kenya Airways seems in no hurry to pursue ambitious growth for its new subsidiary.

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