Dhaka Hazrat Shahjalal International

Rapidly expanding Kenya Airways charts growth with plan to serve every inhabited continent by 2017

Kenya Airways plans to launch its first services to North America, South America and Australia by 2017, making it one of the few carriers to serve every inhabited continent. While these three continents will give Africa's currently fifth-largest airline by seats a global presence, its future is pegged on Asia, with the carrier over the next 10 years planning to launch seven new routes into China, six in the Indian Subcontinent and three across North and Southeast Asia as well as having a growing presence in Europe and the Middle East. It is poised to become Africa's largest carrier.

Growth will be fuelled by Africa's status as a burgeoning market, as well as reliance on partners: Kenya Airways will open routes to SkyTeam member hubs in Xiamen (Xiamen Airlines), Hanoi (Vietnam Airlines), Seoul (Korean Air), Moscow (Aeroflot) and Prague (Czech Airlines). The intercontinental focus follows Kenya's strong emphasis on regional Africa, with the carrier aiming to serve every African nation by the end of 2013. 

Etihad Airways' all-economy service another move in addressing low yield markets

Etihad Airways this month announced plans to introduce its first "all economy" class aircraft to its fleet in Oct-2010. This carrier will be the only non-LCC in the Middle East operating such a configuration, although the product bears some similarity to to the ‘Gulf Traveller’ product that CEO, James Hogan, introduced while heading Gulf Air. The purpose is mainly to tap into the high volume but low yielding markets more effectively. This segment is being addressed aggressively by neighbouring flydubai, based in Dubai and, a few kilometres further along the road in the UAE, the highly successful Sharjah-based Air Arabia. Other low cost airlines from outside the UAE are also targeting the UAE markets. Full service airlines around the world have long struggled with the decision whether to adopt a LCC subsidiary or to segment their operation in this way. In each case different considerations apply. Etihad, in treading the middle path, may have got it right in this market.