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Kenya Airways to increase capacity to China; Fly540 launches Nairobi-Dar es Salaam service

Analysis

Kenya Airways (+1.1%) announced plans to increase capacity to China, deploying B777 widebody aircraft, configured with 28 business-class seats and 294 economy-class seats, on services to Guangzhou and Hong Kong during the upcoming China National Day Golden Week travel period.

1Time (-2.9%) CEO Rodney James called for authorities to allow South African low-cost carriers to operate more routes into the rest of Africa. The carrier recently launched Johannesburg-Maputo service but is limited to 575 seats per week. The carrier believes it could more than double traffic if it was permitted to operate sufficient capacity. Mr James hopes that growth in tourism in coming months would result in more traffic rights on the route for 1Time.

Fly540, subsidiary of Lonrho (+4.7%), announced launched Nairobi-Dar es Salaam service on 20-Sep-2010.

Middle East shares were mostly stable with Kuwait National Airways, Royal Jordanian and Jazeera unchanged while Air Arabia (+0.2%) gained slightly.

Selected African and Middle Eastern airlines share price movements (% change): 20-Sep-2010

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