28-Jan-2011 2:59 PM

Kenya Airways unhappy over pricing on Nairobi-Mombasa route

Jetlink and AirKenya have requested the Kenyan Government intervene in the ongoing "price war". Kenya Airways recent price decrease on the Nairobi-Mombasa route by 22% (The Nation, 27-Jan-2011). The rivals say they are unable to recover running costs if they match Kenya Airways pricing on the route, arguing that the carrier has engaged in "predatory pricing" with the intention of locking them out of the market. Jetlink CEO Elly Aluvale said: “What we are witnessing is uncompetitive behaviour by certain players who are prepared to charge below cost with the sole intention of killing competition and thereafter hike the fares.”

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