US firms to help lobby for direct flights to Kenya after the US-Africa Summit ties

Direct flights between Kenya and the United States are on track to begin early next year, Kenya’s Transport minister has said. The government is counting on the support of three US business giants — Delta Airlines, Boeing and General Electric — to lobby for clearance and set in motion the process of launching the scheduled flights. Cabinet Secretary Michael Kamau said this on Thursday as he revealed details of discussions with US regulators and firms during last week’s US-Africa summit, which saw more than 40 African leaders hosted in Washington, DC. He said the Kenya government had fruitful talks with the US Federal Aviation Authority and the Transport Safety Authority about progress towards Nairobi’s Jomo Kenyatta International Airport attaining FAA’s Category One status. This is required of all airports before they can have direct flights into the US.

EBOLA CLIPS AIRLINES

As Ebola continues to claim more lives in West Africa, Nigeria announced another case of the disease on Thursday, bringing the total confirmed cases in Africa’s most populous country to 11.

Health Minister Onyebuchi Chukwu told reporters in Abuja, the capital, that the latest patient is a doctor who helped treat the first Ebola case in the country, Liberian-American Patrick Sawyer, who arrived from Liberia last month with the virus and died on July 25. All those who are ill with Ebola in Nigeria had direct contact with Sawyer.

Ebola has killed more than 1,000 people and sickened nearly 2,000 in its current West African outbreak, which has hit Guinea, Liberia, Sierra Leone and Nigeria. So far, Nigeria has recorded three deaths.

www.noisehead.com/mypage/jimboy

www.noisehead.com/mypage/jimboy

SH1 TRILLION US INVESTMENT

Kenya seeks to tap into over Sh1 trillion US investment in Africa
Read more at: 

US AFRICA SUMMIT 2014

The Obama administration sought Monday to strengthen ties with Africa at an unprecedented summit with dozens of African leaders, grappling with issues such as investment, poverty, terrorism, corruption and deadly diseases.

Nearly 50 African heads of state attended the gathering focused on how to build democracy and raise investment in the continent, which is home to some of the world's fastest growing economies and an expanding middle class.

Yet an outbreak of deadly Ebola virus, which has killed at least 887 people in West Africa, cast a pall over the summit. Leaders from Sierra Leone and Liberia canceled their plans to attend and the U.S. set up medical screenings for other officials traveling from those nations.

Those who did attend, including women dressed in brightly colored African wear, crowded hotel lobbies and buses. Pickup trucks carrying signs with messages like "End Dictatorship in Ethiopia" cruised downtown streets. Traffic was snarled and streets were closed around event sites.

Inside the summit venues, top U.S. officials spoke positively about U.S.-Africa relations and progress on the continent.

"I think something like 10 of the 15 fastest-growing countries in the world are in Africa," Secretary of State John Kerry said. "Africa will have a larger workforce than India or China by 2040."

The Obama administration says it is committed to renewing the Africa Growth and Opportunity Act, which is set to expire next year. Since 2000, AGOA has been at the center of the U.S. efforts to promote trade and investment in Africa while opening new sources of material for U.S. producers.

"AGOA has made it possible for Ford Motor Co. to export engines duty-free from South Africa, where Ford has invested over $300 million so they can supply engines worldwide," Kerry said. "And the efficiencies of that operation have allowed Ford to create 800 new jobs at their Kansas City plant as part of the global production line."

South Africa President Jacob Zuma said he wants to see AGOA renewed for another 15 years, with the inclusion of South Africa. South African exports to the United States were worth $3.6 billion in 2013, according to the American Chamber of Commerce. It said the United States was the biggest destination for South African exports of passenger cars, receiving 42 percent of the total.

About 600 U.S. companies do business in South Africa, which has one of the biggest economies on the continent, but struggles with low growth, labor unrest and high unemployment.

"Almost 95 percent of South African exports receive preferential treatment under AGOA," Zuma said in a speech at the U.S. Chamber of Commerce. "We strongly believe that by endorsing the extension of AGOA, the U.S. will be promoting African integration, industrialization and infrastructure development."

The U.S. is competing in Africa with China, which surpassed the United States in 2009 as Africa's largest trading partner. China has been increasingly investing in natural resources projects in Africa, and Chinese leaders make frequent trips to the continent.

In Kenya, Aly-Khan Satchu, the owner of a financial management company and a prominent social commentator, said he believes the U.S. is "a bit late" to what has been a global re-engagement with Africa. That movement in Kenya has been led by China, which is helping build new roads and overpasses, and new skyscrapers rising above Nairobi, the capital.

Vice President Joe Biden warned that corruption was a red light to progress in Africa. He called on African nations to improve rule of law with better court systems, independent oversight of government departments and vetting of police and security officials.

"Corruption ... not only undermines but prevents the establishment of genuine democratic systems. It stifles economic growth and scares away investment. It siphons off resources that should be used to lift people out of poverty, and it weakens your military readiness," Biden told summit attendees. "It creates vulnerabilities to foreign manipulation and interference."

Somali President Hassan Sheikh Mohamud said extremist militants threaten to hamper progress in eastern Africa. Mohamud's Western-backed government has promised to put the country on a path toward democracy and economic progress, despite regular attacks by the Islamic group, al-Shabab.

Mohamud, whose life has been threatened by the group, said young people in his country are being herded into al-Shabab training camps, toys are replaced by guns and the youth are missing out on simple pleasures like going to a movie or relaxing on a beach.

Health and Human Services Secretary Sylvia Mathews Burwell and other U.S. officials spoke Monday with Guinean President Alpha Condé and senior officials from Liberia and Sierra Leone about the Ebola outbreak. Burwell and Dr. Tom Frieden, director of the Centers for Disease Control and Prevention, emphasized ongoing U.S. support for efforts to control the outbreak, officials said.

LINDA MUIRU HELICOPTER WEDDING

Characterized by exclusive chopper, posh limo rides and glamorous fashion, the wedding of Linda Muiru; the daughter of celebrated televangelist bishop Pius Muiro was such an eye stopper and breath taking.

9 million Kenyan shillings was the total amount of money spent on the wedding celebration, given the poverty index in the country such a lump-sum leaves many with many questions lingering. The question many will ask was whether the money spent on the wedding worth it?

Was the wedding of televangelist bishop Pius Muiru's daughter a show off or genuine?

Etihad expands code-share deal with Jet

Jet Airways and Etihad Airways have outlined plans to reinforce their long-term commitment to the growth of India’s economy and aviation industry, including a major new turnaround strategy for Jet Airways to return to profitability in three years. 

The two airlines have been codeshare partners since 2008 and their relationship was strengthened in November 2013, after Etihad Airways received approvals to acquire a 24 per cent stake in Jet Airways, marking it the first investment by a foreign carrier in India’s airline industry.

The wide-ranging partnership has numerous advantages for travellers, including enhanced connections across the world through an expanded codeshare agreement, and reciprocal ‘earn and burn’ rights and tier level recognition on the JetPrivilege and Etihad Guest frequent flyer programs.

Jet Airways and Etihad Airways also stand to benefit from cost savings and synergies in areas such as fleet acquisition, maintenance, product development and training, and continue to explore collaborative purchasing opportunities for fuel, spare parts, insurance and technology support.

Supporting the partnership, the Jet Airways Board recently approved a three-year business plan to reshape the airline and secure its long-term future. The plan incorporates a series of critical measures that lay the foundations for a return to profitability, such as long-term network, fleet and product developments to optimise the airline’s domestic and international operations.

Focus areas for international operations will include network developments, including new services to markets such as Europe, China, Australia and Southeast Asia, expanded frequencies to existing routes and additional codeshares. Jet Airways’ two and three class aircraft product will also be enhanced and the seat count optimised on wide-body Boeing 777 and Airbus A330 aircraft.

In addition, the domestic business model will improve connectivity across India and worldwide, while removing complexity in product and fleet, including the standardisation and reconfiguration of the Boeing 737 fleet.

To initiate the three-year turnaround plan, the Jet Airways Board and management team have already worked with auditors to clean up its balance sheet and write down overvalued non-cash assets.

Jet Airways has announced a new team at the helm with Cramer Ball as its new Chief Executive Officer and Subodh Karnik as the Chief Operating Officer pending regulatory approval.  Mr Ball 46, an Australian national, is a certified accountant and an accomplished airline executive with extensive experience in the aviation industry. Mr. Karnik brings with him rich experience in the aviation sector leading and assisting airlines in fleet and network planning, global alliances, joint ventures and improving overall efficiencies at international airlines.

Naresh Goyal, Chairman of Jet Airways, said: “The coming together of Jet Airways and Etihad Airways has already proved a success for the two airlines and, importantly, has been beneficial for travellers, and will also bring significant benefits to the Indian economy, both in terms of growth,  job creation, trade and tourism. However, the market has been challenged by factors such as a difficult economic climate, volatile fuel prices, and the rapid growth of low-cost carriers in India. Tough measures were needed to ensure Jet Airways’ long-term future, maximise its partnership with Etihad Airways, and enhance the benefits this partnership offers to passengers.

“Jet Airways is renowned for introducing quality to India’s airline industry and its time to re-energise and re-establish ourselves as the country’s leading full-service airline. Our international operations are already profitable and contribute 45 per cent to our total revenue. We will continue to build on this strong foundation as part of our three-year turnaround plan and increase the contribution to 63 per cent by 2015. At the same time, we will address challenges in the domestic market with a model that removes complexity in our fleet, product and brand. This is not a short-term strategy, but we are optimistic about the future and confident about achieving the intended results.”

James Hogan, President and Chief Executive Officer of Etihad Airways, said: “India represents a considerable opportunity for airlines worldwide, with more than 42 million international travellers reported last year and impressive future growth rates predicted by IATA. The challenge is ensuring that our industry is efficiently catering to rising demand, not only in India’s major destinations, but also smaller cities that remain largely unconnected and underserved.

“The Etihad Airways and Jet Airways partnership has significantly improved connectivity between India and the UAE, and through our combined network and codeshare partnerships with other airlines, the Indian public has convenient access to destinations across the Gulf region, Middle East, Africa, Europe and North America. We are also bringing more travellers from these destinations to India, supporting the country’s aviation industry and economy.”

Etihad Airways, which celebrates the 10th anniversary of its inaugural flight to India this September, currently operates 112 flights per week to 10 Indian destinations. During the first half of 2014, more than 621,000 people travelled on the airline’s India services, representing an impressive growth rate of 51 per cent in comparison to the same period last year.

Last month, the airlines announced a significant expansion of their codeshare agreement, after obtaining regulatory approval to codeshare on 43 additional routes, bringing the total number of services in their codeshare agreement to 71.

Under the development, Etihad Airways placed its ‘EY’ code on domestic services in India for the first time, with the codeshare agreement now including 31 Jet Airways routes from hubs in Mumbai, Delhi, Chennai and Bangalore to regional centres in Ahmedabad, Amritsar, Goa, Hyderabad, Jaipur, Kochi, Kolkata, Lucknow, Mangalore, Patna, Thiruvananthapuram and Vadodara.

Also included are Jet Airways flights between Abu Dhabi and Bangalore, Chennai, Cochin, Delhi, Mumbai and Hyderabad, and Etihad Airways flights between Abu Dhabi and Ahmedabad, Bangalore, Chennai, Hyderabad, Kochi, Kozhikode, Mumbai, New Delhi and Trivandrum.

The two airlines will commence a new marketing campaign tomorrow, with the tag line ‘Flying India Forward’, which highlights their collaborative offering for Indian travellers. Together, Jet Airways and Etihad Airways operate more international flights from India than any other airline, and provide unrestricted opportunities to earn and redeem miles on their integrated frequent flyer programs. The campaign will feature in newspapers, magazines, radio, online, and also airport displays in India.

Tags: etihad airways, jet airways