Aviation strike leaves travel agents with a Sh500m dent

Travel agents in the country are counting loses to the tune of Sh500 million, from the one day strike by aviation workers that paralysed operations at major airports in the country.

While normalcy returned yesterday after a truce between Kenya Aviation Workers’ Union (KAWU), Central Organisation of Trade Unions (COTU) and the government, the one day strike left hundreds of travellers stranded as airlines either rescheduled flights with some completely cancelling.

Major airlines that cancelled flights include Kenya Airways, Ethiopian Airlines, KLM, Air France, Emirates and British Airways, with the Jomo Kenyatta International Airport being the most affected.

“Some airlines temporarily suspended their flights to next week. Passengers are being rebooked to new flights while for urgent ones, arrangements have been made to book them on other airlines,” the Kenya Association of Travel Agents (KATA) told the Star.

The cancellations has seen travellers now push agents for compensation and refunds for delays and missed business opportunities, KATA said, leaving many businesses in financial pain.

 “We are estimating total industry losses of over Sh500 million in just a single day,” KATA chief executive Nicanor Sabula told the Star, “ Routes affected were mainly Middle East (Doha and Dubai), most African routes and some European ones like Amsterdam and Paris.”

Airlines also owe travellers monetary compensation and a duty of care if a flight is cancelled less than 14 days from departure and no acceptable rerouting is available.

They are required to offer a re-route or a pro-rata refund (based on mileage). If the new flight is the next day or any later, appropriate accommodation and transfers must be provided.

Compensation can range between Sh3,000 per hour, to between 30,000 and Sh80,000 for long-haul flights.

Both domestic and international flights were affected by the Wednesday strike where unionisable aviation workers were protesting against the ongoing talks to have Indian firm-Adani Holdings invest in expanding and operation of JKIA.

“This is highly regrettable and it is a result of a government that is choosing to operate in an opaque manner. If only there was transparency in all this, I am sure we would not have been in this quagmire,” Pollmans Tours and Safaris group director of operations, Mohammed Hersi, said.

JKIA, which accounts for more than 80 per cent of Kenya’s international arrivals, before tourists connect to other destinations in the country, has about 39 airlines that use the facility, connecting Kenya to more than global 64 destinations directly.

It is a key entry point for tourists visiting the country both for leisure and business , handling about  8.6 million passengers annually.

COTU Secretary General Francis Atwoli said the strike would have been averted if Kenya Airports Authority management had consulted the unions.

The unions and the government however reached an agreement, including full disclosure of the proposal, which will guide the next step as the government seeks to expand JKIA to remain competitive.

This is in the wake of continued investments by regional neighbours of Rwanda, Ethiopia, Uganda and Tanzania, whom are all seeking to tap the growing revenues in the aviation industry, with tourism being a key component.

Meanwhile, KAT is pushing for a wider adoption of the latest payment systems including cryptocurrency, to ensure Kenya remains competitive in the fast-changing travel industry.

According to the association, the industry is witnessing the convergence of technological innovations, changing consumer behaviour and regulatory shifts that are reshaping the payments landscape not only in Kenya, but also across the globe.

“From traditional credit cards to a myriad of digital payment options, the expectations of travellers have evolved. We must adapt to these changing dynamics, ensuring that our payment systems meet the evolving needs and expectations of our customers,” it said.