KLM to open Kigali route

[RoMax]

KLM is set to begin operations in Rwanda with plans to operate five flights a week between Amsterdam and Kigali, a top official has said.
The Minister of Infrastructure in Rwanda, Vincent Karega, told a Cabinet meeting on Friday that the Dutch Airline would begin in the next three months.

http://allafrica.com/stories/201005170779.html

Not so good news for SN wich has currently a total monopoly on Rwanda-Europe traffic.

[cathay belgium]

Hi,

Think it's time to react fast for SN now..
if they must wait for LH taking them over completly the battle can quick be over ...

Time for change.., a good response..
fleet renewal, internal policies, advertisement ...

BRU is a bit too close by AMS for just sitting duck

CX-B

[NCB]

This is exactly what I am talking about.

If SN sits down on its throne thinking that it is the untouchable king of Africa, before they realise it, their throne will be lifted and thrown into the sea by competitors and SN will become a regional airline of LH.
SN will lose market share like ice melts in the Sahara if there is not a significant change in strategy and a drastic capacity boost to all markets in Africa to secure a more significant market share and brand recognition, especially to markets served by AF-KL.

There is little money and Korongo is only taking more time, but 2011 will certainly be the year of truth for SN.
If there is no full LH acquisition by 2012 it would be safe to start looking for alternative strategies to increase capital, like going public, in order to finance a drastic expansion in Africa.

[RoMax]

This is exactly what I am talking about.

If SN sits down on its throne thinking that it is the untouchable king of Africa, before they realise their throne will be lifted and thrown into the sea by competitors and SN will become a regional airline of LH.
SN will lose market share like ice melts in the Sahara if there is not a significant change in strategy and a drastic capacity boost to all markets in Africa to secure a more significant market share and brand recognition, especially to markets served by AF-KL.

There is little money and Korongo is only taking more time, but 2011 will certainly be the year of truth for SN.
If there is no full LH acquisition by 2012 it would be safe to start looking for alternative strategies to increase capital, like going public.

I aggree. But keep in mind SN said that their sixth A330 will probably used for expanding their East and Central-African network. And this "KLM move" will probably speed up SN's plans to deploy a sixth A330 to AFI. And Kigali is probably one of the destinations that will be upgraded than. SN said that the decision for this sixth A330 could be made sooner than expected. The know that they can't wait to long to expand their network or they will loose it.

[LJ]

KLM is set to begin operations in Rwanda with plans to operate five flights a week between Amsterdam and Kigali, a top official has said.

First seeing before I believe this. I can't think of any reason for KL to fly to Kigali apart from cargo, retaliation of LH (ehh SN) invading AF territory and/or their EBB isn't running great.

Moreover quoting the cited article

The Minister of Infrastructure, Vincent Karega, told a Cabinet meeting on Friday that the Dutch Airline would begin in the next three months.

This seems very strange to me. If KL would start ops within 3 months we would have known this before. Moreover, one would think this flight would be in the timetable.. However, if this is true I can obly see KGL as an extension of the EBB flight as they don't have an aircraft available.

BTW does the Martinair cargo flight still operate from KGL?

[NCB]

However, if this is true I can obly see KGL as an extension of the EBB flight as they don't have an aircraft available.

They may not have one now, but they will have one soon.

http://www.planespotters.net/Production ... ex.php?p=8

[BrightCedars]

5 flights a week seems a lot, it definitely won't be a nonstop service.

Not that SN's service itself would be nonstop, what is their current offer on KGL?

SN had to expect some kind of response from AFKL after their latest African expansion.

I don't think any overreaction is required.

[sn26567]

Not that SN's service itself would be nonstop, what is their current offer on KGL?

Three flights a week on days 2-4-6 in a triangle with Entebbe (Uganda).

[Conti764]

Since Rwanda is a former colony of Belgium as well, is the local market of a similar size to FIH's? Might we see SN eventually evolve to a daily KGL flight?

Anyway, they had this destination for themselves for many years now, probably building up a nice customer base. If the entry of KLM in this market forces them to lower their sky high fares on KGL, they won't lose those customers I guess.

[Darjeeling]

I know they are also keen to open Monrovia/Roberts Intl' in 2011 in close coop with DL, since DL is unable to operate by itself there it seems. It should be a tag-on to either Lagos, Kano or Accra.

Monrovia + Kigali = A LOT of connecting traffic to the U.S.

I told you: we'll soon see the limits of the "all codeshare policy" on the pond routes, AFA SN is concerned.

[airtrotter]

if KLM will also start service to ROB, that means another route where SN had no direct competition before. AirFrance/KLM is hitting back...
what can SN do? anyone a guess?

[LJ]

Anyway, they had this destination for themselves for many years now, probably building up a nice customer base. If the entry of KLM in this market forces them to lower their sky high fares on KGL, they won't lose those customers I guess.

Not entirely. KL offers a service to KGL via NBO (on KQ). I did search the internet yesterday, and I was amazed by the dumping of tickets to KGL by KL...especially from the UK and USA (lowest fares starting at GBP290 ex from London to GBP560ex from other UK regional airports). It seems as if KL is very aggressive in the UK and USA markets.

if KLM will also start service to ROB, that means another route where SN had no direct competition before. AirFrance/KLM is hitting back...
what can SN do? anyone a guess?

Hoping that they loose so much money that they decide to quit ROB (again). However, if they do this flight in cooperation with DL, I think KL may have the upper hand.

I know they are also keen to open Monrovia/Roberts Intl' in 2011 in close coop with DL, since DL is unable to operate by itself there it seems. It should be a tag-on to either Lagos, Kano or Accra.

I doubt Accra, Lagos or Kano need extension. Kano is already flown in conjunction with Abuja and Lagos and Accra have enough traffic to sustain their own flights. However KL could reinstate the old Amsterdam - Conakry - Monrovia - Amsterdam and Amsterdam - Freetown - Monrovia - Freetown Amsterdam flights (this leaves only Lilongwe and Harare to be reopened before the entire 80s/90s KL Africa schedule is back online). Too bad that KL0577 is already in use......

[sn26567]

AF/KLM is going to announce record losses for the fiscal year 2009/2010 ending 31 March 2010. Their fares to SN destinations in Africa are not sustainable!

[tolipanebas]

if KLM will also start service to ROB, that means another route where SN had no direct competition before. AirFrance/KLM is hitting back...what can SN do? anyone a guess?

Since SN is no longer a little unbound airline from a small neighbouring country, but rather part of their most feared competitor, a reaction from AF/KL to SN's large expansion in West-Africa with 4 new destinations (3 of them with a comfortable AF monopoly) was widely expected, as they have understood SN is going to be turned into their main competitor on AFI and thus need to react.

Nothing to overly worry about really: AF/KL has to take away pax from SN where they can and SN/LH have said they intend to focus on traditional AF/KL's markets for future expansion. This is called competition, and in the end, AF/KL has far more to loose from it than underdog SN/LH.

I'd say: let the fight begin, and pass on the popcorn... Oh, and decide on that 6th A330 by the end of this year!

[Conti764]

Nothing to overly worry about really:

I don't understand the almost hysteric reactions neither. I wouldn't even be all to worried if SN was still on its own, and certainly not with LH backing and in the future fully owning them. The Germans know that the best way to brake AFKLM's reign on Africa is through SN with all their African experience, know-how and reputation.

And besides, what did people expect? AFKLM just laying back and looking how SN taps into their market?

[Vinnie-Winnie]

AF/KLM is going to announce record losses for the fiscal year 2009/2010 ending 31 March 2010. Their fares to SN destinations in Africa are not sustainable!

Why?

Africa is probably one of the most lucrative destinations in Y & C for AF. Now if they choose to be agressive in their pricing through KLM and not AF, that means they are keeping their home market safe (France) whilst attacking SN through KLM, the low cost subsidiary that does not have such a big relationship with africa!

Little loss for AF on the high yielding end if you ask me. So little they can ill afford given the size of AF-KLM.

[BrightCedars]

I think a nice and hard retaliation on the part of SN/LH would be to open a route to Madagascar.

That would really fly in the teeth of an over protected AF market and would sure yield good returns for SN.

[LJ]

KLM, the low cost subsidiary that does not have such a big relationship with africa!

I don't know which countries you consider to be part of Africa, but Nigeria, Ghana, Kenya, Tanzania and South Africa have been on the KL map for many years. Furthermore, KL's network in the past (late 80s, begin 90s) was on par with SN. TRue if you mean French speaking Africa, incorrect if you mean English speaking Africa.

[BRUMRU]

I think a nice and hard retaliation on the part of SN/LH would be to open a route to Madagascar.

I've thought for a long time what if SN could combine Antananarivo in Madagascar (to try and dent the more or less AF monopoly) with Moroni in the Comoros which has no direct service to France/Europe. Comorians in France at the moment have to change in Reunion or take Yemenia...not sure if that is still the case.
Pipe dream maybe though, to unchartered territory for SN ....

[Vinnie-Winnie]

KLM, the low cost subsidiary that does not have such a big relationship with africa!

I don't know which countries you consider to be part of Africa, but Nigeria, Ghana, Kenya, Tanzania and South Africa have been on the KL map for many years. Furthermore, KL's network in the past (late 80s, begin 90s) was on par with SN. TRue if you mean French speaking Africa, incorrect if you mean English speaking Africa.

KL has always been king of the connecting flights. SN tried to ape that strategy and miserably failed. Now KLM pretty much bought over by AF because it wasn't doing too well. Its strategic importance to AF was that it could funnel passengers through a new hub and open new destinations on the cheap relying on a good network.

Notice the role of KLM: it is the arm of AF that enables AF to grow on the cheap without having to funnel passengers through AF, whih is more expensive and higher premium.

Now you are right about KLM serving Africa, but notice how many of these destinations actually have an P2P profile and which ones have a connecting profile...