Kenya Airways Resorts to Technology to Seal Revenue Leaks

Kenya Airways (KQ) has launched a new revenue management solution which will enable the airline to predict consumer behaviour, in addition to improving availability and price offering to its customers.

KQ becomes the first airline in Africa to implement the Altéa Network Revenue Management System which will optimize returns from all bookings made and in turn increase overall airline revenues going forward. This system has been implemented by Amadeus.

One of the biggest challenges for airlines in revenue management is striking a balance between the late booking high yield markets and the early booking low yield markets.

KQ turnaround strategy

With this solution in place, Kenya Airways will have the ability to seamlessly maximize on the late high yielding demand but still cater to the early booking traffic whilst remaining competitive.

“As the market dynamics and our customer behavioural patterns change, it is important to continue innovating and improving processes to meet those changes. We will be able to know and understand our customers even better and in turn avail more competitive fares to them” said Sebastian Mikosz, Kenya Airways Group CEO & Managing Director.

This is part of the airline’s turnaround strategy to keep growing revenues as we and continuously improving the customer journey.

“This exercise began in February 2019, after a thorough selection process of the implementation partner. The team has worked round the clock to deliver on all project requirements within the shortest time possible and I commend them all for a job well done. Our customers are at the core of all we do and this is why implementing cutting edge technology that makes the customer journey more pleasant is a big deal for us” said Ursula Silling, Kenya Airways Chief Commercial Officer

With its enhanced forecasting capabilities, KQ can capitalize on opportunities in its network that enhances the movement of optimal traffic.

Additionally, the airline can sustain growth by leveraging on the agility of the system to react to an ever-changing industry”

Maher Koubaa, Executive Vice President Airlines, Middle East, Turkey and Africa at Amadeus, said: “This partnership will strengthen the relationship between Kenya Airways and Amadeus. We are dedicated to working closely together to deliver a new approach to revenue management to support the complex and specific needs of this rapidly evolving airline. The right offer management strategy is vital to underpin an airline’s growth and optimize its revenues, and we are excited to see how Altéa technology can enable Kenya Airways to achieve its business goals”

Kenya Airways has always focused on making Nairobi a world-class hub and this is one of the steps in that direction. The system through its customer-centric approach will enable the airline to fly more guests to Nairobi, across Africa and beyond.

Tendering Processes under Scrutiny

In September, the Directorate of Criminal Investigations (DCI) commenced investigations into procurement and tender processes of multi-billion loss-making national carrier Kenya Airways (KQ).

The DCI has written to the KQ senior management demanding that documents on the firm’s tender and procurement process for the financial period between 2017/8 and 2018/9. It also wants the airline to produce its procurement guidelines since the year 2015.

The probe by DCI investigators will focus on procurement of services for the maintenance, repair and overhaul of aircraft engines.

Procurement and budget plans, tender advertisement/request for proposal, list of prequalified suppliers and tender documents for potential bidders are also within the DCI’s radar as they investigate.

Information on individuals who make up KQ’s Procurement and Tender Committee for the same period being probed is also being sought by the sleuths.

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