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India: Jet Airways’ demise leads to spike in airfares, massive hotel cancellations

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The abrupt shutdown of Jet Airways operations has left Indian tourism industry a worried lot as it has led to an average 25 percent spike in airfares across the sectors leading to massive hotel cancellations, says industry experts.

Some key sectors like Mumbai-Hyderabad, Mumbai-Delhi and Delhi-Mumbai have seen the fares flying by 62 percent, 52 percent and 49 percent, while the Bengaluru-Delhi sector has had the lowest impact with a 10 percent surge shortly before and soon after the grounding of Jet.

Financially struggling for months, Jet Airways decided to call it quits from Wednesday night, leaving 22,000 jobs at stake and inconveniencing lakhs of passengers both domestic as well as international as Jet was the single largest airline out of and into the country.

“The impact of grounding of Jet Airways is not only restricted to the airlines sector as tourism has taken a severe beating due to the massive surge in airfares during the peak demand season. The impact is unlikely to fade away anytime soon and may continue into the rest of the year,” Travel Agents Association of India (TAAI) president Sunil Kumar said Friday.

He said, both the domestic as well as international travel and related sectors are affected as travelers are cancelling their hotel bookings as airfares have surged by over 25 percent on average.

Leading tour operator Cox & Kings’ Karan Anand said the shuttering of Jet has upset the travel plans of many who have booked on Jet.

“This is the peak travel season and the airfares for the next 10-12 days are up by at least 25 percent as the capacity has fallen massively dissuading last minute travelers,” he added.

However, online travel aggregator Easemyyrip.com co- founder Nishant Pitti tried to downplay the impact saying airfares normally fluctuate as the aviation industry is always unpredictable.

“It is true that passengers are in panic now but going forward there will not be much impact as other airlines like Spicejet and Indigo are adding more planes into their fleet which will help balance demand-supply gap,” he said.

Train booking and discovery platform Confirmtkt cofounder Sripad Vaidya said due to the flight charges going up, there is a huge surge in people opting for trains and buses.

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Gleam of hope for tourism

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On March 27, all roads led to Mombasa, Kenya, for a joint business meeting organized by Uganda and Kenya and the two Presidents of both countries actually attended. The meeting gathered ministers, key business persons from both countries to discussing topics of mutual interest for the growth. I was personally hesitated to go because my wife and daughter were traveling same week and did not want them to leave without me saying a goodbye.

I also do not like meetings where people talk and do not come up with real solutions for the existing problems. I only made the journey after my family blessed it. I took a morning flight aboard Kenya Airways to join two Kenya friends (Shivam Vanayak and wife) out of Nairobi to Mombasa and thankfully, they had managed to secure three tickets on Madaraka train. Securing seats on the train from Nairobi to Mombasa is an uphill task because of high traffic.

I had been to Nairobi a number of times with an aim of securing seats and failed because of the demand. The business class is even worse because the tickets are booked out first way in advance.

The staff of Madaraka train dress more like air hostesses with a proper Kenyan hospitality. The train carries about 1,500 people each way and there are two trains departing Nairobi daily for Mombasa and vice versa which means 3,000 individuals are dropped into Mombasa daily which is a massive business opportunity for the Mombasa service providers such as hotels, restaurants, taxi drivers, entertainment joints, boats, bars, etc.

The train goes through Tsavo National Park which is Kenya’s largest and oldest standing at 13,747 square kilometers. While on the train, we also saw the 300 kilometer long Yatta Plateau, the longest lava flow in the world. Tsavo is home to the larger mammals, vast herds of elephants, rhinos, buffaloes, lions, leopard, pods of hippo, crocodiles, water bucks, lesser kudu, genenuk and the prolific bird life.

At the business forum in Mombasa, I was given an opportunity to address the audience which included President Museveni and President Uhuru Kenyatta on behavior Uganda and Kenyan tourism group. My address focused on seven points we had agreed upon before the Presidents arrived at Sarova sands where the meeting took place.

The first point focused on the flights between the East African countries especially Kenya and Uganda. Our observations are that the tickets between Uganda and Kenya are very expensive because of the high taxes levied by both governments. Kenya for example charges $50 on every ticket and Uganda charges $57 which makes a total of $107. That figure is what should be the cost of a ticket between the two countries. We actually recommended that flights between the two countries be domesticated.

The second point focused on the East African tourists’ visas which have Uganda, Kenya and Rwanda working together. Our proposal was that the two presidents convince the Tanzanian leadership to join the good arrangements. Many tourists are finding it easy paying $100 for a visa that covers the above three nations which allows them to move back and forth.

Since some local airline operators such as coastal want to fly into Ugandan national parks, it would positively affect the tourism business between the four nations. The third point focused on politics. Overtime, we as the tourism operators in the region have seen politics affect tourism a lot especially during campaigns and since insecurity and tourism can’t co-exist, foreign tourists will fear to travel in the region.

The leaders were asked to remember what their actions mean to business and practice restrain. This particular point was well received by both leaders and we hope to see some change with time. The fourth point focused on trans-boundary tourism opportunities which focus on the shared tourism attractions such as Lake Victoria and Mountain Elgon.

The tourism fraternity feels we need a combined effort in exploiting the above because we miss out on potential billions of dollars that could come out of activities such as cruises, sport fishing, water transport, accommodations on the shores and the many islands found on the lake. We also talked about the joint marketing opportunities across the globe that would see millions flock to Uganda and Kenya hence more revenues.

We asked the presidents to go easy on the yellow card requirements for citizens from both countries because it inconveniences the business travelers most since they are frequent.

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Peacock Aviation taking legal action against Gambia carrier

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Nigerian Peacock Aviation company that worked as General Sales Agency (GSA) for the Gambian Mid Africa Aviation Company Ltd. that traded in Nigeria under the name Fly Mid Africa has petitioned the Gambian Government over the non-payment of passengers’ air ticket refunds before it exited Nigeria.

The petition which was dated February 12, 2019 and also copied to the Nigerian High Commission in the Gambia through its legal counsel Abrahams Ayobami  & Co. stated: “We are Solicitors to Peacock Aviation and Allied Services Ltd. [henceforth referred to as ‘Our Client’], a company duly registered under the Laws of the Federal Republic of Nigeria with its registered address situate at No. 19, Mojidi Street, Off Toyin Street, Ikeja, Lagos State, Nigeria and on its instructions and behalf we write you this petition.

“Our client was appointed the General Sales Agent [GSA] of ‘MID AFRICA AVIATION LTD’ trading under the name ‘FLY MID AFRICA’ on 24th April 2017 when the said company commenced its Airline operations in Nigeria.”

According to the counsel, “Our client, among other things was to manage and operate a city office to sell tickets to customers, a task our client was able to achieve within a record time of four weeks of operation.”

The petition stated further that, “Upon commencement of operations of the Airline, the cash sales in our client’s custody was used to take care of operation fees such as Air Landing, Parking Fees, Passengers’ Service Charges, Nigerian Civil Aviation Authority [NCAA] Fees, Catering, and Crew Hotel Accommodations.”

“With the above looking promising, the Airline ran into issues with their flight schedules which led to the cancellation of February and March 2018 flights and finally suspension of operations until further notice.”

While the suspension was still on, the airline got instructions to commence refund of issued tickets to customers which was carried out until exhaustion of all the funds at hand by the GSA according to its counsel.

“Our client then made a request for funds to be released to liquidate the outstanding refunds but same has remained hitherto unmet by the management of Fly Mid Africa Airlines for over one year now.”

The petition also has it that, there is still an outstanding refund of about Eleven million one hundred and fifty six thousand, six hundred and one naira fifty one kobo [₦11,156,601.51] and our client’s unpaid International Air Transport Association [IATA]/Billing Settlement Plan [BSP] Sales Overriding Commission of about Seven Million Naira [₦7,000,000] only with customers showing their grievances in all manners including laying siege to the GSA business premises and disrupting its activities.

Meanwhile, some have even threatened to commence legal actions against it; more so as customers are aware that tickets issued on the IATA BSP platform have been refunded and therefore query the reason for non-payment of their refunds.

Despite several email communications between our client and the said Fly Mid Africa Airline with reconciliation and adjustment of account settled between the parties, still the Airline has refused to release funds to pay innocent travelers their well-deserved refund even after leaving them stranded, disappointed and uncompensated, according to Chief Segun Phillips, Group Executive Chairman, Peacock Travels and Tours Limited.

However, in a bid to settle the matter amicably, the GSA wrote to the Nigerian High Commission in The Gambia to wade into the matter but was referred back to the Gambian Commission in Abuja as the right channel for resolving such issue.

As it stands, there is the total outstanding refund of about Eighteen million one hundred and fifty-six thousand six hundred and one naira fifty-one kobo [₦18,156,601.51] amounting to tickets refunds and GSA unpaid IATA BSP Sales Overriding.

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UNESCO, African Union and Ethiopia Role Model on World Press Freedom?

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Ethiopian Airlines, has been chosen as the Official Carrier for the 2019 World Press Freedom Day Global Conference to be held in Addis Ababa from May 1-3, 2019.

This conference is not without controversy, however.  According to Journalists without Border, terrorism charges have been systematically used against journalists ever since the 2009 terrorism law took effect. The charges carry long jail sentences and allow the authorities to hold journalists without trial for extended periods. There has been no significant improvement since the purges that led to the closure of six newspapers in 2014 and drove around 30 journalists into exile. On the contrary, another six-month state of emergency was proclaimed in February 2018, which the government could again use to arrest critical journalists and ban the public from watching or listening to certain broadcast media. The Internet and social networks are often disconnected while physical and verbal threats, arbitrary trials, and convictions are all used to silence the media.

The conference is jointly organized by UNESCO, the African Union and the Government of Ethiopia under the theme ‘Media for Democracy: Journalism and Elections in Times of Disinformation’.

UNESCO Spokesperson Roni Amerlan said: ” The offer by countries to host World Press Freedom Day marks their recognition of the value of the right to press freedom and freedom of expression.

We have often held World Press Freedom Day celebrations in countries in transition and we do not think that we should restrict our support for the recognition of press freedom and their participation in this awareness-raising event to countries which rank at the top of NGOs’ rankings.

Every year, 3 May is a date which celebrates the fundamental principles of press freedom, to evaluate press freedom around the world, to defend the media from attacks on their independence and to pay tribute to journalists who have lost their lives in the exercise of their profession. World Press Freedom Day was proclaimed by the UN General Assembly in 1993 following a Recommendation adopted at the twenty-sixth session of UNESCO’s General Conference in 1991. This in turn was a response to a call by African journalists who in 1991 produced the landmark Windhoek Declaration(link is external) on media pluralism and independence.

At the core of UNESCO’s mandate is freedom of the press and freedom of expression. UNESCO believes that these freedoms allow for mutual understanding to build a sustainable peace.

It serves as an occasion to inform citizens of violations of press freedom – a reminder that in dozens of countries around the world, publications are censored, fined, suspended and closed down, while journalists, editors and publishers are harassed, attacked, detained and even murdered.

It is a date to encourage and develop initiatives in favour of press freedom, and to assess the state of press freedom worldwide.

3 May acts as a reminder to governments of the need to respect their commitment to press freedom and is also a day of reflection among media professionals about issues of press freedom and professional ethics. Just as importantly, World Press Freedom Day is a day of support for media which are targets for the restraint, or abolition, of press freedom. It is also a day of remembrance for those journalists who lost their lives in the pursuit of a story.

The 26th celebration of World Press Freedom Day is jointly organized by UNESCO, the African Union Commission and the Government of the Federal Democratic Republic of Ethiopia. The main event will take place in Addis Ababa, on 1 – 3 May at the African Union Headquarters. This year’s theme“Media for Democracy: Journalism and Elections in Times of Disinformation”  discusses current challenges faced by media in elections, along with the media’s potential in supporting peace and reconciliation processes.

World Press Freedom Day will also be celebrated worldwide. Events will be organized in several countries to raise awareness about the importance of press freedom and journalists’  safety. More information of events will be available in the Events Map soon.

As the United Nations agency with a specific mandate to promote “the free flow of ideas by word and image”, UNESCO works to foster a free, independent and pluralistic media and the safety of journalists.

As the official carrier, Ethiopian will provide air transport service to the 1000-1500 participants who will be coming to Addis Ababa from around the globe.

Group CEO of Ethiopian Airlines, Mr. Tewolde GebreMariam, remarked, “We are honored to have been chosen to serve as the official carrier for this year’s World Press Freedom Day Global Conference. We are all the more delighted to be part of this noble cause which seeks to advance press freedom around the world.

Global, regional and national media stakeholders, high-level government officials, and journalists from across the globe will take part in the conference which will be held at the African Union Commission headquarters.

https://en.unesco.org/commemorations/worldpressfreedomday

 

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What is the discussion at the UNWTO / ICAO Ministerial Conference on Tourism and Air Transport?

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A Panel discussion is ongoing and a packed program are planned today for delegates in Sai Island, Cabo Verde attending the First UNWTO/ ICAO Ministerial Conference Tourism and Air Transport.

Air Transport and Tourism Policies: Regulatory convergence to maximize and balance their benefits

Air Transport and tourism depend heavily on each other and are essential engines of trade and economic growth for both developed and developing countries.

Despite the synergies, there can be conflicts between aviation and tourism policies due to the difficulties of States in balancing the interests of their airlines and the optimum development of their tourism industries. Separate sectorial policies result in a fundamental disconnect, which constitutes a severe deterrent towards the development of both sectors. How do we enhance policy coherence between the two sectors, harmonize the regulatory frameworks, and prevent separate sectoral policies? How can we strike a balance to maximize the overall benefits of tourism and air transport in the national economy?

What is the current status of Africa’s regulatory framework and what is its impact on tourism and air transport (the Lomé Declaration and the related Action plans both for Air Transport and for Tourism?

How can Africa benefit from and implement the joint UNWTO and ICAO Medellín Statement on Tourism and Air Transport for Development? How can the African Governments promote cooperation and compatible decision-making among transport and tourism authorities and other ministries in charge of related portfolios, including finance, economic planning, energy, environment and trade?

What are the challenges encountered by tourism stakeholders in reflecting tourism business interests in national and regional air transport policies?

Connectivity and Seamless Travel: Best practices to serve tourists and passengers

Aviation and tourism are a customer-focused economic sector.

While there is no single definition of air connectivity, it can be viewed as the ability of a network to move passengers involving the minimum of transit points, which makes the trip as short as possible with optimal passenger satisfaction at the minimum price possible. The realization of seamless travel can improve overall travel experience, which in turn fuels tourism demand.

With the recent launching of the Single Africa Air Transport Market (SAATM), open skies over Africa may soon be a reality, building the necessary regulatory framework to increase international intra-Africa travel.

How do we optimize the flow of passenger traffic through the air transport system? How can we generate sufficient demand for direct air services between African sub-regions, especially between the East-West coasts?

How well do current air service agreements (ASAs) contribute to connectivity and what are the prospects of air transport liberalization? What constitute the bottlenecks and slowdowns of seamless travel in the air transport system? What regulatory schemes can be used or developed to assure essential air services to Least Developed Countries (LDCs), Landlocked Developing Countries (LLDCs) and Small Island Developing States (SIDS)?

What are the existing best practices and how could they be extended and adapted to other regions? What are the factors influencing airline choices for different market segments (the intercultural dimension)?

Funding and Financing for Development: Pragmatic measures to build a transparent, stable and predictable investment climate

Infrastructure deficiencies in the aviation and tourism sectors have long been an issue in Africa. While plans are in place to develop and modernize aviation infrastructure, relief is years away at best.

In the meantime, there will be lost opportunities for creating jobs and spurring economic growth. Another issue is the proliferation of taxes on tourism and air transport despite the fact that the industry recovers a vast majority of its own infrastructure costs through payments of user charges, rather than being financed through taxation.

Revenue raised by taxes can often be outweighed by the relinquished economic benefits as a result of dampened demand for air travel.

This Session will focus on

a) the creation of good governance and enabling the environment to build business confidence and encourage investments, and

b) the consolidation of planning and development efforts for aviation and tourism infrastructure in multi-modal and urban planning initiatives. What are the challenges of financing development projects related to the tourism and air transport sectors, particularly in LDCs, LLDCs, and SIDS?

What are the success stories in financing tourism and air transport projects? How do consumers perceive taxes, charges, and others levies and how to ensure transparency of taxes and charges to passengers and tourists?

Why is the limited volume of international public finance and assistance for development currently available for aviation and tourism infrastructure projects?

Travel Facilitation: Advancing visa facilitation in supporting economic growth 

Travel facilitation aims at maximizing the efficiency of border clearance formalities while achieving and maintaining high-quality security and effective law enforcement. Allowing passengers/tourists to cross international borders safely and efficiently contributes significantly to stimulating demand, enhancing the competitiveness of States, creating jobs and fostering international understanding.

In spite of the great strides made in recent decades in facilitating tourist travel in Africa, there is still room for considerable progress. For example, electronic visa processes and delivery could make travel more accessible, convenient, and more efficient without a diminution of national security.

States should also look into increasing cooperation on bilateral, regional and international travel facilitation regimes. How can new technologies be used to make travel more accessible, convenient and efficient? How to define and implement policies which facilitate international travel and tourism while ensuring the security and integrity of traveler identification and border controls?

How well do e-passports, e-visas and other documentation deal with emergent threats to security? How could the African States learn from other effective best practices?

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