RwandAir lays out growth plan

Flag carriers RwandAir and Qatar Airways are on course to conclude their stock acquisition deal in the coming months, as the partners remain committed to the Gulf carrier buying 49 percent into Rwandair. Qatar announced plans to acquire a stake in the Rwandan carrier in 2020 and is also participating sixty percent in developing Rwanda’s new eight million passengers a year airport at Bugesera, twenty kilometers due south of the capital Kigali. RwandAir lays out a growth plan. Speaking on the sidelines of last week’s 79th IATA AGM, where she was named board chair for the year, RwandAir Chief Executive Officer Yvonne Makolo outlined the carrier’s priorities in the coming months ranging from fleet, partnerships, and route development. Disruptions emanating from the Covid-19 pandemic and Qatar’s subsequent hosting of the FIFA 2022 World Cup, which consumed a lot of their time, had put the deal on the back-burner, but “we are now back on track and we are hoping that we can conclude that in the next few months,” Makolo said. “But even without that official signing, we are still working very well together. Whether it is extended codeshares and the cargo element, a lot of commercial initiatives are ongoing,” she added. The extended codeshare, for instance, had allowed RwandAir to operate the Kigali-Doha route that was previously tagged to Entebbe when Qatar operated it. Through that, RwandAir can connect its passengers to more European destinations and nine US markets. Network development Makolo says the service to Paris, which launches on June 27, is a logical step “because we are already flying to Brussels, and we shall tag Brussels to Paris, so that is low-hanging fruit for us. We are still on track to launch direct flights to Paris on June 27. For now, that is the single new long-haul route this year, but we are also looking at increasing our frequencies to London from the current four flights a week to daily for the winter season.” Yvonne Makolo (center) is flanked by IATA Director General Willie Walsh (left) and Mehmet Nane, Vice President of Pegasus Airlines and the previous Chairman of the IATA Board of Governors, during last week's AGM. (IATA) RwandAir sees good potential feed for the service from its network of destinations in central and southern Africa. The carrier also plans to launch new services to Mombasa, Zanzibar, Maputo, and Luanda, which should provide additional feed. Opening the latter markets, however, as well as increasing frequency to Accra to a daily service, is dependent on how soon new narrowbody aircraft can be secured. Makolo confirmed that discussions to join the One World alliance have been ongoing, and although nothing has been finalized, it is something she would want to see happening down the road. Fleet Makolo says RwandAir, which plans to double its fleet over the next five years, is finalizing its fleet mix. The carrier plans to acquire more 737s and narrowbodies to replace the CRJ900 on which it pulls the curtain. She did not disclose what type is being considered for this role, although the De Havilland Canada Dash 8-400 will stay on in the fleet for an extended period because “we have a domestic airport which has a very short runway. So, we are still looking at what can replace that.” RwandAir operates a mixed fleet of thirteen aircraft comprising Airbus A330s, Boeing 737, Bombardier CRJ -900, and De Havilland Canada Dash 8-400, with an average of 10.2 years. The carrier took delivery of its first dedicated freighter last December, a 737-800SF, which has been used to launch the Kigali cargo hub in partnership with Qatar Airways. Subsidiary QAS Cargo has devoted a 777F and an A310 freighter to the operation. The 777 operates twice a week between Doha and Kigali, while the A310 and 737 distribute cargo within Africa. Rwandair can also purchase its clients' capacity on the 777 and the A310. “So far it has been going very well,” says Makolo, “we are looking to expand into more markets within Africa. Our own dedicated freighter is also doing well operating three times a week to Sharjah in the UAE and within Africa to Nairobi, Entebbe, Brazzaville, and Bangui and we are looking at opening additional routes.” Overall, business is still mixed. Passenger numbers are still below pre-pandemic “but in terms of revenue, we are back to pre-pandemic. We are hoping to see passenger numbers also catch up by year-end or early next year.” Connectivity A champion of open skies, Rwanda was among the very first signatories to the Single African Air Transport Market SAATM. So it is understandable when Makolo feels frustrated by the hesitancy of other African countries, including some of the 35 signatories, to get the initiative off the ground. “SAATM is a no-brainer because when you say you want to grow aviation within the continent, there is no way that is going to happen when you have all these restrictions in terms of BASAs that dictate the type of aircraft you are going to operate, which points you are going to enter, how many frequencies you are going to operate and whether they give you 5th freedom or not. That is not going to work,” she says. The only glimmer of hope she sees is the eleven countries that signed up a SAATM pilot actually operationalizing it between themselves. The results might convince the laggards to come on board. But even if everybody were to open up, she sees a disconnect with borders that are still closed. “We need to look at the visa regimes within the African continent and how we are making it so difficult for people to move within the continent.” RwandAir already operates in some of the markets that have signed with SAATM and is hoping to build on that for growth. “We are happy about how they we are doing. For some of the routes we are operating under 5th freedom rights, which is a key part of SAATM and which is part of our strategy for opening up new routes, tagging them 5th freedom, and once they are developed, we go direct.” Makolo sees partnerships among African carriers also with network carriers from outside the continent as pivotal to improving connectivity to a level where travelers have more flexibility and choice. It is also a win-win. Partnering with African airlines gives their international partners expanded access to the African market. “On the other hand, we are also able to access the international market without incurring the additional burden of investing in equipment and route development, to reach those markets.”

No results