Aviation industry players urged to diversify revenue sources

By KBC Correspondent      

Aviation industry players have been challenged to implement cost cutting measures in a bid to remain afloat due to declining revenues.

Kenya Airports Authority KAA Managing Director Jonny Andersen (KAA) said that airports should diversify revenue sources if they are to remain in business.

Andersen said airports should pursue non-aeronautical revenue streams more aggressively which he noted is critical is increasing passenger spend hours at airports.

Speaking at Eldoret International Airport where he presided over the recognition of the airport as the most improved in customer experience in 2016, Andersen said that KAA was in the process of reviewing its flight rates to make it affordable and competitive in East Africa.

Andersen acknowledged that the national career, Kenya Airways has been facing turbulent times with dwindling revenue which he said has also impacted on KAA.

He welcomed the recent move by the U.S. Federal Aviation Administration (FAA) to approve Kenya to have direct flights to the U.S which he said will be a big boost to tourism which has a big potential in the country.

He cited the North Rift region which is rich in agricultural produce as one of the country’s regions with the high potential in exports.

The official said that Kenyan airports runways were also being expanded to accommodate bigger aircrafts.

Uasin Gishu County Secretary Peter Lelei said North Rift Economic Bloc (NOREB) which brings together eight counties in the region have already signed a Memorandum Of Understanding (MOU) and developed legal instruments to help them implement objects of the bloc.