Well finally we have another David trying to take on Goliath. This time in the name of Air Uganda. We can only hold our breath and hope not to turn blue!
Air Uganda is a consortium that is made up of Aga Khan Development Network and the meridian airlines group from Italy. This is clearly a total departure form the amateurish attempts of the East African airlines and the VIA to take on Goliath (Kenya Airways). This is a well heeled, monied and managerialy experienced outfit, which they have to be because KQ takes no prisoners.
The Nairobi-Entebbe route is undoubtably one of the most profitable in the world, from an airlines point of view. And the most unbelievably expensive route if you are a passenger. After all its just a 45 minute hop, so why on earth do you have to pay $350 for a return ticket. You can almost get to Dubai with that and that is a 5 hour flight!!!!!!
The answer comes in one word, MONOPOLY. KQ is king on this route and if you dont like it catch the bus. They can afford to undercut competitors just top put them out of business and then raise the price again. They have doen that so many times.
Thats why Air Uganda is a different kettle of fish, its backers have deep pockets and are aware of the lurking dangers of this bare knucled fight. But they have public goodwill and they also have a KQ straining under the load of too many passengers and too few planes, they are victims of their own success and passenger service is going down hill, delays are a fact of every day life.
We thus can only look forward to having more compettition and hence better pricing on the Nbi-Ebb route.....afterall we do deserve it.
But then again, is a duopoly really a competitive environment. What stops these two chaps having a coffee break together and fixing the prices...........Yes it can happen, so we watch and wait.
