REVENUE MANAGEMENT

KQ partners with Amadeus in revenue management bid

KQ is the first airline in Africa to implement the new technology.

In Summary

• KQ CEO Sebastian Mkosz said that the new system will enable the airline to predict customer behavior as well as improve flight availability and price offering.

• Mkosz said the adoption of Altéa technology is part of the airline's turnaround strategy to keep growing revenues as well as improving the customer service.

KQ
KQ
Image: COURTESY

Kenya Airways on Wednesday rolled out a new technology by Amadeus that will aid in the airline's revenue management system.

The Altéa Network Revenue Management System is said to increase the overall revenue of the airline by optimizing returns from all flight bookings.

KQ CEO Sebastian Mkosz said that the new system will also enable the airline to predict customer behavior as well as improve flight availability and price offering.

 
 

He said KQ is the first airline in Africa to implement the new technology by Amadeus.

“As the market dynamics and our customer behavioral 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” he said.

Mkosz said the adoption of Altéa technology is part of the airline's turnaround strategy to keep growing revenues as well as improving the customer service

Moreover, the new technology will enable KQ to have the ability to seamlessly maximize on the late high yielding demand but still cater to the early booking traffic whilst remaining competitive.

Maher Koubaa, Executive VP 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 chairman Michael Joseph in November said the airline would need up to $450 million (Sh45 billion) to get operations back to profitability.

Speaking in New York, Joseph expressed his frustrations with regard to the state’s reluctance to act on the national carrier’s recovery as its a national asset.

 

“We need to get rid of the debt at KQ to get a turnaround. A better balance sheet can aid in replacing ageing aircraft,” he said.

He said the cash injection would steer the airline away from the nationalisation process while providing enough resources to grow and improve KQ’s operations.

Kenya Airways reported an Sh8.6 billion net loss for the six months to June 30, more than double the loss reported over the same period in 2019.

According to the listed airline, this was on account of a 15.6 per cent jump in total operating costs to sh61.5 billion up from Sh53.2 billion as two Boeing 787s that had been sub-leased to Oman Air were returned and fuel costs marginally increased by five per cent due to increased flying.

KQ is funded by a consortium of banks holding shares as KQ Lenders Company with 38.1 per cent shares in the company, government 48 per cent, KLM (7.8 per cent), minority shareholders (2.8 per cent), and KQ employees (2.4 per cent).