Economy

Kenya and Sri Lanka sign air traffic deal

20 Jan 2011 - {{hitsCtrl.values.hits}}

Kenya has opened the way for local airlines to launch direct flights to Colombo, Sri Lanka, after it signed a bilateral air services agreement that allows access to its skies.

Currently, for one to get to Sri Lanka, one has to go through Dubai before getting a connecting flight either directly to Colombo or through India.

“This agreement has laid the framework for direct access to the two economies that offer a combined market of over 60 million people,” said Transport minister Amos Kimunya. “Our airlines can benefit immensely by launching services between the two countries,” he said.

The agreement provides for unrestricted weekly frequencies and code-share arrangements, meaning that two airlines can share the same flight.

For instance, a seat can be purchased on one airline, but is actually operated by a cooperating airline under a different flight number or code from either of the two countries.

“The agreement is expected to open up trade opportunities between our two states especially trade in rubber products, processing and packaging of tea and the textile industry,” said Mr Kimunya.

Trade between the two countries has been in favour of Kenya. Kenya exports to Sri Lanka in 2007 stood at about Sh500 million, with Sri Lanka exporting goods and services worth Sh225 million to Kenya.

The agreement appears to have been targeted at the national carrier Kenya Airways, which has been on the expansion trail.

But on Tuesday, the firm said Sri Lanka was not on their radar, a move supported by the small passenger traffic.

“We don’t have immediate plans of launching flights to Sri Lanka this year,” said Chris Karanja, Kenya Airways corporate communications officer.

Sri Lanka is hoping to use Kenya as an entry point into the East African market and boost its exports that have been in favour of Kenya.

“Kenya is an important getaway into East Africa and we hope to use this agreement to encourage more business into the region,” said Mr J.P. Dissanayake, Sri Lanka high commissioner to Kenya. The country also hopes to strengthen its ties in the region.

“There are a number of Kenyan students who have trained in various Sri Lankan academic institutions through the Commonwealth scholarship scheme and this agreement will make it easier for new students,” said Mr Dissanayake.

Kenya exports to Sri Lanka include natural sodium carbonate, salt and pepper and the airline agreement offers exporters a chance to sell more.

Imports from the Asian country include natural rubber, cocoa and general industrial machinery especially for the export processing zones (EPZs).

businessdailyafrica

Economy

Kenya and Sri Lanka sign air traffic deal

Most Popular Articles

LAUGFS gas prices remain unchanged

New US tariff could erode Sri Lanka’s export competitiveness: CCC warns

CSE slides sharply as Middle East tensions trigger broad-based selling

CSE extends losses as geopolitical risks and tariff concerns weigh on sentiment

CSE rebounds as lower oil prices and strong crossings lift sentiment

Pelwatte Dairy commissions Sri Lanka’s largest dairy effluent treatment plant

Latest News

Over 5,000 Bharatanatyam dancers in Colombo clinch Guinness World record

Court allows Tissa to seek answers from Prime Minister

Special programme launched to help healthcare workers curb tobacco use

Heavy rain expected as El Niño conditions set to develop globally after February: Officials

“LTTE diaspora will not fund Government again, will not vote to bring it back,” Says MP Archchuna