This article summarizes reporting by AFRAA and official statements from Kenya Airways.

Kenya Airways Advances Plans for Secondary Hub in Accra Under ‘Project Kifaru’

Kenya Airways (KQ) is moving forward with strategic plans to establish a secondary operational hub at Kotoka International Airport (ACC) in Accra, Ghana. According to reporting by the African Airlines Association (AFRAA) and recent company statements, this initiative represents a critical pillar of “Project Kifaru,” the airlines‘s three-year recovery and growth roadmap.

The proposed expansion aims to deepen intra-African connectivity by positioning Accra as a pivotal node for West African operations. Rather than launching a wholly-owned subsidiary, a model that requires heavy capital expenditure, Kenya Airways intends to utilize a partnership-driven approach, leveraging existing relationships with regional carriers to feed long-haul networks.

While the Kenyan government formally requested permission for the hub in May 2025, Kenya Airways CEO Allan Kilavuka confirmed in December 2025 that the plan remains under active study. A final decision on the full execution of the project is expected in 2026.

Operational Strategy: The ‘Mini-Hub’ Model

The core of the Accra strategy involves basing aircraft directly in West Africa to serve high-demand regional routes. According to details emerging from the planning phase, Kenya Airways intends to deploy three Embraer E190-E1 aircraft to Kotoka International Airport. These aircraft will facilitate regional connections, feeding passengers into the carrier’s long-haul network and supporting the logistics needs of the region.

This operational shift marks a departure from the traditional “hub-and-spoke” model centered exclusively on Nairobi. By establishing a presence in Ghana, KQ aims to capture traffic in a market currently dominated by competitors such as Ethiopian Airlines (via its ASKY partner in Lomé) and Air Côte d’Ivoire.

Partnership with Africa World Airlines

A key component of this strategy is the airline’s collaboration with Ghana-based Africa World Airlines (AWA). Kenya Airways signed a codeshare agreement with AWA in May 2022. This partnership allows KQ to connect passengers from its Nairobi-Accra service to AWA’s domestic and regional network, covering destinations like Kumasi, Takoradi, Lagos, and Abuja.

Industry observers note that this “capital-light” model reduces the financial risks associated with starting a new airline from scratch. Instead of competing directly on every thin route, KQ can rely on AWA to provide feed traffic while focusing its own metal on key trunk routes.

Financial Context and ‘Project Kifaru’

The push for a West African hub comes as Kenya Airways navigates a complex financial recovery. The airline reported a significant milestone in the 2024 full financial year, posting an operating profit of Ksh 10.5 billion and a net profit of Ksh 5.4 billion, its first profit in 11 years. This resurgence provided the initial confidence to pursue the growth phase of Project Kifaru.

However, the first half of 2025 presented renewed challenges. The airline reported a Ksh 12.2 billion loss for the period, attributed largely to currency volatility and the grounding of its Boeing 787 fleet due to global spare parts shortages. These financial realities underscore the necessity of the proposed low-capital expansion model in Accra.

The strategy focuses on collaboration with existing African carriers rather than creating a new airline from scratch.

, Summary of Kenya Airways’ strategic approach

Regulatory Landscape and Competition

The viability of the Accra hub relies heavily on the Single African Air Transport Market (SAATM) and “Fifth Freedom” rights, which allow an airline to fly between two foreign countries. West Africa has been a leader in implementing these protocols, making Accra a legally feasible location for a secondary hub.

Furthermore, the African Continental Free Trade Area (AfCFTA) secretariat is headquartered in Accra. Kenya Airways is positioning itself to support the trade bloc by facilitating the movement of people and cargo between East and West Africa. The airline has already introduced Boeing 737-800 freighters to serve key destinations including Lagos, Dakar, Freetown, and Monrovia.

AirPro News Analysis

The decision to delay a final “go/no-go” confirmation until 2026 suggests a prudent approach by Kenya Airways management. While the West African market is lucrative, it is also saturated with aggressive competitors like Air Peace and the well-entrenched ASKY/Ethiopian Airlines alliance. By opting for a partnership model with Africa World Airlines rather than a full subsidiary, KQ avoids the “cash burn” trap that led to the collapse of previous pan-African airline ventures. If successful, this could serve as a blueprint for other mid-sized African carriers looking to expand without overleveraging their balance sheets.

Frequently Asked Questions

What aircraft will be based in Accra?
Current plans indicate that Kenya Airways intends to base three Embraer E190-E1 aircraft at Kotoka International Airport.

When will the hub become operational?
While planning is underway and government requests have been filed, a final decision on full execution is not expected until 2026.

How does this affect the Nairobi hub?
Nairobi (Jomo Kenyatta International Airport) remains the primary hub. The Accra facility is designed as a secondary node to improve regional connectivity and feed traffic back into the global network.

Sources

• AFRAA

This article is based on an official press release from Amadeus.

TUI Airline Selected as Launch Customer for Navitaire Stratos Retailing Platform

In a significant move toward modernizing digital travel infrastructure, TUI Airline has been announced as the launch customer for Navitaire Stratos, a next-generation airline retailing platform. According to an official press release from Amadeus, the parent company of Navitaire, this partnership marks a transition from the legacy “New Skies” system to a cloud-native, AI-driven environment designed to facilitate “Offer and Order” management.

The collaboration aims to overhaul TUI’s digital capabilities, moving the leisure carrier away from rigid, traditional ticketing systems toward a flexible, e-commerce model comparable to major online retailers. By adopting Stratos, TUI Airline intends to enhance its ability to sell personalized travel bundles, manage complex itineraries, and integrate third-party ancillaries directly into the booking flow.

The Shift to “Offer and Order” Management

The aviation industry is currently undergoing a technological paradigm shift known as “Offer and Order” management (OOMS). Traditionally, airlines have relied on Passenger Service Systems (PSS) that separate schedules, fares, and ticketing into distinct, often disjointed, databases. This legacy architecture can make modifying bookings, such as adding a hotel room or changing a flight leg, technically complex.

Navitaire Stratos is designed to replace these silos with a unified system. According to the announcement, the platform utilizes open architecture and artificial intelligence to generate dynamic offers. This allows the airline to present a single, comprehensive “order” that includes flights, accommodation, and activities, rather than a collection of disparate tickets and reservation numbers.

The “Amazon-ification” of Booking

One of the standout features of the Stratos platform, as highlighted in the release, is the introduction of shopping cart functionality. While standard in general e-commerce, the ability to add items to a cart, save the session, and return later to complete the purchase is relatively rare in airline booking engines due to the volatility of ticket pricing and inventory.

TUI Airline plans to leverage this feature to reduce friction for leisure travelers. The new system will allow customers to build complex holiday packages over time, saving their progress as they coordinate with family members or travel companions. The platform is also designed to support intelligent upselling, offering relevant add-ons such as baggage upgrades, meals, or car rentals based on specific customer data.

Strategic Partnership and Executive Commentary

TUI Airline, which operates a fleet of over 130 aircraft including Boeing 737 MAX and 787 Dreamliner jets, has maintained a partnership with Navitaire for over two decades. This new agreement represents a deepening of that relationship rather than a new vendor selection. The transition to Stratos is positioned as a critical step in TUI’s digital transformation strategy.

Peter Glade, Chief Commercial Officer at TUI Airline, emphasized the importance of this technological upgrade in the company’s official statement:

“We are on a journey to build the most modern airline commercial set up in the industry. Navitaire Stratos will be a cornerstone of this transformation… It will elevate our retailing capabilities with intelligent recommendations, dynamic offers, and a shopping cart that makes it easy for customers to convert their selections into an order or save them for later.”

Amadeus views this launch as a benchmark for the broader low-cost and hybrid carrier market. Cyril Tetaz, Executive Vice President of Airline Solutions at Amadeus, noted the long-term implications of the project:

“As the group transitions from our New Skies solution, close collaboration on a shared long-term roadmap will ensure business continuity, while helping shape the next-generation Offer and Order solution of reference for low-cost and hybrid carriers.”

AirPro News Analysis

Why Leisure Carriers Lead the Retail Revolution

While legacy network carriers often focus on corporate contracts and frequency, leisure carriers like TUI are uniquely positioned to benefit from the “Offer and Order” revolution. Leisure travel is inherently more complex than point-to-point business travel; it often involves multiple passengers, heavy baggage requirements, and the need for ground transportation or accommodation.

By moving to a cloud-native platform like Stratos, TUI is effectively acknowledging that it is no longer just a transportation provider, but a digital travel retailer. The ability to “save for later” is particularly potent for the leisure market, where the booking window is longer and purchase decisions are often collaborative. If TUI can successfully implement a “shopping cart” experience that mimics Amazon or Uber, they may significantly increase their “share of wallet” by capturing ancillary spend that might otherwise go to third-party aggregators.

Operational Resilience

Beyond retailing, the shift to cloud-native infrastructure offers operational benefits. Legacy PSS platforms are notoriously difficult to update and maintain. A cloud-based system allows for faster deployment of new features and greater resilience during peak traffic periods, critical factors for a holiday airline that experiences extreme seasonal demand spikes.

Sources

• Amadeus Press Release

This article summarizes reporting by Reuters and includes data from official company announcements.

Volaris and Viva Aerobus Agree to Historic “Merger of Equals,” Facing Stiff Antitrust Headwinds

In a move set to reshape the Latin American aviation landscape, Mexico’s two largest low-cost carriers, Volaris and Viva Aerobus, have announced a definitive agreement to merge their holding companies. The transaction, described by the Airlines as a “merger of equals,” aims to consolidate operations under a single financial umbrella while maintaining separate consumer-facing brands. If approved, the combined entity would control approximately 70% of Mexico’s domestic air travel market.

According to reporting by Reuters and subsequent company statements released on December 19, 2025, the deal is structured as a 50-50 ownership split between the existing shareholders of both airlines. The agreement targets a closing date in 2026, though industry observers warn that the path to regulatory approval will be fraught with challenges given the massive market concentration the merger implies.

Structure of the Proposed Deal

The agreement outlines a strategy designed to capture economies of scale without alienating the loyal customer bases of either airline. Under the terms of the deal, Viva Aerobus shareholders will receive newly issued shares in the Volaris holding company. The resulting entity will retain listings on both the Mexican Stock Exchange (BMV) and the New York Stock Exchange (NYSE).

Despite the financial integration, the airlines plan to keep their operations distinct. According to the announcement, both carriers will retain their individual Air Operator Certificates (AOCs), commercial teams, and loyalty programs. This dual-brand strategy allows them to continue targeting their specific market segments while unifying backend logistics.

Leadership and Governance

The governance structure reflects the “merger of equals” philosophy. Roberto Alcántara, the current Chairman of Viva Aerobus, is slated to become the Chairman of the Board for the new group. Meanwhile, the current chief executives will maintain their operational roles:

“Under the new group structure, Viva and Volaris will continue to operate as independent airlines, allowing our passengers to choose their preferred brand.”

, Juan Carlos Zuazua, CEO of Viva Aerobus

Enrique Beltranena will continue to lead Volaris as CEO, while Juan Carlos Zuazua remains at the helm of Viva Aerobus.

Financial Context and Market Reaction

The merger comes at a time when both airlines are navigating significant operational headwinds, primarily driven by global supply chain issues. Both carriers operate all-Airbus fleets and have been heavily impacted by Pratt & Whitney GTF engine inspections, which have grounded portions of their capacity.

p>Despite these challenges, the financial rationale for the merger is rooted in resilience. By combining balance sheets, the airlines hope to weather industry shocks more effectively. Recent financial data highlights the scale of the proposed giant:

• Volaris (Q3 2025): Reported revenue of approximately $784 million and net income of roughly $6 million.
• Viva Aerobus (Q3 2025): Reported revenue of approximately $656 million and net income of roughly $30 million.

Investors reacted positively to the news. Following the announcement, Volaris shares surged between 16% and 20%, signaling market confidence that a consolidated industry could lead to better yield management and profitability.

“We expect the formation of the new airline group will allow us to realize significant growth opportunities for air travel in Mexico, in line with the low fare and point-to-point approach that revolutionized the industry.”

, Enrique Beltranena, CEO of Volaris

Regulatory and Political Hurdles

While the financial logic appears sound to investors, the regulatory landscape presents a formidable barrier. The combined entity would hold a near-duopoly position alongside legacy carrier Aeromexico, controlling an estimated 71% of domestic traffic. This level of concentration far exceeds typical antitrust thresholds in Mexico.

Antitrust Scrutiny

The Federal Economic Competition Commission (COFECE) has historically taken an aggressive stance in the transport sector. In 2019, the regulator sanctioned Aeromexico for collusion, and more recently, it issued findings regarding a lack of effective competition in maritime transport. The merger also faces political uncertainty due to proposed reforms that could replace COFECE with a new National Antitrust Commission (CNA) under the Ministry of Economy, potentially introducing political criteria into the approval process.

AirPro News Analysis

The Efficiency Defense vs. Market Power

We believe the central battleground for this merger will be the “efficiency defense.” Volaris and Viva Aerobus will argue that consolidating backend operations,such as maintenance, fuel purchasing, and fleet negotiations with Airbus,will lower their cost per available seat mile (CASM). Theoretically, these savings could be passed on to consumers in the form of lower fares, fulfilling the “democratization of air travel” mandate both CEOs frequently cite.

However, regulators are likely to view this skepticism. Economic theory and historical data from the Mexican market suggest that when hub dominance exceeds certain thresholds, premiums on ticket prices rise regardless of operational efficiencies. With Aeromexico as the only other major competitor, the incentive to engage in price wars diminishes significantly. Furthermore, the US Department of Transportation (DOT) may view this consolidation as a complication in the ongoing dispute over slot allocations at Mexico City International Airport (AICM), potentially jeopardizing cross-border alliances.

Frequently Asked Questions

Will my Volaris or Viva Aerobus points be combined?
Currently, there are no plans to merge loyalty programs. Both airlines have stated they will maintain separate commercial teams and loyalty schemes.

When will the merger be finalized?
The deal is expected to close in 2026, subject to approval from shareholders and Mexican regulatory bodies.

Will ticket prices go up?
While the airlines argue that efficiency will keep fares low, analysts warn that reduced competition often leads to greater pricing power for airlines, which could result in higher fares on routes where the new group holds a dominant position.

Sources

• Reuters