10 May 2010

Air travel drives Kisumu car hire business

An estimated 360,000 passengers used Kisumu Airport last year, up from less than 100, 000 in 2007. Photo/FILE

By STELLA CHERONO
Car hire business at the Kisumu airport is growing fast following an increase in the number of flights to the town from Nairobi.

Increased business travel, speed and reduced fares have seen an increase in passenger number, leading to more flights and more airlines as travellers relegate road travel for the air.

Air fares on the Nairobi-Kisumu route has dropped by more than half to about Sh5, 000 over the past four years on increased competition between the airlines, Kenya Airways, Fly 540, Jet Link, East African Airlines and ALS, who are currently doing 10 flights, up from two in 2006.

This surge in passenger numbers is what is driving the car hire business in Kisumu as the airbound travellers turn to the road to venture into the surrounding districts of Siaya, Vihiga and Nyando—opening way to a multi million shilling business.

“The car hire business has grown fast over the past three years, from less than 20 cars to more than 100 today,” says Mr Mark Odhiambo who is in charge of Elsuco Tours and travel, adding that the increased number of air passengers is attributed to people preferring fast transport
A spot-check by the Business Daily showed that most clients preferred new and bigger cars such as Pajero and Rav4 whose hire rate is more the Sh4, 000 a day charged for smaller vehicles models.

“Passengers need classy and comfortable cars and for you to get a client, your car has to meet the preferred standards.” said Mr Odhiambo.

Clients prefer to enjoy the comfort of short-term ownership than to hire a taxi driven by a strange driver for security and privacy reasons.

Official data from the Kisumu airport indicate that an estimated 360,000 passengers used the facility last year, up from less than 100, 000 in 2007.

The number is expected to increase substantially with the completion of the airport expansion and upgrading to a world class status.

The expansion programme is expected to be complete by July or August next and the upgraded airport will boast a longer, wider and smoother runway allowing for larger planes to land on it.
The current runway is to be extended from two to three kilometres by the end of construction.
“Kisumu Airport has a lot of potential and once it is finished it will open up major opportunities for the aviation sector as well as business people,” project manager, Mr Philemon Chamwada said in an earlier interview.

Mr Odhiambo said clients are specific in the choice of car model they want to hire, adding that for any car hire business to prosper, the company needs to purchase modern cars.

“Some clients prefer to be driven while others drive the cars by themselves, but we first have to establish that the clients have a valid driving licence.” he said.

Business Daily

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