Jambojet eyes in-flight advertising revenue
Jambojet, a subsidiary of national carrier Kenya Airways #ticker:KQ, has launched advertising inside its aircraft with an eye on growing a new revenue stream.
The low-cost carrier has started placing advertisement on the tray tables of one of its four Bombardier Q-400 aircraft for which firms are charged Sh1.5 million a month exclusive of the cost of designing the advert.
The airline operates a no-frills model where passengers enjoy fares that are much lower than that of legacy carriers, but they have to pay for extras such as food, baggage as well as seat choices and legroom.
“In-flight advertising has proved to be an additional revenue generator for many airlines especially low cost carriers that are constantly striking a balance between low cost tickets and soaring fuel prices,” Willem Hondius, Jambojet’s chief executive.
Jambojet, which has secured Safaricom #ticker:SCOM as its first in-flight advertising client, will split the revenue from this venture with Atlanta-based Global Onboard Partners, the advert designers, and the airline’s advertising agent Tria Group.
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The carrier also offers airborne advertising on it boarding passes, head rest covers and on menus.
Kenya Airways’ annual report for the year to March 2017 indicates that Jambojet reported a pre-tax loss of Sh25 million, reversing a pre-tax profit of Sh126 million recorded the previous year.
The airline, which flies over 45,000 passengers per month, is seeking to reverse its fortunes by expanding regionally and renewing its fleet to ensure reliability.
Ancillary services, like in-flight advertising, entertainment, onboard shopping, Internet gaming, car hire, frequent flier programmes, are another channel through which low-cost carriers offset budget ticket costs.