Kenya's national carrier, Kenya Airways (KQ), announced in Nairobi on Friday it will introduce new flights to Shanghai this August to tap into China's US$15.4 billion tourism market.

The KQ Managing Director Titus Naikuni told Xinhua in Nairobi that the airline is finalizing a bilateral service agreement between Kenya and China to give KQ the go-ahead to start flights to China later this year.

However, Naikuni said the new flights are subject to obtaining confirmation of the operating license approvals and slots at Shanghai airport.

Kenya Airways announced on Friday it has recorded the highest profit in its history after its annual after-tax profit tripled to 3.8 billion shillings (US$50 million) from 1.3 billion (US$17 million) due to cost-cutting and an increase in passengers.

Naikuni said the airline was encouraged by the Chinese government's cooperation, adding that they have obtained permission and was only waiting for the operating license to start the flights.

"We are optimistic and have been encouraged by the support from the Civil Aviation Authority of China (CAAC) at the recent bilateral discussions in Beijing. They have given us permission and is currently waiting for the license to introduce the new flights," Naikuni said.

The planned China route comes just months after China granted Kenya approved destination status (ADS) last December.

Naikuni said the ADS is a boost to the east African nation's tourism sector as the number of Chinese tourists visiting Kenya is expected to increase sharply.

Kenya Airways' venture into Chinese skies is strategic as it positions the airline to take advantage of the growing number of Chinese tourists to Kenya and other African countries, he said.

In September 2003, KQ launched flights to Hong Kong and Bangkok, routes that have since registered remarkable performance.

According to KQ's trading results released here Friday, the Middle East and Asia registered a higher growth in passenger uptake after European regions.

Sources within the airline said the decision to venture into the Far East is largely driven by the tourism potential in that region, which translates into increased business for the airline.

According to the World Tourism Organization rankings in 2003, China was seventh in the world's top spenders, with US$15.4 billion having been spent on international tourism.

As of November last year, China's aviation traffic peaked at 16.37 million passengers.

(Xinhua News Agency May 28, 2005)