CAK Orders Fly540 To Halt Flight Operations Over License Expiry

Following the expiration of its operating license, the Competition Authority of Kenya (CAK) served Fly540 with a cease and desist letter.

“Fly540 Limited is hereby directed by the authority to with immediate effect, cease and desist from: Advertising for flight bookings in electronic media, print media and social media or receiving any flight bookings from the public or their representatives,” reads a letter sent to the airline.

“The Authority is aware that your Air Operator Certificate (AOC) expired on September 30 2022 and accordingly you are not authorized to offer services. Equally, we are aware that you have suspended operations at the JKIA terminal 1D/terminal 2 and your offices at Watermark Business Park‚ Karen remains inaccessible to the affected public.”

The CAK has also demanded that the airline refund all payments made by customers to whom it has sold tickets since September 30, 2022, as well as any payments made by customers whose flights were canceled arbitrarily prior to that date.

CAK has given the airline thirty days to implement the refund beginning on and to return to the Authority with proof of compliance by November 30.

“Pursuant to the provisions of Section 37 of the Act, Fly540 Limited is hereby directed by the authority to with immediate effect, cease and desist from: Advertising for flight bookings in electronic media, print media and social media or receiving any flight bookings from the public or their representatives and or in any other way holding yourselves as being in a position to offer flight and related services to customers to and from any of the airports within the Republic of Kenya until the ongoing investigations are completed,” the letter reads in part.

The CAK listed an increasing number of consumer complaints against the airline, such as arbitrary and/or short notices of flight cancellations, excessive delays in refunding customers, and false and misleading information about the airline’s ability to provide air transport services to passengers.

CAK also stated that despite issuing a warning on July 29 requiring Fly540 to comply with the Act and the Competition (General) Rules, 2019, and emphasizing the consequences of doing so again, the Authority has continued to receive consumer complaints.