- Kenya Airways (KQ) and South African Airways (SAA), the two loss-making airlines in Africa have signed a memorandum of co-operation in an attempt to form a pan-African airline.
- Apart from keeping the two carriers afloat, the partnership is expected to improve services giving both a strategic positioning in aviation with diversified revenue streams.
Kenya Airways (KQ) and South African Airways (SAA), the two loss-making airlines in Africa have signed a memorandum of co-operation in an attempt to form a pan-African airline. Apart from keeping the two carriers afloat, the partnership is expected to improve services giving both a strategic positioning in aviation with diversified revenue streams. The collaboration is also expected to enhance mutual growth, boost passenger traffic, increase cargo volumes and general trade.
Both airlines have been loss-making for years. The South African carrier which was severely hit by Covid-19 pandemic restrictions closed commercial flights in March 2020 and grounded all its other flights in September last year due to financial strain. It resumed operations this week after more than a year of inactivity.
There is an increasing belief that the future of aviation and its long-term sustenance depends on cooperation. KQ Managing Director Allan Kilavuka stated that KQ and SAA partnership will offer more customer benefits by way of a larger passenger and cargo network, nurturing and sharing of expertise, innovation, best practice, and adopting indigenous solutions to technical and operational issues. SAA’s Interim CEO Thomas Kgokolo hoped that the collaboration will revive Kenya and South Africa tourism circuits such as Johannesburg, Nairobi and Cape Town. The tourism sector is a key sector for both countries accounting for a major share of the GDP growth.
The MOU emerged after African airlines agreed to adopt a consolidation model at a workshop hosted by African Airlines Association (AFRAA). Another decision was to adopt an “Air Afrique” with equitable partnerships between airlines. The idea of promoting, co-operation between two or more well-matched airlines, or forming a new common airline was also endorsed.
KQ had adopted pursuing partnerships as part of its recovery strategy. Earlier in April, it signed an agreement with Congo Airways to lease two Embraer E190 jets. The objective was to support the Congolese carrier’s domestic operations and flight frequencies.
