( 3 minutes read)
- Troubled Kenya Airways (KQ) and South African Airways (SAA) have partnered to help each other and signed a memorandum of co-operation aimed at forming a pan-African airline
- The mutual cooperation between the two struggling carriers would help in turning around their fortunes
Troubled Kenya Airways (KQ) and South African Airways (SAA) have partnered to help each other and signed a memorandum of co-operation aimed at forming a pan-African airline. The mutual co-operation between the two struggling carriers would help in turning around their fortunes.
Analysts maintain that KQ and SAA collaboration will enhance customer benefits by availing a larger combined passenger and Cargo network. It will also foster the exchange of expertise, innovation, best practices, and adopting home-grown organic solutions to technical and operational challenges. It is believed that the cooperation between the two airlines will help in demand recovery and other cost containment strategies. This will also aid recovery of both carriers in an increasingly competitive African airline environment, besides helping the
Kenyan and South Africa tourism circuits are poised to recover faster from the Covid-19 impact. KQ made a net loss of Ksh11.48 billion ($104.36 million) in the six months period to June 30, 2021, down from a net loss of 14.32 billion ($130.18 million) in the same period last year. The government has opted to nationalize the carrier by buying out the minority shareholders with hopes of turning around its dwindling fortunes.
SAA emerged from bankruptcy last week, flying its first plane in the last 18 months. Its aircrafts have been grounded since March 2020.The airline had survived for decades on government bailouts and was shedding routes even before the Covid-19 pandemic struck. To salvage the airlines, the government agreed in June to sell a 51 percent stake to a group of investors called the Takatso Consortium. It is expected that there will be a potential injection of US$200 million.
