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Home Business Aviation

Kenya Airways, South African Airways to form pan-African airline group

4 years ago
in Aviation, highlights, Home, home-news, latest News, Markets
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Kenya Airways, South African Airways to form pan-African airline group

South African Airways (SAA) and Kenya Airways (KQ) have signed a cooperation agreement with a long-term view to create a pan-African airline group, the two companies said on Tuesday.

“It is not a merger but a partnership that seeks to re-organise KQ and SAA assets into an ecosystem that will make the South African and Kenyan aviation sector more competitive,” Kenya Airways said in a statement.

SAA said in a separate statement that the pact did not preclude either firm from pursuing commercial cooperation with other carriers and said collaborating would help contain costs.

Must Read: Cedi ranked 9th among Africa’s top 15 currencies

State-owned SAA restarted domestic flights last week and this week launches a scaled-down international service to five African capitals after its longstanding financial woes were exacerbated by the COVID-19 pandemic.

It exited administration in April thanks to another state bailout, and the government has said it will sell a 51% stake in the airline to a local consortium.

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Kenya Airways’ passenger business has also been severely constrained by COVID-19, and it has focused on cargo to minimise losses.

Kenya has plans to renationalise the airline, whose code-share agreement with Air France-KLM for Africa-Europe routes ends this month.

Source: reuters
Via: norvanreports
Tags: Air France-KLMCOVID-19 pandemic.South African Airways and Kenya Airways partner to create a pan-African airline group
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