Kenya: KQ, SA Airways in Plans to Co-Start Pan-African Airline Group

28 September 2021

Nairobi — Kenya Airways and the South African airlines have signed a co-operation strategic partnership with the ultimate goal of co-starting a Pan-African Airline Group.

The co-operation is among others, aimed at addressing the significant contraction witnessed in the history of the African air transport market which shrunk 50 percent in the wake of COVID-19.

In a statement, KQ noted that the memorandum of cooperation will be based on mutual benefits which seek to see an increase in passenger traffic, cargo opportunities, and general trade by taking advantage of strengths in both countries.

The agreement, however, does not limit either of the airlines from pursuing commercial cooperation with other carriers within the current route network strategy.

"This cooperation will be based on mutual benefits including strategic positioning in global aviation, diversifying

earning streams, and reinforcing regional partnership in Africa through diplomatic and commercial relations," it said,

KQ Chief Executive Officer, Allan Kilavuka said the partnership will play a significant role in the growth of both airlines by enhancing customer benefits through a larger combined passenger and cargo network,

As part of the deal, Kilavuka said both airlines will exchange expertise, innovation, best practice, and adopt home-grown organic solutions to technical and operational challenges

"The future of aviation and its long-term sustenance is hinged on cooperation. KQ remains committed to its financial turnaround strategy. The pursuit of partnerships is one of the core strategic pillars that shall transform the airline by ensuring its financial viability while offering world-class services in Africa and the world.' KQ said.

SAA's Interim CEO Thomas Kgokolo, on his part, noted that the cooperation will aid the recovery of both carriers in the current and post-pandemic business and travel environment.

"It will also enhance related Kenya and South Africa tourism circuits, which sectors account for significant portions of respective country growth domestic product, benefiting from at least two attractive hubs in Johannesburg, Nairobi and possibly Cape Town," he said.

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