A South African Airways A340 pushing back at Washington Dulles International Airport (Photo: AirlineGeeks) Rhetoric on the need for cooperation between airlines in Africa has never been in short supply, but action has been less forthcoming.
In the current aviation landscape, filled by the emergence of new markets, South African Airways and Kenya Airways are looking to redouble their efforts to remain competitive.
The two loss-making airlines have signed a memorandum of understanding with a longer-term view to co-start a Pan-African Airline Group that will enhance mutual growth potential by taking advantage of strengths of the two airlines’ busy hubs.
SAA’s Interim CEO, Thomas Kgokolo, said, “As well as being a strong local carrier, part of our broader growth strategy is to become a major player in regional travel and this joint memorandum with Kenya Airways, one of the continent’s strongest and most respected carriers, will do just that.
“Part of SAA’s core remit is to be a significant enabler of business and trade in Africa and it’s through a strategic understanding like this that real progress will be made in advancing South Africa and the continent’s growth,” Kgokolo continued.
The memorandum will help improve customer experience by offering a wider range of choices and destinations. The cooperation will also help in the standardization of product and service offering that is in line with current global aviation trends.
Mr. Allan Kilavuka, Kenya Airways’ CEO, highlighted the partnership’s significance in turning around the fortunes of both KQ and SAA: “The future of aviation and its long-term sustenance is hinged on partnership and collaboration. Kenya Airways and South African Airways collaboration will enhance customer benefits by availing a larger combined passenger and Cargo network, fostering the exchange of expertise, innovation, best practices, and adopting home-grown organic solutions to technical and operational challenges’’.
A Kenya Airways Boeing 787-8 at Schiphol Airport. (Photo: AirlineGeeks | James Dinsdale)
“It is not a merger but a partnership that seeks to re-organize 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.
In a context of intense rivalry, the two legacy carrier are facing multiple challenges that include, but are not limited to, high fleet renewal and maintenance costs, advent of new business models and regulatory changes. Since internal growth or competitors’ takeover may be hard, choosing to cooperate with each other makes more sense.
This form of partnership has indeed […]