This archive report was first published on 28 September 2021.
On September 28, 2021, Kenya Airways and South African Airways signed a memorandum of cooperation to form a pan-African airline, marking a significant step towards their financial turnaround.
The partnership, aimed at enhancing customer benefits and fostering the exchange of expertise, innovation, and best practices, is expected to boost the airlines' revenues and help them overcome the challenges of the aviation industry.
Kenya Airways CEO Allan Kilavuka stated that the mutual cooperation between the two struggling carriers would help in turning around their fortunes, citing the importance of cooperation in the future of aviation.
“The future of aviation and its long-term sustenance is hinged on co-operation. KQ and SAA collaboration will enhance customer benefits by availing a larger combined passenger and Cargo network, fostering the exchange of expertise, innovation, best practice, and adopting home-grown organic solutions to technical and operational challenges,’’ said Mr Kilavuka.
South African Airways' interim Chief Executive Thomas Kgokolo added that the cooperation between the two airlines would aid recovery of both carriers in an increasingly competitive African airline 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.
Kenya Airways, which has forecast a grim full-year performance due to the effects of the Covid-19 pandemic, 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.
South Africa's embattled national carrier, SAA, emerged from bankruptcy last week, flying its first plane in the last 18 months, and has not been operating flights since March 2020.
