This archive report was first published on 27 October 2021.
Thursday, October 28, 2021, marked a significant day in the aviation industry as Kenya Airways and its partners faced accusations of monopolistic alliances.
Kenya Airways, known by its international code KQ, has commercial agreements and joint ventures with Tanzania's Precision Air and Europe's Air France and KLM.
A report by the African Competition Forum (ACF) highlighted the joint venture between Kenya Airways, Precision Air, KLM, and Air France, stating that it has facilitated their market share growth in regional and international markets.
However, the report also noted that there is little to no price competition among members of these joint ventures, making these routes monopolistic in nature.
The study, commissioned to understand the continent's aviation market and address competition concerns, involved regulators from 24 African countries, including Kenya.
The report warned that airline alliances may facilitate cartel behavior among airlines, leading to disadvantages for travelers, such as higher prices and poor quality of services due to limited competition on certain routes or less frequent flights.
Kenya Airways and its partners have expanded their reach through commercial agreements, including code share deals, which allow passengers to book seats on each other's flights.
A code share flight is a flight that is marketed by one carrier and operated by another, providing passengers with a wider choice of destinations.
