This archive report was first published on 28 October 2021.
Published on October 28, 2021, a report by Africa's regulatory agencies has accused Kenya Airways and its partners of engaging in commercial collaborations that amount to monopolistic practices on the routes they control.
Kenya Airways has commercial agreements and joint ventures with Tanzania's Precision Air and Europe's Air France and KLM, which have facilitated their market share growth in the respective regional and international markets.
According to the report by the African Competition Forum (ACF), 'there is little to no price competition among members of these joint ventures. Therefore, these routes are monopolistic in nature.'
The cross-country airlines study was commissioned to understand the continent's aviation market and address competition concerns, with regulators representing a total of 24 African countries including Kenya participating in the initiative.
The report warns that airline alliances may help to facilitate cartel behavior among carriers to the detriment of consumers, creating disadvantages 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 codeshare deals, which allow passengers to book flights on one airline while the flight is operated by another.
Codeshare flights come about as a result of agreements between airlines to sell seats on each other's flights in order to provide passengers with a wider choice of destinations.
