The deal between Kenya and South African Airways was struck after President Uhuru Kenyatta visited South Africa on a two-day tour. The Pan-African Airline will start in 2023 & is expected to grow passenger traffic, cargo opportunities, & general trade. Kenya Airways stated that this is not a merger but a partnership attempting to reorganize both airlines’ assets to enable both countries’ aviation sectors to be more competitive.
The partnership aims to enhance tourism, social engagement and enable continental & global coverage. It is expected that the two countries will have more trade, tourism & aviation sectors and improve the financial feasibility of both airlines.
The two African airlines will work together to take advantage of the strengths in South Africa, Kenya, and Africa. The creation of the Pan-African Airline will enable continental integration and allow customers advantage of more competitive price offerings for both passenger and cargo segments.
KQ chairman Michael Joseph stated that the partnership aligns with Kenya Airways’ purpose of contributing to Africa’s sustainable development based on mutual benefits. South African Airways is part of Star Alliance, the biggest international alliance of airlines, and Kenya Airways belongs to SkyTeam, experienced enormous losses over the past two years. Both airlines anticipate that the partnership will give them the best chance to generate profit.