Kenya Airways (KQ) and the South African Airways (SAA) have now officially announced the formation of a partnership, Pan-African Airline, to commence next year. This follows much anticipation of the process of the partnership formation overtime given the plan was first mooted three years ago.
According to the national carriers, the two airlines are implementing phase two of the partnership framework. This phase involves putting modalities in place for a joint venture and formalization of the partnership, which will be followed by actualization of their operations.
Additionally, the airlines are undergoing restructuring which include fleet rationalization comprising of talks with the lessors on a lease agreement.
“Both airlines are finalizing their restructuring plans which should be completed by 2024. The restructuring is an important process which once finalized will lead to the formation of the Pan-African Airline Group in 2024,” said KQ.
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The partnership, which was signed in 2021 in the presence of President Cyril Ramaphosa and former president Uhuru Kenyatta, is set to have a number of benefits. One, the partnership will increase connectivity through passenger traffic and two, it will offer affordable flying fares and more alternatives routes of flying.
Notably, the partnership will be implemented at a time when both the airways are grappling with financial challenges. SAA downscaled significantly since it resumed flying after the Covid pandemic. Consequently, KQ has reported that their profits for the FY’ 2022 will decline by at least 25.0%.
The move will see both the airways improve their operations and increase profits given that the national carriers has granted rights to operate cargo from Johannesburg to Lusaka, Maputo, Harare, Lilongwe and Dar-es-Salaam.
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