Loss-making Kenya Airways and South African Airways have revealed that the plans to launch a pan-African airline group will be completed in 2024.
The proposed airline group will have a combined fleet of more than 100 aircraft and will operate under a single Air Operator Certificate (AOC), making it the largest carrier in Africa.
The deal has been delayed for some time now post-Covid-19, as both KQ and South African Airways (SAA) have been riding on privatisation and new investors as a path back to profitability after several years of losses that have left them both heavily indebted.
The move, part of their strategic partnership, aims to enhance connectivity across the continent and support economic growth through increased trade and tourism.
The National Assembly committee on transport has been mulling nationalizing KQ to cushion it from losses.
This comes on the back of record losses of Sh38.26 billion by the airline that saw KQ report its tenth consecutive loss after it completed a decade in the red territory.
“Our estimate is that the Pan African Airline Group will be live towards the end of 2024 or at the very latest in early 2025,” said Kenya Airways CEO, Allan Kilavuka
The partnership will bring together two of the continent’s leading airlines, with a combined network that covers more than 50 destinations in Africa and beyond.
The two airlines have been in discussions about a potential partnership for several years, and the announcement of the pan-African airline group follows months of negotiations.
The move is seen as a strategic response to the challenges facing African aviation, including rising fuel prices, competition from foreign carriers, and a fragmented market.
The partnership between Kenya Airways and South African Airways is expected to leverage the strengths of both airlines, including their respective hubs in Nairobi and Johannesburg.
The two airlines will also work together on areas such as procurement, maintenance, and training, in a bid to improve efficiency and reduce costs.
The launch of the pan-African airline group is expected to create new opportunities for travelers and businesses across the continent. The increased connectivity will enable more seamless travel between destinations and facilitate trade and investment across borders.
It will also provide a boost to tourism, which is a key driver of economic growth in many African countries.
The move is also expected to have a positive impact on the aviation industry in Africa. The continent’s aviation sector has long struggled with high operating costs, limited infrastructure, and regulatory barriers.
The launch of a large pan-African airline group could help to address some of these issues, by driving economies of scale and creating a more competitive market.
The partnership between Kenya Airways and South African Airways is a significant development for the African aviation industry.
It represents a major step forward in efforts to enhance connectivity and support economic growth across the continent. The launch of the pan-African airline group next year will be eagerly anticipated by travelers, businesses, and industry stakeholders alike.