The two companies are currently working on the completion of their restructuring plans and are examining the terms of setting up a joint venture. The discussions would be very advanced according to the information which leaked in the international economic press. This is not a merger project but the creation of an equal joint venture where each party will retain full freedom to forge commercial alliances with other carriers in the world..
Kenya Airways and South African Airways were to finalize plans to establish a pan-African airline in 2024, Business Daily reported on Monday March 27, citing a spokesperson for the Kenyan carrier. “Both airlines are finalizing their restructuring plans which are expected to be completed by 2024. The restructuring is an important process which, when finalized, will lead to the formation of the pan-African air carrier in 2024,” Kenya Airways management said. The company has also indicated that it is examining the modalities of setting up the joint venture with South African Airways.
Plans to create a pan-African carrier owned by Kenya Airways and South African Airways were first mooted regarding three years ago. The two companies then signed a strategic partnership agreement in November 2021, which marks a step forward in this project. The novelty is the precision of the chronogram.
The creation of a pan-African company should open up new opportunities for Kenya Airways and South African Airways in terms of passenger and freight traffic. It would also enable these carriers in financial difficulty to reduce their operational costs by pooling maintenance, training and supply expenses.
