Audio By Carbonatix
South African Airways, Kenya Airways Plc, Air Mauritius Ltd. and RwandAir are in talks to create an alliance, as they face mounting competition.
“Air Mauritius took the initiative to join forces with three other African airlines in a bid to create an alliance that would develop air connectivity in the region,” Chief Executive Officer Somas Appavou said Wednesday. “In a highly competitive environment, this alliance would allow the potential partners to create a consolidated network using the individual strength of each airline to offer passenger better choice and flexibility.”
The talks come at a time when Kenya Airways is going through a restructuring after reporting loses for three consecutive years.
In November 2017, the Kenyan government and lenders agreed to convert $405.3 million owed by the carrier into equity, giving the state a controlling stake and diluting other shareholders, including Air France-KLM. Last month, Air Mauritius reported a first-half loss of 17.7 million euros ($20.2 million).
South African Airways received an unsolicited 21 billion-rand ($1.4 billion) loan offer in return for a 51 percent stake in the cash-strapped state-owned carrier, City Press reported Dec. 23.
RwandAir is prioritizing adding new routes and overhauling its existing fleet over short-term profitability as the state-owned airline focuses on supporting the country’s growing tourism industry.
“As an alliance, the partner airlines would also benefit from synergies in areas like maintenance, knowledge sharing and training while they will also have an edge in procurement activities,” Appavou said in response to questions.
Latest Stories
-
Mobile tech to add $290bn to Africa’s economy by 2030, GSMA says
1 hour -
South Africa’s Ramaphosa warns against scapegoating migrants for economic woes
1 hour -
Oil prices fall 5% to 3-month low on hopes Strait of Hormuz will open
1 hour -
Prince George to attend Eton College from September
2 hours -
Cadbury chocolate-owner Mondelez defends staying in Russia
2 hours -
‘We fear for our lives’ – deadline for migrants to leave South Africa looms
2 hours -
Hungary’s MPs block return of Orbán, limiting rule of PM to eight years
2 hours -
Hundreds of cats stolen for food in Vietnam rescued by police, welfare group says
2 hours -
Brazil convicts Jair Bolsonaro’s son of pursuing US help in father’s legal battle
2 hours -
Musk’s SpaceX overtakes Amazon to become world’s fifth most valuable firm
3 hours -
2026 World Cup: What would Ghana lose without Thomas Partey against Panama?
3 hours -
German broadcaster removes TV intro after Elon Musk takes legal action
3 hours -
Haaland scored twice on World Cup debut as Norway beat Iraq
3 hours -
Spurs agree ÂŁ52m Van Hecke deal with Brighton
3 hours -
World Cup: The VAR call that dumbfounded the world’s best referees
3 hours