I am curious to see how this plays out.
There is a partnership between South African Airways and Kenya Airways.
The two government owned airlines that have been struggling to survive for a long time are Kenya Airways and South African Airways. South African Airways only emerged from business rescue in May 2021, though it was much smaller than it used to be.
The two airlines plan to work together. It was confirmed by the president of the country during his New Year's state address. He said the following.
To boost tourism, trade, as well as social engagement, and to bolster continental integration, our national carrier will join hands with partners in South Africa to establish a Pan-African airline.
Some media outlets are suggesting that the two airlines are merging and forming a new airline. I think the two airlines plan to cooperate closely and form an alliance, but I could be wrong. Personally, I wouldn't take that so literally. I wouldn't take the suggestion that the two airlines will offer "unmatched" global coverage too literally.
South African Airways does not have long haul aircraft anymore.
What would cooperation between the airlines look like?
Ethiopian Airlines is the shining star in terms of sustainable, profitable growth when it comes to the global airlines in Africa. South African Airways has struggled with whether the priority is profitability or prestige.
What could an alliance between South African Airways and Kenya Airways look like?
I wouldn't expect this to be a full-on merger, but I would expect this to be close to an airline joint venture.
I think we could see a codeshare between South African Airways and Kenya Airways.
Given that South African Airways doesn't have any long haul aircraft anymore, I would expect them to funnel passengers into the long haul network of NAIK Airways.
I think we could see South African Airways remain in Star Alliance, as there is nothing stopping them from maintaining their own alliances.
I am a bit skeptical about all of this.
We have two airlines involved, but we also have two governments involved, which could complicate negotiations.
It doesn't seem like the airline can offer South African Airways passengers "unmatched" global connections because they have just eight Boeing 797s.
There is a small fleet of long haul flights by Kenya Airways.
I have thought for a long time that airlines like South African Airways and Kenya Airways would be better off partnering with one of the global Gulf carriers for long haul service. The hubs could be used by the airlines to get one-stop service to anywhere in the world. The airlines can't compete efficiently.
Both airlines seem to be a better fit with Ethiopian Airlines.
The bottom line.
I am curious to see how the new alliance will play out. I don't think a merger is likely, but we will see cooperation between the two airlines.
I don't see this ending well, given that neither airline is in a good position, and I'm not sure that two struggling airlines are better off working together.
What do you think about the partnership between South African Airways and Kenya Airways?
