Troubled Air Mauritius, SA Airways Kenya Air, RwandAir talk co-op
SOUTH African Airways, Kenya Airways, Air Mauritius and RwandAir are in talks to create an alliance, in the face of mounting competition, reports Bloomberg
SOUTH African Airways, Kenya Airways, Air Mauritius and RwandAir are in talks to create an alliance, in the face of mounting competition, reports Bloomberg.
'In a highly competitive environment, an alliance would allow partners to create a consolidated network to offer better choice and flexibility,' said Air Mauritius CEO Somas Appavou.
The talks come at a time when Kenya Airways is going through a restructuring after reporting loses for three consecutive years.
In 2017, the Kenyan government and lenders agreed to convert US$405.3 million owed by the carrier into equity, giving the state the controlling interest. Last month, Air Mauritius reported a first-half loss of $20.2 million.
South African Airways received an unsolicited $1.4 billion loan offer in return for a 51 per cent stake in the cash-strapped state-owned carrier, City Press reported.
RwandAir is prioritising 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.