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
01 January 2019 - 19:00
'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.
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