Kenya Airlines CEO Alan Kirabuka says airline partnerships are key to unlocking the potential of aviation on the continent, as airlines seek capital injections.
He spoke to journalists on Monday in Alan Kirabuka, the capital of Nairobi, Kenya, to help raise revenue and unlock the potential of aviation on the continent, with wider cooperation and collaboration between African Airlines.
Competition in the global market
“African airlines are very few compared to their global peers, so they need to work together rather than compete to ensure profitability,” Kirabuka said.
He added that when compared to European, US or Asian airlines, most African airlines “operate with a limited fleet and fight profitability.”
“That's why we need to integrate. Stop fighting each other and focus on building alliances that will help us grow.”
Kenya's flag carrier has already launched a platform known as the Pan African Air Group. Kenya Airlines, which was proposed as a joint venture between Kenya Airlines and South African Airlines, is currently seeking partners from other African airlines as SAA “want to slow down the process.” Early this year Kenyan Career has signed a codeshare agreement with Safarilink Add 9 new Safari destinations to your network.
Kilavuka said the strategic partnership will allow airlines to combine resources such as maintenance facilities, training programs and fuel supply to ultimately reduce unit costs of operational units. This will help reduce passenger fares.
Emphasizing that high cost of air travel and high operating costs are a major challenge for the continental aviation sector, Kirabuka also argued that it was time for African airlines to work together to provide more affordable and accessible flight options to change this narrative.
With a report released earlier this year and titled “The Value of Air Transport to Kenya,” the International Air Transport Association (IATA) highlights the immeasurable strength of Kenya's thriving aviation sector, contributing the contribution of KSH425 ($3.3 billion) to African countries' GDP and supporting the employment of 460,000 people.
Are there investment contracts at the Kenya Airlines table?
According to the report KBC Business and Kenya Airlines are also actively pursuing strategic investors Inject fresh capital into airlines as it targets major fleet expansion and operational stability by 2030.
Kirabuka confirmed on Monday that it expects transactions to be finalised by the end of the year, saying capital injection is important to expand the airline's fleet to more than 60 aircraft over the next five years.
The airline began searching for investors in early 2024, but has since been plagued by changes in regulations, supply chain disruptions, local conflicts and surges in material costs, affecting delays in maintenance schedules and delivery times.
“Additional capital will help strengthen operations and address current capacity gaps,” concluded Kirabuka. Three of the airline's nine Boeing 787 Dreamliner are currently on site while awaiting maintenance and engine overhaul.
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