Airline tie-up between Kenya and SA: possible risks and rewards

Introducing services in the SA market would be a great addition for Kenya Airways and vice versa. With their hub-based model , cooperation will help to boost the route networks of both airlines across Africa.Many alliances don’t achieve the desired outcome. Examples include KLM-Alitalia and the European Quality Alliance which brought together Air France, SAS and Swissair.

Other studies show that more than 50% of strategic alliances fail due cultural differences, mistrust or poor operational integration. There is hope that this will change. The Single African Air Transport Market, which by November last year had been signed by 35 countries, envisages a sharing of aviation space. This would enable eligible airlines from one African state to fly into another using only a prior notification procedure.Get the Sunday Times Daily app or daily email newsletterA big one is the governance structure, which is the oversight required to make and implement decisions essential to the success of an alliance.

Other factors include trust, transparency and communication about what both airlines do together and what they don’t do together. Establishing trust and ensuring that the airlines understand each other’s goals and objectives and that they are the same are key.A strategic alliance is similar to a marriage. In most cases there is no perfect match. To be successful partnerships must be nurtured and well managed.

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