Kenya Airways and KLM renew exemption from Competition Act for another 7 years

KENYA AIRWAYS AND KLM GET CLEARANCE FROM COMPETITION AUTHORITY

(Posted 07th July 2013)

During the last week did the Kenya Competition Authority delivery its verdict on the application filed by alliance partners Kenya Airways and KLM/Air France, to be given a further exemption of 7 years in coordinating schedules, setting fares and using joint measures to save cost through codeshare agreements, scheduling alignments and where necessary adjusting capacity on the route between Nairobi and Amsterdam, vice versa and beyond.

The application, when filed, was reported here and the grant of a further 7 years has been welcomed by the two SkyTeam partners.

Covered by the grant, other airline competitors cannot now file cases against the two, national airline Kenya Airways and KLM / Air France, related to aligning fares and take other joint action which could otherwise be termed anti competitive.

Kenya Airways and KLM have been in a close partnership since KQ was privatized in 1996 with KLM holding a significant share portion alongside the Government of Kenya. KLM sponsored Kenya Airways to full membership at SkyTeam, one of the world’s leading airline alliances which has benefitted Kenya Airways through codeshare arrangements with a number of partners, opening routes for instant to Seoul, Ho Chi Minh City, a number of Chinese mainland destinations beyond their own gateways in Hong Kong and Guangzhou and to Australia.

Watch this space for regular and breaking news from Eastern Africa’ vibrant aviation industry.

%d bloggers like this: