‘PERMISSION GRANTED‘ TO MOVE FROM CODE SHARE TO FARE ALIGNMENTS AND REVENUE SHARE
(Posted 17th September 2018)
Kenya’s Competition Authority has granted permission to both Precision Air and major shareholder Kenya Airways to move beyond their present code share arrangements and form a joint venture between them.
Under the exemption now granted can the two airlines, for the next four years, begin to share revenues on joint routes and fix fares for flights between Dar es Salaam and Kilimanjaro to Nairobi, Mombasa and other domestic destinations in Kenya, and of course vice versa. The same applies for joint marketing and sales activities.
Kenya Airways holds over 41 percent of Precision Air which is the only such company quoted on the Dar es Salaam stock exchange with founder Michael Shirima holding close to 43 percent.
Precision Air operates a fleet of ATR 42 and ATR 72 aircraft across Tanzania including Zanzibar and scheduled flights into the heart of the Serengeti but also serves Entebbe and Nairobi. It is the first airline in Tanzania to be certified by IATA under the operational safety audit and has since first certification successfully renewed their safety fitness.