Kenya Airways and Etihad Airways to increase geographical footprint with a landmark code sharing agreement

In Africa, Airlines by Simon Crompton-ReidLeave a Comment

 

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Etihad Airways is to expand significantly its reach across Africa after signing a strategic commercial partnership agreement with Kenya Airways, the national flag carrier of Kenya.

Etihad Airways will place its EY code on Kenya Airways flights from Nairobi to 27 destinations across Kenya Airways' network in Africa. 
As part of the reciprocal codeshare agreement, Kenya Airways will place its KQ code on Etihad Airways' daily service from Nairobi to Abu Dhabi and, subject to government approval, onwards to up to 32 key destinations across Etihad's global network.

Kenya Airways will also launch a new three times a week service between Nairobi and Abu Dhabi from mid-summer 2013. This will give passengers improved connections and greater choice.
The agreement paves the way for greater collaboration between the airlines on the joint procurement of services for ground handling, line and heavy maintenance, training and cargo operations. 
James Hogan, Etihad Airways president and chief executive officer, said: "The partnership agreement with Kenya Airways is in line with our strategy of forming alliances with airlines around the world to enhance our network and marketing reach. This agreement will also allow both airlines to benefit from cost savings achieved through synergies and economies of scale

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here are my views on code sharing

Advantage

  • profit maximization for the airline
  • customer might get an easy travel path i.e baggage is only collected at final destination
  • If airlines are flying on the same route code sharing provides an increase in frequency

Disadvantages

  • Code sharing has the potential to weaken the brand equity of on of the partnering airline. especially if there is a gap in  customer experience
  • Customers are not well educated on code sharing  so when connecting at airports things might not be as easy as expected.

 

 

The Aviation Outlook Africa conference will be happening on the 25-26 June 2013. It will be bringing together airlines, airports and all commercial aviation stakeholders together to discuss the pros and cons of code sharing and other important issues affecting African Aviation To get more information email Tendi at Tendekayi.Mutandagayi@terrapinn.com

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