Kenyan airline venture scores 7 year extension
Kenya Airways and its joint venture firm KLM Royal Dutch Airline was given an extension to operate by the Competition Authority. The given extension will last for seven more years.
Due to the nature of competition, an extension should be granted to joint venture firms before operating to remove any reason for accusations of unfair trade practice from rivals. This extension is considered as an exemption to the rules granted by the Competition Authority of Kenya.
With this grant, the joint venture airline carrier will be able to vend prices on their own, provided that they respect the agreed upon terms of routes, schedules, and maximum load.
The joint venture between the two companies was formalized back in 1996. Ever since, the airline has provided services such as flights from Nairobi to Amsterdam and 'code shared' services between the airline networks.
Another perk awarded by the authority involves the venture partners can align and coordinate management activities between them, again with respect to the terms of agreement.