Kenya Airways has requested an exemption from the country’s competition law for a joint venture with Tanzanian airline Precision Air – in which Kenya Airlines is the second-largest shareholder with a 41.23% stake.
Kenya Airways needs regulatory approval to be able to discuss revenue sharing, price setting, route schedules, sales and marketing on the two airline’s joint venture routes in Kenya and Tanzania.
The two carriers already have a code-sharing agreement on the Nairobi-Dar es Salaam route. They have now applied to be exempted from competition regulations until April 2022.
Although competition laws forbid collusion to set prices, the law also allows companies to apply for exemptions. The Competition Authority gave the public 30 days to submit opinions on the proposal.