Companies

KQ eyes Dar nod for new joint venture

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A KQ plane at the JKIA in Nairobi. file photo | nmg

National carrier Kenya Airways #ticker:KQ has applied to the Tanzanian competition watchdog to allow it to expand its joint venture (JV) agreement with KLM to include Air France.

The Fair Competition Commission (FCC) has invited parties opposed to the enhanced merger to submit their views.

KQ operates flights to Mwanza, Kilimanjaro and Dar es Salaam cities in Tanzania while KLM, which merged with the national carrier in 2004, flies to Kilimanjaro and Dar es Salaam from Amsterdam.

The FCC’s notice is similar to one issued by the Competition Authority of Kenya (CAK) in last week’s Kenya Gazette, inviting parties to send submissions before February 13 to enable it to make a decision on the JV amendment application.

READ: KQ applies to include Air France in KLM deal

“The FCC has received a notification of an exemption to an agreement between KQ, KLM and Air France on airline business.

“The FCC is currently investigating the intended agreement,” the agency said in its notice.

The revised JV will allow the three carriers to co-operate on several commercial points including marketing and sales activities, align and coordinate pricing of tickets as well as the exchange of staff in select areas.