Anatomy of a merger
When Daallo Airlines called in Dubai-based consultancy Aerotask for a bit of business advice, neither side realised the job would culminate in the merger of the airline with local rival Jubba Airways fewer than six months later. Victoria Moores reports.
But the two airlines were coming under increasing external pressure, with carriers like Flydubai launching operations to Daallo and Jubba’s Mogadishu hub. “It was quite clear this was what they had to do,” Watts said. “Their primary market from Dubai to Somalia was getting really diluted by these carriers, so they needed to shift their focus from Dubai to intra-Somalia. Nobody else can do the domestic feed around Somalia and connect it to Dubai like they do, so they needed to work together.”
However, for the time being they have their hands full. “The merger is a lot of work. I think it will take them a couple of years to sort out their new culture, processes and systems. This is too much work to do all at once. The legalities may have been finalised, but the work of getting everyone on the same page is a long process,” said Watts.
Stay up to date
Subscribe to the free Times Aerospace newsletter and receive the latest content every week. We'll never share your email address.