Company officials met Kenyan lawmakers to discuss their proposal to create a unit to operate Jomo Kenyatta International Airport in Nairobi under a three-decade concession.
Wednesday 10, April 2019
(Bloomberg) --Kenya Airways said it will be profitable within four years if the government approves its proposal to replace the airports authority as operator of the East African nation’s aviation hub.
In a statement, the Sub-Saharan Africa’s third-biggest carrier by passenger traffic will expects $2 billion net income as revenue surges in 2022. That compares with revenue of KES 110.8 billion ($1.1 billion) and a record loss of KES 26.2 billion in the 12 months through March 2016.
Kenya Airports Authority, the current operator, will receive annual fees under the deal.
“The proposed business model where the national aviation hub is run under the same group structure with the national airline has proven successful in other countries such as Ethiopia and the UAE.” Kenya Airlines said.
The airline said that it’s less competitive partly because it pays fees to the airports authority and the government, which its rivals do not at their hubs. It warned that if its performance further deteriorates, it will affect operations of the airports agency that derives most of its revenue from the carrier.
The proposed venture is aimed at achieving profitability, and in the long run, ability to generate profit before tax and dividends for its shareholders.
Kenya Airways is 48.9 per cent owned by the government.