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Kenya Airways proposes state-run structure as airport bid fails

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In May, Kenyan lawmakers rejected the airline’s proposal to operate Jomo Kenyatta International Airport with the state-owned Kenya Airports Authority and are expected to issue alternative proposals.

Tuesday 11, June 2019

Bloomberg) --Kenya Airways Chairman said that is willing to operate under a state-owned holding company after the troubled airline failed in its bid to jointly run the country’s main airport.

Michael Joseph, Kenya Airways Chairman, said that the Kenyan lawmakers’ recommendations could include the partial nationalisation of Kenya Airways.

The airline, which reported a KSH 5.95 billion ($59 million) full-year loss, is proposing a model similar to Emirates Airline and Ethiopian Airlines Enterprise, which operate as units of state-owned holding companies.

Such an arrangement would enable able to double its fleet in five years, added Joseph.

“We need the financial structure to enable us to do that, it might not be cash, it might be the balance sheet which is why the airport deal was very important for us, ” Joseph said.

Kenya Airways, which is 48.9 per cent owned by the government, is also on the hunt for a chief executive officer after Sebastian Mikosz said he would step down before the end of his three-year contract.

TAGS : Kenyan lawmakers, Kenya Airways , Emirates Airline, Ethiopian Airlines Enterprise, Sebastian Mikosz, Jomo Kenyatta International Airport, Kenya Airports Authority

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