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Kenyan government backs taking over unprofitable Kenya Airways

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The Kenyan government already owns a 48.9 per cent stake of the airline.

Monday 24, June 2019

(Bloomberg) --Kenya’s government is in favour of a proposal by lawmakers to nationalise Kenya Airways after they rejected the airline’s bid to run the nation’s biggest airport.

Sub-Saharan Africa’s third-largest airline, which reported a KSH 5.95 billion ($59 million) full-year loss, has lost market share to regional rivals like Ethiopian Airlines and RwandAir.

Kenya Airways is seeking ways to promote its base in the East African nation’s capital, Nairobi, as a regional hub and return to profitability, even if that means it being nationalised.

The parliamentary transport committee proposed creating a government-owned holding company with four subsidiaries including the carrier and the Jomo Kenyatta International Airport.

The other two units are the state’s Kenya Airports Authority and an aviation college.

The National Assembly is required to adopt the committee’s report before the government can implement it.

 

TAGS : Kenya Airways, Ethiopian Airline, RwandAir, Kenya Airports Authority, aviation college

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