Kenya Airways could merge with the Kenya Airports Authority

By professo

Kenya’s national carrier, Kenya Airways (KQ), may soon be merging with the Kenya Airports Authority (KAA) as part of a recovery plan for the struggling airline.

The strategy aims to deepen KQ’s recovery and reposition Nairobi as a transport hub for the region.

The plan is outlined in a policy paper, dubbed Project Simba, that received approval from the Cabinet on 29 May, reported by Business Daily.

The policy suggests that a public-private partnership (PPP) could be signed by September, allowing KQ to take over staff at the KAA to expand the range of services.

SEE ALSO:

These services would include ground handling, maintenance, catering, warehousing and cargo.

KG aims to reposition itself inline with its main rivals, Ethiopia Airlines and Emirates Group, through government backing.

The strategy also aims to financially aid KQ, which has struggled despite the completion of a major financial reengineering drive that took place last year.

“Should matters remain in the current state, KQ, the biggest revenue driver for JKIA [Jomo Kenyatta International Airport], may collapse or significantly reduce operations within the next year and JKIA will downgrade and eventually be relegated to the status of a regional airport as no foreign carrier will develop JKIA for the benefit of Kenya,” stated KQ and the KAA in Project Simba.

Share

Featured Articles

Top 10 most innovative telecom operators in the Middle East

With Dubai-based Telecoms World Middle East in full swing, we chart the most innovative telcos from the region – and look at how they are transforming

Top 10 fastest-growing Indian companies in the UK

Business Chief takes a look at the top 10 fastest-growing Indian companies in the UK, according to the India Meets Britain Tracker from Grant Thornton

Top 10 workplaces prioritising people and planet in the UAE

Sustainable, flexible, collaborative, tech-driven, and amenities-rich, the office of the future considers both people and planet – here are 10 in the UAE

Top 10 female HR execs leading Saudi’s workplace transition

Leadership & Strategy

Top 10 largest asset managers by AUM operating in the UAE

Corporate Finance

Top 10 female CEOs leading Africa’s biggest businesses

Leadership & Strategy