Kenya Airways will be split in bid to return to profitability – ZAWYA
President William Ruto is working with airline and other players to restructure the carrier
A state-initiated restructuring plan will split Kenya Airways into multiple subsidiaries to swing the airline into profitability, Business Daily newspaper reported.
Roads, Transport and Public Works Cabinet Secretary nominee Kipchumba Murkomen said President William Ruto was working with Kenya Airways and other players to restructure the airline.
The national carrier has received multi-billion shilling bailouts amid delayed travel recovery following Covid-19.
“We intend to create subsidiaries in Kenya Airways. We need to have a passenger airline, cargo airline and charter airline,” he said, adding the airline will have other businesses such as drone and surveying services.
The airline’s passenger service reported an operating loss of 4.5 billion Shillings ($37.16 million), cargo (74 billion Shillings) and handling (166 million Shillings).
Murkomen said that the government would not convert its debts or bailout cash into shares, as it wants the airline to remain a privately owned company.
Kenya Airways recorded a ninth consecutive half-year loss, losing 15 billion Shillings, the newspaper said.
(Editing by Seban Scaria seban.scaria@lseg.com)
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© ZAWYA 2022
