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    Government to take over running of white elephant SGR

    Mitumba trade employs over 2 million Kenyans new report reveals

    Mitumba trade employs over 2 million Kenyans new report reveals

    3.6 m up for grabs in this years Benjamin Mkapa African Wildlife Photography Awards

    3.6 m up for grabs in this years Benjamin Mkapa African Wildlife Photography Awards

    African Airlines Association call for support measures to rescue continent aviation industry

    African Airlines lost Ksh1 trillion in 2020

    Equity land Ksh16.5 billion loan to support MSMEs

    Equity land Ksh16.5 billion loan to support MSMEs

    KenGen Plans Direct Selling Of Electricity

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    KPA MD Post to be readvertised after interviewees fail to meet threshold

    10% of Kenyans completely unable to service their loans says report

    Employers continue deducting salaries in 2021 due to Covid-19

    17% of All Food Available at Consumer Levels is Wasted Says UN

    17% of All Food Available at Consumer Levels is Wasted Says UN

  • Markets
    Mitumba trade employs over 2 million Kenyans new report reveals

    Mitumba trade employs over 2 million Kenyans new report reveals

    African Airlines Association call for support measures to rescue continent aviation industry

    African Airlines lost Ksh1 trillion in 2020

    Equity land Ksh16.5 billion loan to support MSMEs

    Equity land Ksh16.5 billion loan to support MSMEs

    Electric Boda-Bodas’ Launched in Kenya

    Electric Boda-Bodas’ Launched in Kenya

    World Animal Protection calls for an End to wildlife trade

    World Animal Protection calls for an End to wildlife trade

    JKIA and Moi International Airport named the best in Africa

    JKIA and Moi International Airport named the best in Africa

    tvN – Korea’s top entertainment brand debuts on DSTV

    tvN – Korea’s top entertainment brand debuts on DSTV

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    Samsung Named Top Global TV Manufacturer

    Locally assembled Proton Saga saloon car released to the market  

    Locally assembled Proton Saga saloon car released to the market  

  • Real Estate
    17% of Kenyan Billionaires looking to buy a house in 2021

    17% of Kenyan Billionaires looking to buy a house in 2021

    Kenyan Firm awarded Most Innovative Community Developer 

    #OmokaNaAlma: This is how you get awarded Sh50,000 by Cytonn Real Estate

    Developing Countries Set To Lose Sh22 Trillion Due to COVID-19

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    New Construction Technology to help NHC deliver affordable homes

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    NCBA partners with Shelter Afrique to finance properties in 5 counties

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    New Ksh350Million Commercial centre to be constructed in Athi River

    Greenpark Estate injects Ksh15M to its development

    Greenpark Estate injects Ksh15M to its development

    LG’s OLED Honoured at the Technology and Engineering Awards

    LG’s OLED Honoured at the Technology and Engineering Awards

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    Kenya’s position as a Digital Media Hub gaining momentum

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    Electric Boda-Bodas’ Launched in Kenya

    Electric Boda-Bodas’ Launched in Kenya

    Konza Technopolis, Israel to host Innovation Challenge

    Konza Technopolis, Israel to host Innovation Challenge

    TikTok releases H2 2020 Global Transparency Report

    TikTok releases H2 2020 Global Transparency Report

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    OPPO Announces Global Partnership with Volkswagen

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    IoT predictions for 2021: Smarter tech will make better business

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    World Engineering Day to Be Celebrated in Kenya

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    Kenya to receive Ksh 1 billion from Google for economic recovery

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    Mitumba trade employs over 2 million Kenyans new report reveals

    Mitumba trade employs over 2 million Kenyans new report reveals

    3.6 m up for grabs in this years Benjamin Mkapa African Wildlife Photography Awards

    3.6 m up for grabs in this years Benjamin Mkapa African Wildlife Photography Awards

    African Airlines Association call for support measures to rescue continent aviation industry

    African Airlines lost Ksh1 trillion in 2020

    Equity land Ksh16.5 billion loan to support MSMEs

    Equity land Ksh16.5 billion loan to support MSMEs

    10% of Kenyans completely unable to service their loans says report

    Employers continue deducting salaries in 2021 due to Covid-19

    17% of All Food Available at Consumer Levels is Wasted Says UN

    17% of All Food Available at Consumer Levels is Wasted Says UN

    Electric Boda-Bodas’ Launched in Kenya

    Electric Boda-Bodas’ Launched in Kenya

    World Animal Protection calls for an End to wildlife trade

    World Animal Protection calls for an End to wildlife trade

    Farmers bet on indigenous foods to boost incomes and tackle malnutrition

    Farmers bet on indigenous foods to boost incomes and tackle malnutrition

    • Agribusiness
    • Banking
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Kenyan Business Feed
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  • News

    Government to take over running of white elephant SGR

    Mitumba trade employs over 2 million Kenyans new report reveals

    Mitumba trade employs over 2 million Kenyans new report reveals

    3.6 m up for grabs in this years Benjamin Mkapa African Wildlife Photography Awards

    3.6 m up for grabs in this years Benjamin Mkapa African Wildlife Photography Awards

    African Airlines Association call for support measures to rescue continent aviation industry

    African Airlines lost Ksh1 trillion in 2020

    Equity land Ksh16.5 billion loan to support MSMEs

    Equity land Ksh16.5 billion loan to support MSMEs

    KenGen Plans Direct Selling Of Electricity

    KenGen and Rwanda in discussion over exploration of geothermal resource

    KPA MD Post to be readvertised after interviewees fail to meet threshold

    10% of Kenyans completely unable to service their loans says report

    Employers continue deducting salaries in 2021 due to Covid-19

    17% of All Food Available at Consumer Levels is Wasted Says UN

    17% of All Food Available at Consumer Levels is Wasted Says UN

  • Markets
    Mitumba trade employs over 2 million Kenyans new report reveals

    Mitumba trade employs over 2 million Kenyans new report reveals

    African Airlines Association call for support measures to rescue continent aviation industry

    African Airlines lost Ksh1 trillion in 2020

    Equity land Ksh16.5 billion loan to support MSMEs

    Equity land Ksh16.5 billion loan to support MSMEs

    Electric Boda-Bodas’ Launched in Kenya

    Electric Boda-Bodas’ Launched in Kenya

    World Animal Protection calls for an End to wildlife trade

    World Animal Protection calls for an End to wildlife trade

    JKIA and Moi International Airport named the best in Africa

    JKIA and Moi International Airport named the best in Africa

    tvN – Korea’s top entertainment brand debuts on DSTV

    tvN – Korea’s top entertainment brand debuts on DSTV

    Samsung Named Top Global TV Manufacturer

    Samsung Named Top Global TV Manufacturer

    Locally assembled Proton Saga saloon car released to the market  

    Locally assembled Proton Saga saloon car released to the market  

  • Real Estate
    17% of Kenyan Billionaires looking to buy a house in 2021

    17% of Kenyan Billionaires looking to buy a house in 2021

    Kenyan Firm awarded Most Innovative Community Developer 

    #OmokaNaAlma: This is how you get awarded Sh50,000 by Cytonn Real Estate

    Developing Countries Set To Lose Sh22 Trillion Due to COVID-19

    Commercial office rents fall 13pc in quarter 3 & 4 of 2020

    New Construction Technology to help NHC deliver affordable homes

    New Construction Technology to help NHC deliver affordable homes

    NCBA partners with Shelter Afrique to finance properties in 5 counties

    NCBA partners with Shelter Afrique to finance properties in 5 counties

    New Ksh350Million Commercial centre to be constructed in Athi River

    New Ksh350Million Commercial centre to be constructed in Athi River

    Greenpark Estate injects Ksh15M to its development

    Greenpark Estate injects Ksh15M to its development

    LG’s OLED Honoured at the Technology and Engineering Awards

    LG’s OLED Honoured at the Technology and Engineering Awards

    Kenya’s position as a Digital Media Hub gaining momentum

    Kenya’s position as a Digital Media Hub gaining momentum

  • Tech
    Electric Boda-Bodas’ Launched in Kenya

    Electric Boda-Bodas’ Launched in Kenya

    Konza Technopolis, Israel to host Innovation Challenge

    Konza Technopolis, Israel to host Innovation Challenge

    TikTok releases H2 2020 Global Transparency Report

    TikTok releases H2 2020 Global Transparency Report

    OPPO Announces Global Partnership with Volkswagen

    OPPO Announces Global Partnership with Volkswagen

    2 Kenyans selected to create African Inspired stickers for New Chat App

    2 Kenyans selected to create African Inspired stickers for New Chat App

    Mobile Phones contribute to the realisation of UN SDGs – 2020 GSMA report says

    realme awards fans to Valentines through DaretoLove Campaign

    realme awards fans to Valentines through DaretoLove Campaign

    Opera launch its new Chat App to rival WhatsApp

    Opera launch its new Chat App to rival WhatsApp

    IoT predictions for 2021: Smarter tech will make better business

    IoT predictions for 2021: Smarter tech will make better business

  • World Business
    OPPO Announces Global Partnership with Volkswagen

    OPPO Announces Global Partnership with Volkswagen

    World Engineering Day to Be Celebrated in Kenya

    World Engineering Day to Be Celebrated in Kenya

    How NASA Technology Can Help Save The World’s Largest Shark

    How NASA Technology Can Help Save The World’s Largest Shark

    After fight with US Authorities Huawei CEO now want talks with Biden

    After fight with US Authorities Huawei CEO now want talks with Biden

    Ford Vehicles to be powered by Android and Google apps in new deal

    Ford Vehicles to be powered by Android and Google apps in new deal

    Columbia Africa banks on primary and preventive healthcare to grow market share

    Columbia Africa banks on primary and preventive healthcare to grow market share

    DHL Express Named Best Employer in The World

    DHL Express Named Best Employer in The World

    Meet the founder of Safari Doctors Umra Omar

    Meet the founder of Safari Doctors Umra Omar

    Kenya to receive Ksh 1 billion from Google for economic recovery

    Kenya to receive Ksh 1 billion from Google for economic recovery

  • KBF
    • All
    • Agribusiness
    • Banking
    • Insurance
    • Manufacturing
    • Opinion
    Mitumba trade employs over 2 million Kenyans new report reveals

    Mitumba trade employs over 2 million Kenyans new report reveals

    3.6 m up for grabs in this years Benjamin Mkapa African Wildlife Photography Awards

    3.6 m up for grabs in this years Benjamin Mkapa African Wildlife Photography Awards

    African Airlines Association call for support measures to rescue continent aviation industry

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    Equity land Ksh16.5 billion loan to support MSMEs

    10% of Kenyans completely unable to service their loans says report

    Employers continue deducting salaries in 2021 due to Covid-19

    17% of All Food Available at Consumer Levels is Wasted Says UN

    17% of All Food Available at Consumer Levels is Wasted Says UN

    Electric Boda-Bodas’ Launched in Kenya

    Electric Boda-Bodas’ Launched in Kenya

    World Animal Protection calls for an End to wildlife trade

    World Animal Protection calls for an End to wildlife trade

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    Farmers bet on indigenous foods to boost incomes and tackle malnutrition

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      Equity land Ksh16.5 billion loan to support MSMEs

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Kenya Airways open to airport-deal alternatives – Citizentv.co.ke

by Kenyan Business Feed
May 1, 2019
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While struggling national carrier Kenya Airways (KQ) has put forth the partnership proposal to co-operate the Jomo Kenyatta International Airport (JKIA) alongside the Kenya Airports Authority (KAA) terming the soundest option to turning around the airline, the flight operator is maintaining an open mind to the transactions, keeping all available cards close to its chest.

Speaking during the company’s investor briefing on Tuesday, KQ Chairman Michael Joseph insisted that the firm remains in close scrutiny of alternatives to the privately initiated partnership with KAA even as the carrier awaits parliamentary recommendations to their tabled offer.

“We don’t know what the recommendation might be. They might chose to recommend that we continue with the PPP, stay on our own or even ask us to initiate a plan B,” he said.

Plan B, C, D…

“There are a number of options that we could look at besides the PPP. We could look at bringing in other private investors besides KLM. Even closing down the airline has been an option we have looked at.

We however do not want to close the airline down but we also don’t want to stay as we are,” Mr. Joseph added.

A re-nationalization of the national carrier is too up for consideration by the airline’s board given the KQ’s current shareholding structure.

Sources close to the PPP probe in parliament have already informed Citizen Digital that legislators are of the opinion that raising the government’s share in the carrier would serve to embolden the airliner in addition to the potential for new capital injection.

Kenya Airways is majority owned by government at 48 percent with 5-commercial banks making up an additional 38 percent share in what is a sovereign guaranteed investment by the State making the re-nationalization plan a possibility.

However, KQ terms the PPP as the fastest, easiest and most convenient way of driving growth for the domestic aviator in the longer term.

“Something has to change in the paradigm of Kenya’s aviation sector. There has to be a determination in the pattern and tempo of growth in recovering the lost market share KQ needs to safety acquire fleet invest in new distribution channels to compete with the major carriers globally while defending our bub position,” said KQ Chief Executive Officer Sebastian Mikosz.

Living in the moment

While the debate and negotiations to the PPP continue, the airline remains on its in-house expansion drive through both its mainstay and short-haul routes through its sister carrier- Jambo Jet.

KQ is for instance on the verge of starting operations to new destinations- Rome and Geneva beginning June 12, 2019 which goes alongside its frequency additions to its major hubs especially on the continent.

In addition to the route expansion, the carrier is sticking to a fleet consolidation blue-print recalling its second Boeing 787 carrier from Oman Air in May while extending its sub-lease for 3 Boeing 777 planes to Turkish Airlines up to 2023.

“This clears the air about our white-body long-haul fleet. We have no other wide body units coming into our fleet under order. It’s very easy to buy a plane but much more complicated to pay for it and make money from it,” Mr. Mikosz said.

Further to the route expansion and fleet consolidation are innovations towards digital innovation and productivity increase in addition to the hedging against rising global crude prices which now sit north of Ksh.7000 (USD 70) per barrel.

The Big Apple

KQ began its much awaited direct flights to New York on October 28, 2018 gaining access to one of the largest airport hubs on the globe.

Despite the bankable opportunity, KQ C.E.O Sebastian Mikosz admits the route bears no lucrativeness defining in as a loss making exercise in the short-term.

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Instead, Mikosz says the importance of the route is defined in the feeding of networks on the continent particularly to the islands territories located on the Indian Ocean which he described as the ‘vanilla island strategy’.

New York is hence equated to the already established route to Dubai which KQ says has densified its network to West African hubs as passengers seek transit to the Arab Emirates through the Nairobi terminal.

The direct-flights to the ‘the capital of world’ have until the end of March uplifted up to 25,000 passengers in what has been an average load factor of 64.6 percent.

Collaboration

Meanwhile, competition has emerged to KQ’s own market share in the region market as both Uganda and Tanzania begin building capacity through the awakening of their long-lost airlines to add to the already established carriers in RwandAir and Ethiopia Airlines (ET).

However, Kenya Airways reckon an opportunity for collaboration amidst all the competition terming the growth as positive to Africa’s negligible air traffic statistics.

“We have to be agile. The market is growing and this is a positive element. There is much room for cooperation on the continent. Uganda for instance has only 2 aircrafts, what network could one build with that? I am interested in building a collaboration culture with Uganda especially on our domestic routes,” Mr. Mikosz added.

The airline remains in pursuit of an overhaul turnaround strategy to rid off years of continuous loss making.
Despite walking back losses by nearly three quarters in recent years, the carrier remains a loss making entity announcing a Ksh.7.6 billion loss for the period ending December 31st 2018 on Tuesday.




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