Kenya Airways in the race among seven others for Air Madagascar stake

Kenya Airways in the race among seven others for Air Madagascar stake

Jan 5, 2016: Kenya Airways has made it to the shortlist for a minority stake in Air Madagascar, which is looking for a strategic partner to revive its fortunes. Other than Kenya Airways, there are six other airlines which have made the cut.

The beleaguered airline revealed that Kenya Airways, Air Austral, Ethiopian Airlines, Air Mauritius and South African Airlink are some of the carriers looking for a stake of up to 49 per cent.

The government of Madagascar, with financing from the World Bank, is seeking a strategic investor “willing to invest in the company by taking minority equity shares and by bringing know-how to the airline as well as committing to run it.”

Kenya Airways’ interest in owning a piece of the Madagascar national carrier, and helping to revive it, comes at a time when it is itself in desperate need of about Sh60 billion to recapitalise the loss-making business.

The airline, which is 29.8 per cent owned by the Treasury and 26.7 per cent owned by Air France- KLM, has posted four consecutive full-year losses beginning March 2013.

In the year to March, Kenya Airways posted a net loss of Sh26.2 billion.

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