Kenya Airways makes proposal to takeover JKIA
KAA has received a proposal from Kenya Airways to manage operations at JKIA
Dec 26, 2018: Kenya Airports Authority (KAA) has received a proposal from Kenya Airways to manage operations at the Jomo Kenyatta International Airport (JKIA), Nairobi, in a restructuring plan aimed at aiding the airline’s recovery and boosting its revenues.
Jonny Andersen, MD, KAA said that the application, which outlines how Kenya Airways will support and grow the aviation business in Kenya, will be granted if it meets approval from the airports regulator. “In addition, KAA must satisfy itself that the proposal is feasible and provides for value for money to both KAA and the public before implementation.”
To be able to ascertain the viability of the project, KAA has appointed an adviser to assist and guide comprehensive due diligence and an evaluation process for the project. The process, according to Mr Andersen, is structured in line with requirements of the public private partnership (PPP) Act.
Kenya Airways is set to merge with KAA as part of a grand plan to deepen the airline’s recovery and cement Nairobi’s status as a regional transport hub.
Through the PPP, which is yet to be signed, Kenya Airways will take overall the staff and operations of the KAA. This move will expand the range of the airline's services to include ground handling, maintenance, catering, warehousing and cargo.
It is also envisaged that a special economic zone will emerge around the country’s main aviation hub, JKIA.
The government is further expected to support the joint venture by exempting the national carrier from certain taxes and allowing it to retain several levies as part of the plan to stop financial haemorrhage at Kenya Airways and bolster JKIA’s status as East Africa's aviation hub.