Kenya Airports Authority Rejects JIKA Takeover Plan

The Kenya Airports Authority (KAA) has rejected a proposal for Kenya Airways (KQ) to takeover operations at Jomo Kenyatta International Airport (JKIA), according to the Daily Nation.

KAA has resisted the move on the basis of KQ’s lack of financial and technical resources, submitting its opposition to the 30-year proposal to the National Assembly’s Transport, Public Works and Housing committee.

In February Parliament suspended proposals to merge KQ with the KAA as MPs look for a way to rescue the national carrier. Despite the company’s recent financial restructuring in May last year Cabinet warned that should the merger fail KQ could collapse within the year if it did not receive significant capital injections. However, the Public Investment Committee (PIC) determined that the merger would have bankrupted KAA. Kenya Airways is reported as owing KAA Sh5.4 billion as of March 31.

Addressing the committee KAA CEO Johnny Anderson stated that JKIA contributes 80% of the authority’s revenue, amounting to around Sh12 billion annually. He also stated that this revenue is used to operate and develop airstrips in other parts of the country.