Kenya Airways planes are seen parked at the Jomo Kenyatta International airport near Kenya’s capital Nairobi, April 28, 2016. REUTERS/Thomas Mukoya/File Photo National carrier Kenya Airways (KQ) says it is seeking an additional Ksh.4 billion in government support to stay afloat through the pandemic.
The new revelation by the airline on Wednesday clarifies reports indicating the carrier had sought out a fresh Ksh.7 billion bail out to keep flying amidst Covid-19 led disruptions to its operations.
According to KQ Group Chairman Michael Joseph, the carrier applied for a two tranche Ksh.9 billion loan in January and has since received the disbursement of a paltry Ksh.5 billion, booked on February 18, to revamp engineering operations and general operations.
Joseph expects the second part of the credit facility, expected from July 1, to meet additional fleet costs and staff benefits as the carrier awaits a potential near-term return to full scale operations.
“We’ve been grounded for almost three months now. During that time, we’ve maintained all of our 38 aircrafts. We have to pay leases and meet insurance costs which do not go away whether you fly or not,” he said.
“We have asked formally for support from government and are still waiting to hear from them.”
KQ operations have severely been dented by the Covid-19 pandemic with most of its operations being grounded since March 25 in line with international virus containment measures which have seen most other airlines shut down shop.
The airline says 90 percent of its operations have been severed with the only lifeline coming by the way of its cargo business which has seen it re-purpose three Boeing 787 passenger aircrafts to lift cargo.
While the pandemic represents an ongoing concern for Kenya Airways, new Chief Executive Officer Allan Kilavuka says the unexpected break allows time for the carrier to re-invent itself.
“Nobody knows how this pandemic will look like in the end. In a way, it gives us time to reflect and retrospect as we ask ourselves questions on how to better manage the carrier,” he said.
While prepping up for a potential June 8 return, the airline first seeks to review its network in line with market recovery trends in the post-virus age.“We are going to respond to the market in the new context which we are yet to see. We need to maximize in routes where we can build traffic quickly enough. Second is to keep routes with a positive contribution to our […]