– KQ CEO Allan Kilavuka said the debt-ridden airline was in the process of securing over $70 million (KSh 7 billion) emergency bailout in order to stay afloat
– It is expected the projected loss could adversely affect the airline’s operations
– Measures were, however, being implemented to ensure the national carrier stayed in business
Kenya Airways is likely to lose $500 million (KSh 50 billion) due to the effects of COVID-19.
According to the airline’s chief executive officer (CEO), Allan Kilavuka, the airline has been compelled to make hard decisions.
READ ALSO : CS Joe Mucheru says Uhuru drives himself around at night to inspect govt projects This, he said, was due to the anticipated loss which could affect the company’s finances.
This could include laying off staff and the sale of key assets.
Speaking at the 44th annual general meeting (AGM) Kilavuka said Kenya Airways was in the process of securing over $70 million (KSh 7 billion) emergency bailout in order to stay afloat. He said the airline had developed a restructuring plan and was awaiting the green light from the board of directors.
The CEO also noted the national carrier was also developing a strategy to diversify its business from passengers to cargo.
In 2019, Kenya Airways recorded a KSh 12.98 billion net loss as a result of increased operating costs. In a statement, KQ chairman Michael Joseph said the airline’s operating costs increased by 12.4% due to the return of two planes that had been subleased to Oman Air. The group saw a 12.4 % increase in operating costs, driven by the increase in capacity deployed and an increase in fleet ownership costs attributed to the return of two Boeing 787 aircraft that had been subleased to Oman Air," said Joseph. Do you have a hot story or scandal you would like us to publish, please reach us through news@tuko.co.ke or WhatsApp: 0732482690 and Telegram: Tuko news.
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