DEBT INTO EQUITY“Kenya Airways board and management wish to warn that without immediate remedial action, the company may revert to technical insolvency,” notes the document. It was this Cabinet paper that approved the running of Jomo Kenyatta International Airport by Kenya Airways (JKIA), abbreviated as KQ, much to the chagrin of the Kenya Airports Authority (KAA) and the aviation workers’ union. “Insolvency of the airline will result in the immediate repossession of aircraft and engines by lessors and trigger the $750 million (Sh74 billion) government guarantee in place on behalf of Kenya Airways,” notes the document. “Kenya Airways should be treated as a national asset… and not a financial one because it is the only carrier interested in the growth of the Nairobi hub,” says the document, which was accepted by the Cabinet. The proposed Kenya Aviation Holdings Company will also run other aviation-related businesses within the airport and generate more revenue.

Source: Daily Nation March 08, 2019 08:11 UTC