US Company Starts Advisory on Kenya Airways Restructuring Plan

US-based financial consultancy company Seabury Consulting has commenced its role of advising Kenya Airways (KQ) on its restructuring process.

The national carrier in February appointed Seabury, a subsidiary of professional services giant Accenture, to help reorganize the airline as it seeks to restructure its debt and boost its revenues on a long-term business plan.

“They have started work but it’s an ongoing assignment with various deliverables along the way. They have specific timelines—it’s a six-month contract,” KQ Chairman Michael Joseph told Business Daily.

He added: “They will assist with the restructuring as part of the financial support from the National Treasury.”

Seabury has previously been appointed by leading global airlines including India’s Jet Airways, Germany’s Air Berlin, Norwegian Air Shuttle among others to advise them on cutting losses, increasing revenue, and restructuring their debt.

The restructuring plan, which is part of the efforts to keep the loss-making airline afloat, comes amid a planned government bailout. KQ was allocated Sh26 billion in the supplementary budget estimates presented to the National Assembly last month by the Treasury.

The airline is seeking funds for the maintenance of grounded planes, payment of salaries, and settlement of utility bills such as security, water, electricity, and parking.