Sh45 Billion Needed to Rescue Kenya Airways, Chairman Michael Joseph Says

Sh45 Billion Needed to Rescue Kenya Airways, Chairman Michael Joseph Says

Kenya Airways needs at least Sh45 billion to return to profitability, the airline’s Chairman Michael Joseph has said.

Speaking during an interview with Citizen TV’s Jeff Koinange in New York, Joseph hit out at the government over what he termed as lack of commitment to turn around the airline’s fortunes.

“It’s frustrating how the government is reluctant to act on anything …and as everyone knows I am very impatient and I need this turnaround to have been done by yesterday,” he said in the interview aired on Wednesday.

Joseph appeared in the interview alongside outgoing Kenya Airways CEO Sebastian Mikoz, who accused the government of allowing political interference in the running of the carrier.

Mikosz indicated that lack of knowledge and political interference led to the collapse of the Privately Initiated Investment Proposal (PIIP).

“The bull**** needs to stop. This is a political decision that has seen the airline lose out to other competitors in the region …in the long term JKIA will be around but KQ ………,” Mikosz stated.

Under the proposal, KQ was seeking to take over the management of Jomo Kenyatta International Airport (JKIA) from the Kenya Airports Authority (KAA) for a period of 30 years.

During the interview, Mikosz explained that JKIA’s position as a regional hub has the potential of aiding KQ to turnaround its fortunes.

He indicated that his departure from the airline before the expiry of his term was as a result of various reasons including personal attacks.

“There are a lot of things that made me do this, I mean, I cut my contract by 5 months,” he told Koinange.

KQ is marking its one year anniversary of nonstop flights to the US where more than 105,000 passengers traveled using the airline during the period.
 

Comments

imkgoogo (not verified)     Thu, 11/14/2019 @ 01:13pm

KQ is a private company, and if they have allowed politicians to take over, then they should resign. Being a private company, they can arrange the loan with the Americans, Europeans, Europeans or even the Russians. they should avoid the Italians to avoid dam scandal 2.

mwangi (not verified)     Fri, 11/15/2019 @ 03:40am

Must be a joke.
Just sense the self indignation.
Uhuru, my mutumba business is failing. Can we meet and discuss a rescue plan?

Reminder: KQ has been bailed out by govt several times with your tax shillings.

By all accounts, this money ended up in the pockets of wenyeinchi.

Sooner or later myself and the rest of us will say enough is enough.

Mumbi (not verified)     Fri, 11/15/2019 @ 09:45am

KQ needs to wind up and close shop if they cannot operate profitably. How can we trust KQ to run JKIA while they continue to lose billions every year? This is like a man who cannot support 1 wife taking on a 2nd wife. Pure madness!

Arap Teya-Kipchang (not verified)     Fri, 11/15/2019 @ 11:18pm

The airline needs to innovate or cease existing as a business. A business that refuses to innovate is bound to be overtaken by other similar businesses. The renovated JKIA airport should be an incentive to this airline to make itself a rising star in Africa.
But what do we see here? Some fat disgruntled executives who are yearning to swindle taxpayers in the name of rescuing an airline. It is their duty to make it remain solvent! Otherwise, quit!

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