KQ shelves idea to manage JKIA due to heavy political opposition

Kenya Airways (KQ) has shelved the idea to manage the Jomo Kenyatta International Airport (JKIA) due to the heavy political opposition that the proposal has attracted.

KQ had earlier proposed the formation of a subsidiary dedicated to managing operations at JKIA for a concession period of 30 years.

KQ is also seeking to suspend operations on some routes in a bid to reduce its operational costs.

The national carrier posted a Ksh 7.55 billion net loss for the year which ended December 2018 due to high operational costs that ate into the national carrier revenues.

Speaking during a stormy Annual General Meeting, Kenya Airways Chairman Michael Joseph told shareholders that the management is considering to halting operations on routes that are less profitable and seek strategies to increase passenger numbers.

KQ Chair Joseph says the airline will only focus and retain profitable routes and also come up with initiatives to shore up the passenger numbers.

The airline’s chairman has also shelved the proposal to concession the management of JKIA, noting that the noble idea was infiltrated by politics.

There have been proposals about nationalizing Kenya Airways as a way of helping the carrier navigate some of the challenges it faces.

Shareholders were divided about nationalizing the airline with the minority shareholders worried that their investments might be diluted.

KQ shareholders faulted the management for increasing their pay despite not giving them dividends for five years in a row.


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