JKIA takeover rejected

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Kenya Airports Authority (KAA) has rejected a proposal by national carrier Kenya Airways (KQ) to takeover operations of the Jomo Kenyatta International Airport (JKIA) for 30 years.

The KAA on Wednesday told the National Assembly’s Transport, Public Works and Housing committee that KQ had no financial and technical capacity to run the airport.

While making submissions to the committee led by David Pkosing, the KAA management noted the difference between running an airline and an airport and said it was skeptical about the national carrier’s Privately Initiated Investment Proposal (PIIP).

Led by Chief Executive Officer Johnny Anderson and chairman Issac Awuondo, the authority questioned KQ’s financial strength to takeover the JKIA.

The two told the lawmakers that there was need to look for an alternative to help the airline reverse its dwindling fortunes.

The authority informed MPs that Kenya Airways owed it Sh5.4 billion as at March 31.

“We have been very forceful in the recovery of the debt but the reality is that they have been unable to pay. Had it been other airlines, we would have grounded them,” said Alex Gitari, KAA’s General Manager for Finance.

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