Kenya Airways (KQ, Nairobi Jomo Kenyatta) is amongst the biggest beneficiaries of a Kenya Airports Authority (KAA) KES700m shilling (USD5.6 million) waiver in airport parking fees and concession payments for airlines and concessionaires in the 2020/2021 financial year, reports Nation newspaper.
“Despite the challenging business environment, the authority extended support estimated at KES700million to airlines and concessionaires in terms of waivers on aircraft parking and concession payments to catalyse business recovery,” KAA board chairman Isaac Awuondo was quoted by the newspaper.
Kenya Airways mainly operates from KAA-managed airports in the country, including Nairobi Jomo Kenyatta; Mombasa; Kisumu; and Eldoret, making it the key beneficiary of the waiver.
KAA charges KES1,230 (about USD10) daily parking fees for smaller aircraft and more than KES12,300.26 (almost USD100) for larger aircraft.
The airport authority granted the waivers following an application by the Kenya Association of Air Operators (KAAO), an umbrella body of Kenyan commercial airlines, based on declining income from fewer flights.
KAA data showed that aircraft movements and passenger volumes declined by 50.5% and 26.7%, respectively, by June 2021 compared to June 30, 2020, although cargo volumes grew by 1.8% on imports of Covid-19 supplies.
The decline in business saw Kenya Airways’ revenue fall by 37% to KES8.4 billion (USD68.2 million) in the financial year ending June 2021, compared to KES13.3 billion (USD108 million) recorded ending June 2020.
The KAA also waived minimum annual guarantees for all concessionaires for three months. Concession fees for ground handling, duty-free, catering services, advertising and car parks will be based on actual activity.
