Kenya Airways (KQ, Nairobi Jomo Kenyatta) CEO Mbuvi Ngunze has denied reports in the local press which claimed government was considering selling its 29.8.% stake in the ailing airline to an undisclosed Middle Eastern carrier. In May, the Daily Nation quoted undisclosed company sources as saying Qatar Airways (QR, Doha Hamad International) and Emirates (EK, Dubai International) had been approached over their possible acquisition of a stake in Kenya Airways.
However, during a Kenyan parliamentary inquest last week, Ngunze dismissed the reports as purely speculative.
“We have seen speculations in the media of planned changes in KQ’s shareholding," he was quoted by Business Daily Africa. "That is just speculation. There is no change of shares. The government holds 29% of shares, KLM Royal Dutch Airlines (KL, Amsterdam Schiphol) has 26% while the rest belongs to other shareholders.”
Faced with rising costs and a slump in demand both regionally and domestically, Kenya Airways has requested and received a KES4.2 billion (USD43 million) bridging loan from government with KLM also contributing an undisclosed amount. The airline, said to be finalizing a USD200 million long-term financing facility, is in talks with financiers to restructure its debt and retire short-term loans valued at KES40.7 billion (USD419.29 million).
Airline turnaround specialist Seabury Consulting has also been enlisted overhaul and improve the Kenyan national carrier's operations.
