Kenya Airways, once the “pride of Africa,” is selling off yet another piece of itself
Kenya Airways, once one of Africa’s leading airlines and a symbol of Kenyan pride, is struggling. The company has recorded 4 consecutive years of losses, the result of a poorly timed expansion strategy. Now, in need of more than US $1b to pull off a complete turnaround, the airline is in talks to sell off a further stake in itself to foreign investors. “We are talking to about 3 or 4 parties,” Mbuvi Ngunze, the airline’s CE, said Sept 26, without saying how much the company plans to raise or how large a stake it plans to sell. The airline’s largest shareholders are the Kenyan govt, which owns 29.8%, and Air France KLM, which has 27%. Discussion of a sale has come after efforts such as selling or leasing out 7 of its planes and giving up its landing spot at London Heathrow airport failed to raise enough money. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-09-28/sky/kenya-airways-once-the-201cpride-of-africa-201d-is-selling-off-yet-another-piece-of-itself
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Kenya Airways, once the “pride of Africa,” is selling off yet another piece of itself
Kenya Airways, once one of Africa’s leading airlines and a symbol of Kenyan pride, is struggling. The company has recorded 4 consecutive years of losses, the result of a poorly timed expansion strategy. Now, in need of more than US $1b to pull off a complete turnaround, the airline is in talks to sell off a further stake in itself to foreign investors. “We are talking to about 3 or 4 parties,” Mbuvi Ngunze, the airline’s CE, said Sept 26, without saying how much the company plans to raise or how large a stake it plans to sell. The airline’s largest shareholders are the Kenyan govt, which owns 29.8%, and Air France KLM, which has 27%. Discussion of a sale has come after efforts such as selling or leasing out 7 of its planes and giving up its landing spot at London Heathrow airport failed to raise enough money. <br/>
