Renationalisation unlikely to fly Kenya Airways back to profit

By taking back full control of Kenya Airways, lawmakers are banking on Kenya's ability to replicate the profitable example of Ethiopia's state-owned flag carrier Ethiopian Airlines. The global precedents are not reassuring. Govt takeovers rarely transform loss-making airlines, analysts say. And Kenya Airways faces 2 major hurdles: competition from regional rivals and potential govt interference. Kenya plans to form an aviation holding company with a healthier balance sheet by combining the airline with a planned national aviation college and profit-making assets such as the main international airport and airports authority. But some experts believe such a move may only compound the airline's problems, opening it up to political interference without a clear strategic direction. <br/>