Kenya Airways applies for State bailout to avoid collapse

Kenya Airways has sought a multi-billion shilling government bailout after the grounding of its aircraft due to the ban on international flights sparked by the coronavirus pandemic. The airline stopped international flights after a State order on March 22 to cancel all cross-border passenger flights. The order effectively cut off Kenya Airways’ flow of new revenues at a time when it had no cash reserves. Without State aid, the airline risks running out of money in the near future against the background of banks’ uneasiness in lending to Africa carriers. Kenya Airways CEO Allan Kilavuka Monday said that the carrier had sent an emergency notice for additional funds to both the Treasury and the Ministry of Transport. The airline said it needs money for maintenance of grounded planes, payment of staff salaries and settlement of utility bills like security, water and electricity. “We have requested the government for financial support through a bailout as at the moment we are cash strapped by the fact that we are no longer in operation, except for a few local flights,” said Kilavuka.<br/>