The national carrier, Kenya Airways, has abandoned bid to manage JKIA – Kenya’s largest point of air entry and Kenya Airport Authorities’ largest single source of revenue.
This has been announced by the airlines Chairman Michael Joseph at the Annual General Meeting held in Nairobi.
Michael Joseph insists the takeover plan presented to JKIA though good for the airline and the airport as East Africa’s point of entry; it has been politicized.
”We gave up on the plans to manage JKIA after the whole issue was politicised,” Joseph said.
Also the board has accepted the resignation of the current CEO Sebastian Miskoz who is set to leave the company at the end of the year, a few months before the end of his contract.
On the other hand, KQ Chairman Michael Joseph’s has been reelected for another three years, handing him an extension of his term.
Tough questions have been asked during the general meeting, with minority shareholders rejecting any nationalization plan.
The Chairman however assured the shareholders that plans are in place to protect their interests in case the Kenya Airways PLC is nationalized.
”It is not our wish to nationalize the airline. If we go that way, I promise you it will be different,’ Joseph said.
Others elected during the AGM include John Ngumi to the board to serve for three years with Treasury PS Kamau Thugge as a director.
Kenya Airports Authority had rejected the proposal to have the airline manage JKIA with the authority’s MD Jonny Andersen saying the proposal does not give KAA value for money -as KQ is already in debt to KAA to the value of Sh5 billion.
Kenya Airways(KQ) plane. PHOTO|COURTESY
KQ had been seeking a 30-year deal that would have seen it operate and maintain JKIA, a move that received a backlash from lawmakers and the public with the Kenya Airports Workers Union – KAWU calling for an industrial action that crippled activities at the airport.
The Chairman has however assured the shareholders that the airline will get back to profitability after years being looted.
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