game changer?

Kenya Airways to be split into subsidiaries in latest turnaround plan

By Herald Aloo

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Posted on October 27, 2022 11:19

A Kenya Airways passenger Embraer 190 plane manoeuvres at the Kenya Defence Forces (KDF) Museum Air Show Festival in conjunction with the Aero Club at the Uhuru Gardens in Nairobi © A Kenya Airways passenger Embraer 190 plane, May 28, 2022. REUTERS
A Kenya Airways passenger Embraer 190 plane, May 28, 2022. REUTERS

The number of restructuring strategies for the ailing Kenya Airways (KQ) continues to pile under different regimes, but finding a lasting cure remains a puzzle. The latest move involves plans to split the national carrier into various subsidiaries.

Kipchumba Murkomen, the cabinet secretary for roads, transport and public works, told parliamentarians that the move will see KQ’s passenger and cargo business units separated.

New lines of operation, such as drone services, could also be introduced, owing to the implementation of Civil Aviation Regulations 2020, which came into force early last year to govern the importation and charges of local use of drones in Kenya.

“We need to have a passenger airline, cargo airline and charter airline. We might also need KQ to have other businesses on the side like drone services and surveying services,” Murkomen told the parliament this month.

According to Murkomen, President William Ruto is engaging KQ, its shareholders, and other players in the plan.

KQ Chairman Michael Joseph confirmed that the national carrier is indeed in talks with the new administration regarding its structural outlook

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