AIRCRAFT MAINTENANCE ASSURED FOR KENYA AIRWAYS AS GOVERNMENT GIVES THEM A 5 BILLION SHILLINGS LOAN
(Posted 29th February 2020)
The continued maintenance of Kenya Airways’ Embraer 190 fleet is now assured, after the Kenyan government granted the airline a 5 billion Kenya Shillings loan – in other words another bailout from taxpayers money.
The funds are due to be used for engine maintenance and overhauls and general maintenance of this fleet but which Kenya Airways could not finance out of their cash flow and with no reserves in the bank, the government again had to step up.
The Kenyan government is intent to re-nationalise the airline following years of debilitating financial losses but industry pundits are questioning the move, suggesting that this will not ensure a return to profitability nor be a guarantee of long term survival, which only a fundamental turnaround could bring about.
Kenya Airways’ under Kenya’s financial regulations had to notify the Stock Exchange about the new loan and source placed there lost no time to make the situation public.