Pact that State seeks KLM approval complicates Kenya Airways rescue

Details have emerged about the co-operation agreement that Kenya Airways entered into with KLM, granting the Dutch airline sweeping powers on the operations of the national carrier. This ranges from the appointment of directors, sale of aircraft, route network and a say in allotment and issue of any shares in the capital of the company.

With such clauses in the agreement granting KLM key control, there are concerns that even the proposed Government bailout would not go through without the approval of the Dutch airline.