Government should nationalise Kenya Airways quickly, says Sebastian Mikosz
SEE ALSO :Nationalise KQ speedily, Mikosz urgesETHIOPIAN’S SUCCESS Ethiopian Airlines runs air transport assets, including airports and fuelling operations, under a single company. Funds from the profitable parts support the others. “This model was created 15 years ago, and it took them 15 years to get from literally a very small local airline to the giant that they are today,” Mikosz said, who in May announced that he would leave Kenya Airways by the end of the year. Kenya Airways is also expecting an equity injection from the government to help improve cash flow, Mikosz said. He disputed analysts’ view that a government takeover would not return the airline to profitability. Being privately owned did not help the airline avoid its financial woes and if state ownership works for the competition, “why not for Kenya Airways?” he said. But the airline must retain its commercial flexibility and avoid some of the limitations imposed on other state-owned companies, such as regulations requiring public tendering. The airline needed to source spare parts quickly from unique suppliers. A Boeing plane needs Boeing spare parts, Mikosz said. Kenya Airways also needs to exploit the lack of connectivity on the continent and a growing Asian market to win back market share from competitors like Emirates and Turkish Airlines , he said. “Just the Chinese market is going to add in the next 15 years more than a billion passengers ... it is ten times the size of Africa,” he said.
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