Kenya Airways has withdrawn its proposal to run the Jomo Kenyatta International Airport.
This is after Kenya’s National Assembly rejected the proposal and instead recommended the establishment of an aviation holding company to consolidate the country’s aviation assets, including the nationalisation of KQ.
Speaking about the decision, Kenya Airways CEO Sabastian Mikosz said the decision to withdraw was agreed on during the quarterly meeting of the Board of Directors held on August 27, 2019.
The airline had sought a concession to manage the airport to enable it compete with competitors such as Ethiopian Airlines, which are heavily subsidised.
It proposed the creation a special purpose vehicle (SPV) to operate, maintain and develop JKIA.
However, the proposal was rejected by MPs on grounds that the airline did not demonstrate that it has the financial capacity, relevant experience and the relevant expertise to manage JKIA as required by law.
businesstoday.co.ke reports that MPs observed that the proposed role of KQ in the concession proposal creates a conflict of interest with regard to its dealings with other airline operators at JKIA and may lead to the oppression of such operators.