Home Business news KQ seeks ksh 4 billion loan from government to continue its operations

KQ seeks ksh 4 billion loan from government to continue its operations

National carrier Kenya Airways says it’s seeking a loan of ksh 4 billion from the government to stay afloat.

The airline made the revelation on Wednesday. This announcement confirms speculations that the carrier tried finding ksh 7 billion to continue its operation amid the covid-19 pandemic.

KQ’s group chairman Michael Joseph confirmed the airline applied for a loan of ksh 9 million in January. It has since received ksh 5 billion to refurbish both general and engineering operations.

Mr. Joseph said he expects the second part of the loan by July 1. He added the money would help meet staff benefits and additional fleet costs as the airline awaits to continue its full operations soon.

“We’ve remained grounded for three months. Since that period, we maintained all our 38 airplanes. We must meet all insurance costs and pay for leases whether the planes operate or not.

We have officially asked for aid from the government, and we’re waiting for their response,” said Mr. Joseph.

Losses

The covid-19 pandemic has dented KQ operations severely, with most airlines grounded since March 15. The move followed the international containment measures, which saw most airlines close shop.

Following the move, KQ survived its lifeline through cargo operations using its three Boeing 787 passenger aircraft.

Although the ongoing pandemic raises concerns regarding the future of Kenya Airways, newly appointed CEO Allan Kilavuks says it’s an opportunity for the airline to reinvent.

“Nobody knows how the pandemic may appear in the end. In the meantime, it offers time to retrospect and reflect on better ways of managing the aircraft.

While preparing for a potential return of June 8, first, the airline seeks to analyze its network in line with market recovery trends following the pandemic.

Further, Kenya Airways plans to pin its sustainability on the recently passed reforms by the Aviation Holding Company.

The company is after merging the national carrier with Airports Authority (KAA) to be tabled in parliament shortly.

Related news

Senate team asks EACC to fast track investigations on Sh51 million Kilifi fraud

A Senate oversight committee has beseeched the Ethics and Anti-Corruption Commission (EACC) to speed up the investigations on the Sh51 million fraud in Kilifi...

Nairobi-Mombasa Madaraka Express services to resume on Monday – CS Macharia

Madaraka Express passenger services from Nairobi to Mombasa and vice versa will resume on Monday following the lifting of movement restrictions in and out...

Co-operative Bank partners with the Laikipia County government in a Sh300M project

The Co-operative Bank of Kenya has partnered with the County Government of Laikipia in a project worth Sh300 million by launching the Laikipia Enterprise...

No chewing of Miraa and Muguka! – Presidential escorts given stern...

Presidential escorts have been warned against chewing of Miraa and Muguka effective 6 July 2020. Through an internal memo by the Head of the Presidential...

Waiguru’s biggest rival loses top job

Governor Anne Waiguru's most prominent political rival, Kirinyaga women representative Anne Ngirici has lost her job as the Kenya Women Parliamentary Association (KEWOPA) chair. KEWOPA...

Kenyans mock Robert Burale after he released a video of himself...

Pastor Robert Burale has come out confirming that he has contracted the coronavirus and is at the Nairobi Hospital. The trendy pastor took to...

We will expel Babu Owino from the party if he is...

Orange Democratic Movement party Secretary General Edwin Sifuna has stated that the party will expel one of their own, Embakasi East Member of Parliament...

FOLLOW US

15,734FansLike
3,493FollowersFollow

NEWS JUST IN

Betty Kyalo talks on flying to Dubai with Joho

Renowned media personality Betty Kyalo has put to rest rumors that she has traveled with Mombasa governor Joho to Dubai. Joho had uploaded a pic...

City Hall on the spotlight for misappropriation of funds on ghost...

In the recently completed financial year, Nairobi county may have spent over Ksh 600 million on ghost projects. The Controller of budget for the county...

Akothee’s message after Tanzanian actress Shilole shares heartbreaking photos following serious...

Kenyan singer and businesswoman Akothee has shared a powerful message after Tanzanian actress Zena Yusuf Mohammed popularly known as Shilole shared a horrifying photos...

“I don’t know the guy!” Kagwe dismisses Burale rumours

Mutahi Kagwe has responded to the rumours stating that motivational speaker, Robert Burale, is a paid actor faking COVID-19. After a journalist had asked him...

Kenya records highest number of COVID-19 cases days after end of...

Kenya has recorded the highest number of COVID-19 three days after President Uhuru Kenyatta ended the cessation of movement with 447 people testing positive...

No chewing of Miraa and Muguka! – Presidential escorts given stern...

Presidential escorts have been warned against chewing of Miraa and Muguka effective 6 July 2020. Through an internal memo by the Head of the Presidential...
Loading...