Kenya Airways (KQ) is mulling over its future at the Nairobi Securities Exchange (NSE) with the aim of making it “more agile and responsive to changing market dynamics.” Although not a priority decision, the national carrier has been considering its future at the NSE as it continues with its restructuring process.
KQ chief executive Sebastian Mikosz said this consideration is part of a long-term strategy as it makes efforts to become profitable again.
“This is part of the discussion that might happen during or after the public-private partnership (PPP), that is always something to think about, what’s the added value of being listed or not being listed but I guess this is a more complicated and broader decision than just the partnership. The fact of being listed or not might be a consequence but at this stage, it is not a priority,” he said.
KQ is currently owned by the Kenyan government which holds 48.9 per cent, KQ Lenders Company at 38.1 per cent, KLM Royal Dutch Airlines at 7.8 per cent, while the other shareholders own 5.2 per cent.
“It is really an individual decision of listed shareholders, the individuals, as well as banks, as well as KLM should I stay, or should I go. What is my option of disposing of the shares? This is something that is alive, the shareholding can change any minute,” he stated.
Seeking a Competitive Edge
Kenya Airways wants to increase its competitive edge as competition in the industry increases, particularly from Ethiopian Airlines which has the potential to be even greater if the government goes ahead with its privatisation plans.
KQ is also planning on taking over the management of the Jomo Kenyatta International Airport (JKIA) in order to position itself as an aviation hub. If KQ achieves this goal, it will have a greater competitive edge in the industry.
“This PPP is not used in any other country so we can have a system where we have synergy in assets but it does not mean we are copying the other models,” said Mikosz.
“My dream would be to have 100 destinations, 150 aircraft and a profitable airline, whatever it takes to achieve it, that’s my dream,” he added.
RELATED; Kenya Airways Confirms Merger Talks With Kenya Airports Authority
