Treasury CS Ukur Yatani has confirmed that KQ sent a request for Ksh7 billion emergency funding. KQ cited a tough business environment coupled with falling revenues as the reasons behind its woes.
KQ intends to use the funds for the maintenance of the grounded planes, payment of staff salaries and settlement of utility bills like security, water, electricity and parking fees.
The International Civil Aviation Organization (ICAO) says in a 2020 air passenger forecast report that airlines may be faced with 1.5 billion fewer international air travelers this year. In addition, international seat capacity could drop by almost 75 percent, resulting in a 273 billion dollar loss.
READ ALSO: Government Pumps KSh5 Billion into KQ
In February the government pumped KSh5 billion commercial loan into Kenya Airways (KQ) to complete the scheduled engine overhaul program on its E190 Embraer fleet.
Following the suspension of its Nairobi-Guangzhou route, KQ suffered an $8 million (Ksh850 million) loss of revenue cutting across the passenger and cargo side, seeing that China is a key cargo origin as well as a main feeder to the regional freighters.
Kenya Airways (KQ) sent some of its workers on unpaid leave on 1st April 2020, as COVID-19 continues to take a toll on the aviation industry.
The unprecedented change in flight volumes saw the carrier resort to cargo business in a bid to remain afloat a move that saw the cargo business rake in a total of KSh214 million in revenues in the month of April.
Besides the bailout, KQ is seeking tax breaks and navigation and landing fees waivers.