Kenya Airways is withdrawing its Privately Initiated Investment Proposal from KAA consideration. The proposal submitted in October last year had earlier recommended the nationalization of the airline. Furthermore, KQ’s plan also sought to establish a holding company which would host four subsidiaries.
The subsidiaries would comprise of KAA, Kenya Airways (KQ), Jomo Kenyatta International Airport (JKIA), and a centralized aviation college.
The airline arrived at the withdrawal decision on August 27, 2019, during the quarterly meeting of its board of directors. While the company has withdrawn the PIIP, Kenya Airways still hopes to collaborate with the other stakeholders in the aviation industry.
Sebastian Mikosz, KQ’s CEO said, “KQ’s Board and Management believe that the PIIP has catalyzed important discourse about the future of Kenya’s civil aviation, which is now being led by the Government of Kenya. Kenya Airways looks forward to continued collaboration with all involved stakeholders of the process.”
The parliament had earlier adopted the Privately Initiated Investment Proposal. Most importantly, the Transport committee had also requested Treasury to grant the Aviation Holding Company exemption of excise duty on jet fuel.