Will Nationalising Part of the Kenyan Flag-carrier Lift it Out of Debt?

Kenya Airways Plc. is willing to operate under a state-owned holding company after the troubled airline failed in its bid to jointly run the country’s main airport. Lawmakers in the East African nation are expected to issue alternative proposals, including the possible partial nationalization of Kenya Airways, after they last month rejected the airline’s proposal to operate Jomo Kenyatta International Airport with the state-owned Kenya Airports Authority. The airline, which reported a $59 million full-year loss, is proposing a model similar to Emirates Airline and Ethiopian Airlines Enterprise, which operate as units of state-owned holding companies. Such an arrangement would enable it to double its fleet in five years. Kenya Airways, which is 48.9% owned by the government, is also on the hunt for a chief executive officer after Sebastian Mikosz said he would step down before the end of his three-year contract.SOURCE:  AL JAZEERA

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