Lawmakers Propose Nationalising Loss-Making Kenya Airways

A Kenyan parliamentary committee on Tuesday recommended nationalising Kenya Airways as part of an effort to turn around the loss-making airline, Reuters reported. The transport, public works and housing committee also proposed setting up of an aviation holding company with four subsidiaries, one of which would run Kenya Airways, which is 48.9% owned by the state and 7.8% by Air France-KLM. Under the proposals, which still need to be debated and voted on by parliament, another arm of the holding company would operate Nairobi’s main international airport. The cabinet backed a plan last year to hand over management of Nairobi’s profitable Jomo Kenyatta International Airport to Kenya Airways to boost the airline’s balance sheet and help it buy new planes. The plan was later shelved. Read more