Cash-strapped Kenya Airways is seeking another KSh 7 billion bailout from the government as it hopes to recover from the coronavirus storm that has halted its operations.
Most of KQ passenger planes were grounded in March following air travel restrictions across the world sparked by the pandemic that has so far infected over four million people and killed at least 287,000 others.
According to Business Daily, the national carrier was also seeking other incentives like tax breaks and waivers of navigation and landing fees.
The loss-making airline which was once the pride of Africa risks collapsing without aid given it would run out of money to maintain planes, pay of staff salaries and settle utility bills like water, security, parking fees and electricity.
It costs KQ KSh 2,650 daily to park large planes at airports like the Jomo Kenyatta International Airport (JKIA) , on the other hand it costs KSh 62,010 and KSh 74,412 to land during the day and night respectively. National Treasury CS Ukur Yatani said the state was considering KQ’s application as it had been bailed out recently.
“We are looking into KQ’s Sh7 billion request during this difficult time. The request will be reviewed against the background that the airline recently received KSh 5 billion from the government,” Yatani said.
KQ’s rival Ethiopian Airlines recently bagged a deal to fly COVID-19 medical supplies across Africa as the Kenya’s flag carrier protested.
“We have objected the move to have Ethiopian Airlines use their passenger flights for cargo business in Kenya because we were not consulted on the impact that this would have on our business,” KQ CEO Allan Kilavuka said.
