Sunday, November 17, 2024

KQ stops flights for first time in 40yrs, pleads for bailout to avoid collapse

Kenya Airways Flights

Kenya Airways Flights: Kenya Airways has stopped all passenger flights for the first time in four decades. This decision, the airline said, was brought about by an announcement by most governments to shut down airports so as to curb the spread of coronavirus.

“For over 40 years it’s been our pride to connect Africa to the World and the World to Africa. For the first time in our history we’ve put a pause on our flights. But as we do, we can’t wait to take to the skies with you again. Thank you for your loyalty. Stay safe,” KQ said.

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The national airline has also sought a multi-billion shilling government bailout in an effort to avoid what looks like imminent collapse. Kenya Airways stopped international flights at a time when it had no cash reserves.

Kenya Airways Chief Executive Officer Allan Kilavuka said that KQ had sent an emergency notice to both the Treasury and the Ministry of Transport seeking money for maintenance of grounded planes, payment of staff salaries and settlement of utility bills like security, water and electricity.

“Domestic flights contributed only eight percent of the airline’s sales in 2018, bringing in Sh. 9 billion out of Sh. 114 billion that the listed firm recorded as revenue. This means that KQ on average generates about Sh. 300 million daily from international flights,” a related report in a local daily said.

The national carrier was last week listed by Bloomberg as one of the airlines that risks running into bankruptcy unless it gets immediate government bailout within the next two months. Kenya Airways Flights.

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