The past two years have resulted in significant losses for the global airline industry, with Kenya Airways being no exception.
After announcing significant losses during the course of the Covid-19 pandemic, it has been revealed Kenya Airways (KQ) will receive a $176 million stimulus. This saw the airline drastically scale back their passenger levels to levels not seen since 1999.
According to the airline’s CEO, Michael Joseph, the cash injection is conditional and means that KQ will need to embark on a restructuring exercise to ensure that it is more viable as a business operation, noting that this “is dependent on certain restructuring milestones”.
The airline announced this Friday that it has appointed Seabury Consulting, part of Accenture, to restructure its debt.
“Kenya Airways has experienced losses in recent years and faces significant future challenges. Sector-specific expertise will contribute to a better understanding of major trends in the regional and local aviation market, the formulation of a viable business model for Kenya Airways and ensure the consideration of all least cost alternatives for the Exchequer,” noted the IMF in a report in June 2021.
