Kenya Airways submits proposal to KAA over Nairobi hub

Kenya Airways (KQ, Nairobi Jomo Kenyatta) has formally submitted a proposal to the Kenya Airports Authority (KAA) regarding the airline's interest in Nairobi Jomo Kenyatta Airport.

In a statement issued on Friday, December 21, KAA's chief executive Jonny Andersen confirmed it had now received a Privately Initiated Investment Proposal (PIIP) from Kenya Airways in which it seeks a concession to operate, maintain and develop Kenya's primary airport.

In the PIIP, Kenya Airways PLC outlines the rationale for its request and how this will reposition, support and grow Kenya's aviation sector.

The KAA said it had appointed Transaction Advisors to assist and guide a comprehensive due-diligence and evaluation of the proposal to ensure its viability and benefits.

If successful, Kenya Airways plans to consolidate Nairobi as a hub akin to how Ethiopian Airlines (ET, Addis Ababa) has developed Addis Ababa into its own hub and how RwandAir (WB, Kigali) and Air Tanzania (TC, Dar-es-Salaam) are looking to develop hubs in Kigali and Dar-es-Salaam respectively.

According to a proposal seen by The Nation newspaper, Kenya Airways would take over all of KAA's staff and operations including its ground handling, maintenance, catering, warehousing, and cargo services.

In addition, the government may even exempt the national carrier from certain taxes and allow it to retain several levies.


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