Kenya Airways: A new beginning !

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Kenya Airways has listed additional shares on the Nairobi Securities Exchange to enable a share split and simultaneous consolidation of the company’s stock, closing the intricate financial and capital restructuring process – the first of its kind in this market – and securing the airline’s future.

The restructuring saw the Kenyan Government increase its share holding to 48.9% of ordinary voting shares with the consortium of local banks through a special purpose vehicle  – KQ Lenders Company 2017 Ltd – owning 38.1% of the airline’s shares (after having the debt owed to them converted into equity).

KLM, as a result of its in-kind contribution, will have a shareholding of 7.8%, and the balance of 5.2%, goes to shareholders and a new employee share ownership plan.

Speaking during the bell-ringing ceremony to start the relisting of the shares at the Nairobi Securities Exchange trading floor, CEO Kenya Airways Sebastian Mikosz said:- “This occasion demonstrates another step towards securing the airline’s growth, which will be anchored by operational efficiency and financial sustainability. The restructuring makes us competitive, and sets us on a path to profitability with a healthy liquidity. We appreciate all the work that went into ensuring that we continue to turn this airline around, and secure its future”.

Mikosz reassured stakeholders and shareholders that the airline is on a growth path having reported a 52.1% increase in operating profit to Ksh 1.443 billion for the period ending 30 September 2017, compared to Ksh 0.9 billion in the prior period. Its cabin factor grew by 5.4% with passenger numbers going up by 3.3% to 2.31 million. Loss after tax reduced by 20.5% to Ksh 3.8 billion from 4.78 billion. Kenya Airways PLC will continue to be listed on the Uganda and Tanzanian stock exchange s as well.

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Juergen Thomas Steinmetz has continuously worked in the travel and tourism industry since he was a teenager in Germany (1979), beginning as a travel agent up through today as a publisher of eTurboNews (eTN), one of the world’s most influential and most-read travel and tourism publications. He is also Chairman of ICTP. His experiences include working and collaborating with various national tourism offices and non-governmental organizations, as well as private and non-profit organizations, and in planning, implementing, and quality control of a range of travel and tourism-related activities and programs, including tourism policies and legislation. His major strengths include a vast knowledge of travel and tourism from the point of view of a successful private enterprise owner, superb networking skills, strong leadership, excellent communication skills, strong team player, attention to detail, dutiful respect for compliance in all regulated environments, and advisory skills in both political and non-political arenas with respect to tourism programs, policies, and legislation. He has a thorough knowledge of current industry practices and trends and is a computer and Internet junkie.