Pessimistic Kenyans have expressed mixed reactions over the proposed management of Jomo Kenyatta International Airport by Kenya Airways.
Can a struggling national carrier meaningfully and efficiently manage the JKIA on behalf of the Kenya Airports Authority (KAA)?
Again in a ‘merger’, it is not clear what the mandate of KAA will be, whether it will cease to run operations and surrender everything to Kenya Airways (KQ).
The mandate of KAA is to provide infrastructure for aviation services between Kenya and the outside world by controlling and managing aerodromes.
The beneficiaries are many airlines, including KQ.
There is likely to be a conflict of interest if KQ takes over the management of the airport hub from KAA since the national carrier has competitors – other airlines.
Should an airline manage an airport? It would be difficult running an airline and airport at the same time.
In the case of KQ, it is difficult to see how it will successfully manage the airline business and airport.
KQ’s performance has been below par. For example, for the six-month period ended June 30, 2018, it posted a pretax loss of Sh4 billion and for a similar period of a year before, it posted a loss of Sh5.6 billion. Its share price is at Sh8 per share.