The Kenyan government is being encouraged to take over Kenya Airways as the airline struggles to make profit.
On Tuesday a Kenyan parliamentary committee recommended the nationalization of the loss-making airline.
Kenya Airways has recorded losses for three consecutive years and is currently going through restructuring.
The proposal according to the parliamentary committee should be able to turn the fortunes of the airline around.
In a draft report the committee asked that an aviation holding company be set up with four subsidiaries.
One of the subsidiaries will be Kenya Airways and another expected to run Jomo Kenyatta International Airport.
In the past Kenya limited the issuance of new licences for global airlines seeking to exploit the Nairobi hub.
It was a protectionist move by the state aimed at reviving the dwindling fortunes of national carrier.
Investment in Aviation
Kenya recently invested in the expansion and upgrading of Jomo Kenyatta International Airport.
That made Nairobi one of the premier aviation hub connecting Africa with Europe, the Middle East, Asia and the Far East.
Making sure that the Kenya Airways becomes a viable airline has become a priority for the government.
Kenya Airways in 2018 announced that it had started daily direct flights to the United States to boost its annual revenue.
This year Kenya Airways started holding talks with three other airlines namely the South African Airways, Air Mauritius and Rwanda Air to form an alliance.
The four African Airlines wanted to mount stiffer competition in the airline industry in Africa with such an alliance.
Aviation experts believe the alliance if formed could allow the airlines to create a consolidated network using the individual strengths of each to offer passengers more value for money.
Source: Africafeeds.com
