KENYA AIRWAYS IS close to selecting a strategic airline-partner, with KLM understood to have joined front runners British Airways and South African Airways (SAA) among the final bidders.
Submissions were handed in on 3 November, with a winner due to be selected, on 30 November, at a meeting of Kenya's privatisation committee and the airline's board of directors. The decision will then be forwarded for final approval by the Kenyan Government.
A stake of up to 20% is being offered in the restructured and increasingly profitable Kenyan carrier as a prelude to its privatisation. The plan is for a flotation on the Nairobi stock exchange, once the airline partner is in place.
BA is widely tipped as the leading candidate in the race, given traditional ties and the volume of traffic between the UK and Kenya. BA's Speedbird consultancy has also helped to manage the transformation at Kenya Airways over the past three years, including putting Brian Davies in place as managing director. Kenya Airways has suggested that the new partner could emerge with a management contract to help run the airline.
SAA is also a strong contender, and has been keen to re-assert its presence in Africa following the re-emergence of South Africa from political and economic isolation. SAA's involvement with Uganda and Tanzania in the potentially competitive Alliance consortium could complicate its bid, however.
KLM is a less obvious bidder, but could win on a compromise candidate between the UK and South African bids. A surprising omission from the final line-up is Lufthansa, which had been strongly tipped to bid through its charter subsidiary, Condor.
Source: Flight International
