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Flights to BurundiMalawi and Rwanda were launched in Kenya Airways was the first African carrier to acquire the type, and they were the first wide-bodies ordered by the company.
By latetwo Boeing s had been leased from Guinness Peat Aviation.
The document stressed the government opinion that the airline would be better off privately owned, thus resulting in the first privatisation attempt.
The government named Philip Ndegwa as Chairman of the Board inwith specific orders to make the airline a privately owned company. Inthe Public Enterprise Reform paper was published, giving Kenya Airways priority among national companies in Kenya to be privatised.
At this time the company had a staff of 2, including engineers, flight crew and cabin crew. Fuel price hedging and the agreement with KLMconsidered intrusive in the running of the flag carrier, took secondary blame. The route partnership with KLM was deemed profitable thus, kept.
Two Boeing B were sold and five newer, leased, airliners were sub-leased to improve cash flow. In a complex deal, stakeholders agreed to convert close to half a billion US dollars in loans to equity, changing the ownership structure.
The government of Kenya, the biggest lender, saw its holdings rise from A consortium of local banks, through a special purpose vehicle called: The airline's employees, through a shareholding scheme, and others own the remaining 5.
In a bid to recover their exposure, syndicated lease holders and banks unsuccessfully fought these measures to restructure the carrier's ownership.NJCPA: Planning for the Future.
Alongside fellow accountants, Sax Partner Bob Hopper was featured in NJCPA Magazine with his contributions to the article “Planning for the Future” which addresses the many steps to consider when putting a succession plan in place. Click here to read the full article. Sustainable Business/Planning for the future.
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