Saturday, 11 February 2012

Kenya-Airways in the largest Rights issue in EA

A KQ aircraft.The youngest fleet in Africa

Kenya Airways’ will soon raise US$262 million through a rights issue floated in the three securities in East Africa by the end of this first half of this year. The Kenyan national carrier is cross-listed in the three exchanges.

The issue, the largest in East Africa is meant to support the airline’s 10- year expansion plan. The plan incorporates both fleet and destination expansion. The airline plans to raise its fleet to 107 aircraft by 2020 from the current 37 aircraft<its plans to acquire twelve cargo freighters by 2022.

Kenya Airways is the most profitable and successful privatized airline in Africa. In fact it is a case study of successful airline privatization. It is owned 23 per cent by the Kenya government, 26 percent by the Dutch Airliner KLM, and 51 per cent by local investors.

The airline has already ordered Nine Boeing 787 Dreamliner to be delivered in the next three years or so. It has the youngest fleet in Africa with many of its aircraft being less than 5 years old.
Kenya Airways or KQ as it is popularly known. It flies to 56 destinations world wide. 41 of these are in Africa. It plans to increase its destinations to 115 destinations from the current 56.

The rights issue is expected to boost the number of shares at the Uganda and the Dar es Salaam bourses.

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