State shops for consultant to turn around Kenya Airways

The Government has invited experienced firms with technical advisory expertise in the strategic and recovery of the airline industry to submit bids in the recovery plan of Kenya Airways dubbed KQ turnaround strategy.

This comes at a time when the government is implementing a restructuring programme aimed at stabilisation and recovery of its business.

According to the State Department of Transport in the Ministry of Transport, Infrasructure, Housing and Urban Development, the restructuring of the airline is progressing well and has reached a critical state where strategic decisions need to be made, particularly with regard to the business focus of a restructured airline.

The scope of work will involve advising the Government of Kenya on aspects of the restructuring and turnaround strategy in Kenya Airways. “At this critical state there is need and urgent services of an independent Technical Advisor (TA) to advice the Government of Kenya on all the aspects of the restructuring transaction and turnaround strategy of an organisation,” said the Ministry.

The move comes after KQ Chairman Amb Dennis Awori stepped down yesterday and had his position taken over by former Safaricom CEO Michael Joseph. This has seen the airlines’ shares on the Nairobi Stock Exchange go up -from about to the current Ksh6.5 per share from  about Ksh5.5 last month.

According the Request for Proposal (RFP) advert by the State Department of Transport in the Ministry of Transport, Infrastructure, Housing and Urban Development, interested firms or lead consultant(s) should possess at least 15 year’s global experience in Airline restructuring.

This should be with specific reference to the processes, tools and the competitive landscape facing airlines, business plan and organisational structure review, and revenue management and commercial diagnostic engagement,

They must also be able to develop synergy between stakeholders (lender/lessors, debt holders, labor, vendors, original equipment manufacturer (OEMs) in support of the restructuring plan.

Other requirements include extensive experience in implementing aggressive cash conservation programmes in large scale strategic turnarounds, refinancing or merger support in the aviation sector and adequate capacity of professionals with over 20 years of extensive airline & restructuring experience, technical experts, consultants.

In the last few years, there has been a decline of Kenya Airways business and persistent loss. The decline of business has resulted into extreme financial difficulties threatening the company’s survival.

Kenya Airways PLC is the national carrier founded in 1977, after dissolution of East Africa Airways and was wholly owned by Government of Kenya until April, 1995 but was privatised in 1996 and is currently a Public Private Partnership company, with Government of Kenya being the largest shareholder to a tune of

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