Kenya Airways chairman Michael Joseph has said it makes more operational and financial sense for the airline to run JKIA.
This includes ground handling, maintenance, catering, warehousing, and cargo.
“If we are allowed to operate JKIA, we will have one source to re-invent the airport and build economies of scales,” Joseph said.
Speaking to the Star on phone, the ex-Safaricom CEO said the airport needs necessary improvement in its terminals and facilities that have been wanting for the last 15 years.
Some of the pressing issues he quoted include the introduction of high speed turns at the runaways and upgrading or investing in new terminals. Others are the creation of more check-in desks, management of temperature sensors, and the need to create an easier passenger flow.
He refuted claims that the airline has no financial muscle to run the airport, noting that since they took over its management, the losses made five years ago have been declining.
According to him, a successful takeover of the airport means KQ will be at a level playing field with its competitors. Joseph cited Ethiopian Airlines, Emirates, and Qatar Airways, which use a similar model to the proposed one in their hubs.
“All our competitors’ airports and airlines are state-owned, state-controlled, state subsidised and managed for the benefit of the airline. We are the odd one out,” he added.
Since June 2018, the airline has been making attempts to take over JKIA management for the next three decades.
On Wednesday, KAA launched a public participation drive on the proposal by KQ that has since been approved by the Cabinet.
KAA managing director Jonny Andersen said they received a Privately Initiated Investment Proposal (PIIP) from KQ on October 3 last year to be granted a concession to operate and maintain the airport.
“We have appointed a transactional advisor to advise on the PIIP including carrying out comprehensive due diligence and an evaluation of the same,” he said.
Joseph said the move is not exclusively for the benefit of KQ or KAA since the airline will still pay the authority the concession fee for the 30 years.
“We will still pay them, and they will still benefit from the revenue because they can’t run the other airports without JKIA...they will collapse,” he said.
The public participation will first be held in Kisumu on January 30, followed by Eldoret, Mombasa, Wajir, Lodwar to culminate in Nairobi on February 13.