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{
    "id": 645583,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/645583/?format=api",
    "text_counter": 102,
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    "content": "(3) Whether KQ has implemented the resolution of the Senate of 3rd December, 2015, arising from the Report of the Ad hoc Senate Committee that inquired into the affairs of Kenya Airways Limited and its subsidiaries. (4) Why KQ has sold off its prime morning landing slot at London’s Heathrow Airport. Appendix 1 of this Report contains the financial report for the business for the half year up to September, 2015. Kenya Airways is quoted on the Nairobi Stock Exchange (NSE) and regulated through the Capital Markets Authority (CMA). The next release of financial results will be for the year ended 31st March, 2016 and will be ready in July, 2016. As an overall commentary, there has been a significant improvement in the underlying business, with a reduction in the losses comparing the two years. This demonstrates that the underlying business is sound. The losses are increased by three significant impacts; additional borrowing by the company to finance working capital, deterioration of the Kenya Shilling against the dollar and huge losses on fuel as a result of the reduction in international oil prices. On the status of the Kenya Airways grounded planes, two planes of the 777-220 series have been sold to Omni Air International (US). Two others are pending sale and have been actively marketed through the Kenya Airways sales agent, Cabot Aviation. An agreement for sub-lease of the 777-300 series has been reached with Turkish Air and is awaiting implementation. One 787 series aircraft has been transferred while a second aircraft will be transferred in May, 2016 to Oman Air for three years, as part of an agreement on slot sale. Two E170 aircraft have been returned to lessor, GECAS, as part of early return conditions agreed with them. Regarding the status of implementation of the resolution of the Ad hoc Select Committee on Kenya Airways Limited and its subsidiaries, the Committee recommended that the shareholders inject new capital to facilitate the turnaround of the airline. The process towards recapitalization started in February 2016. Kenya Airways appointed PJT Partners as transaction advisers in the process. The Committee also recommended that the shareholders should provide financial bailout in form of equity under the following conditions:- (a) reconstitution of the board of management by the major shareholders; (b) restructuring and putting into place a management team with sufficient skills and experience in the aviation industry with the ability to turn around and build the company; and, (c) hire a new marketing director with proven international experience to turn around its ticketing system and ensure proper accounting of revenue from market sales. The composition of the board is governed by the Articles of Association of the Company. The company has 11 directors, two representatives of Government of Kenya, two representatives of KLM and five independent directors voted at the Annual General Meeting (AGM) by shareholders. Out of the five, three are less than two years old in the Board, while the chairman and executive director were elected at the AGM in October, 2015. There are only two executive directors in the Board; the Group Managing Director and the Finance Director. The Board regularly evaluates the skills and capability of the The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate"
}