4 Jul 2019 in National Assembly:
I was happy that a Member, who was working in one of the airlines, supports our proposal. One of the problems we entered into is leasing because it is expensive. The model KQ was operating on was because of bad financial books so they had high risk of exposure and that is why they were charged highly. With the new approach, this risk will reduce. Therefore, they will renegotiate the leases and fuel levy, and we will have equilibrium. With those few remarks, I want to thank the House for supporting the Committee. I want to assure Members that we ...
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3 Jul 2019 in National Assembly:
Thank you, Hon. Temporary Deputy Speaker for giving me this great opportunity to move this very critical Report which will give direction in the aviation industry in this country. Hon. Temporary Deputy Speaker, I beg to move the following Motion:
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3 Jul 2019 in National Assembly:
THAT, this House adopts the Report of the Departmental Committee on Transport, Public Works and Housing on the Inquiry into the proposed Kenya Airways’ Privately Initiated Investment Proposal to Kenya Airports Authority, laid on the Table of House on Tuesday, 18th June 2019.
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3 Jul 2019 in National Assembly:
The Committee considered the submissions made by the stakeholders. It took our Committee more than six months of public participation. We were always up and down. We heard those stakeholders and noted that the Privately Initiated Investment Proposal (PIIP) which originated this discussion does not present a viable option for restoring Nairobi as the civil aviation hub of choice in Africa and the whole world.
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3 Jul 2019 in National Assembly:
The Committee further noted that taking into account Kenya Airway’s (KQ) financial status and the current lack of competitiveness in Kenya’s aviation industry, the Government and the people of Kenya stand to lose the most in the event that the trend is left unchecked or to continue, noting that KQ’s debtors enjoy a sovereign guarantee of up to Kshs75 billion. Appreciating the policy adopted by the Cabinet through a Cabinet memo with regard to consolidation of the country’s aviation assets and re-establishment of Nairobi and Jomo Kenyatta International Airport (JKIA) as a competitive international aviation hub, the Committee recommends the ...
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3 Jul 2019 in National Assembly:
The third, fourth and fifth recommendations in our report touch on the proposed amendments, should this Report be adopted. Those are the legal provisions that we are seeking to be able to operate the new institution. This is going to be historical. Therefore, those recommendations touch on the specific parts of legislation that we will be seeking to move should the House adopt the Report, so that we can operationalise that very important institution. The sixth and very important recommendation further clarifies some of the recommendations that we are making so that we can even uplift the national carrier, which ...
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3 Jul 2019 in National Assembly:
One, we found out that Kenya is losing its market in aviation. We are losing our competitiveness in Africa. What demonstrates that? What was presented to this Committee is as follows: Within the last six years, the share of traffic at JKIA in East Africa dropped from 50 per cent to 34 per cent. That is not something to celebrate. It cannot be celebrated. Bole International Airport, which is our closest neighbour in Ethiopia, grew its market share from 30 per cent to 44 per cent. If you look at the mathematics, they were actually taking our share. In policy, ...
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3 Jul 2019 in National Assembly:
First, we realised that the competitors of KQ around Africa are national. Why? They benefit from Government subsidy and that is why they can reduce the cost of the air tickets way below that of KQ. The reason why KQ tickets are high is because they are not getting subsidised by the Government. They are not a national airline. So, the bone of contention is how a private airline can get Government subsidy? We realised in the interviews and our research that airlines which are not getting government subsidies are making losses. One of them is Kenya Airways. Another one ...
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3 Jul 2019 in National Assembly:
The model upon which KQ is operating is very uncompetitive in the region. Other countries are playing monkey business with us. It cannot be business as usual. That is why we took the nationalisation route so that we can agree as a people that KQ is our national resource and we need to help it as a Government. If we succeed and the House agrees with us and it gets The electronic version of the Official Hansard Report is for information purposes only. Acertified version of this Report can be obtained from the Hansard Editor.
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3 Jul 2019 in National Assembly:
Government subsidy, the cost of air tickets will come down. Apart from us parliamentarians who are forced by Government to travel by KQ, other people do not want to travel by KQ because it is very expensive. Now we have found the reason. So, should the House agree with us and we give it subsidies, we will enjoy and the cost of our tickets will be cheaper than those of Emirates and the Ethiopian Airlines. We will bring many people to Nairobi and make our money as a country from the multiplier effect of having the best airline.
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