Aviation stakeholders have threatened to boycott a planned stakeholder consultation forum on the Privately Initiated Investment Proposal (PIIP) from KQ to manage JKIA for 30 years.
Speaking to Hot News on condition of anonymity, some stakeholders said they will boycott the forum because they have not been provided with details in the (PIIP).
They said they cannot attend a meeting and be forced to participate yet they do not know what the PIIP contains.
“Kenya Airways (KQ) owes the Kenya Airways Authority (KAA) and the Kenya Civil Aviation Authority (KCAA) billions of money. It will be advisable for KAA and KCAA to convert the debts into equity so that they manage KQ. They can help KQ to manage its affairs,” said a stakeholder who requested anonymity.
The Stakeholder who runs several businesses at JKIA said that stakeholders should be given the (PIIP) document to study and be allowed ample time to make decisions.
He said that KAA should consider postponing the meeting.
“Why are they rushing to sell off JKIA which is a public asset and a treasure to the country? What is it that they want to achieve?” he posed.
Other stakeholders said that KQ is poorly managed and that there is no way it can acquire JKIA.
“KQ should be acquired instead and its management streamlined to enhance efficiency,” said Robert Omollo a flight Engineer.
On 28th January, KAA MD Jonny Andersen wrote to all the stakeholders at JKIA requesting them to attend a stakeholder consultation forum on Friday at 9am at Four Points Hotel.
Andersen said the forum will outline details of the (PIIP) and solicit the stakeholder’s views and proposals.
On October 3rd 2018, KQ wrote to KAA a (PIIP) that Andersen said is in line with the public private partnership act no 15 of 2013 laws of Kenya.
“In its (PIIP), KQ requested to be granted concession for 30 years to operate, maintain and develop JKIA which is Kenya’s main airport through a Special Purpose Vehicle (SPV),” Andersen wrote.
The PIIP says that KQ and the SPV will be managed under one management structure.
According to Andersen’s letter to stakeholders, the proposed rights and duties of the SPV as the concessionaire will include,
“Operating, maintaining and developing JKIA. Operating and controlling JKIA assets, revenue sources both aeronautical and non-aeronautical and operating costs,”
KQ will also have to ensure compliance with local, regional and international standards and norms in addition to collecting charges for the use of JKIA by various users.
Andersen wrote to the stakeholders that the assets included in the proposed concessions will be limited to aviation infrastructure only ie , runway, terminals, parking and aprons , car parks etc.
“A PIIP as provided for in the PPP act must satisfy stringent criteria , follow statutory steps and obtain approvals from relevant regulators . Some of the proposals in the PIIP will have direct impact on Airlines operating at JKIA. KAA must therefore satisfy itself that –airlines using the airport have reviewed and responded to the proposals,” he said.
However, early his week, KQ said the proposal to acquire and manage JKIA is aimed at making the Airline competitive in the region and ensuring it has more income.