berari
Topic Author
Posts: 178
Joined: Wed Jul 06, 2016 3:47 pm

KLM's investment and partnership changes in Kenya Airways

Mon Jul 17, 2017 3:26 pm

KLM will see its shareholding fall from 26.73 per cent to 13.71 per cent, while the State’s stake in the cash-strapped airline has inreased from 29.8 per cent to 46.53 per cent. The Government, through the National Treasury Cabinet Secretary, will be allocated 13.9 billion shares. “In addition, KLM and KQ will be amending their long-standing joint venture agreement to further enhance the benefits to the company. Under the proposed cooperation agreement, the shareholders agreement entered into between the Government and KLM at the time of KLM’s initial investment in the company in 1995 will be terminated,” said the airline in a circular signed by the board’s chairman, Micheal Joseph.
Read more at: https://www.standardmedia.co.ke/busines ... vival-plan


Does anyone know what the particulars of the joint venture are? I am certain it includes the AMS-NBO route, but also recall reading a while ago that it includes other East African destinations like EBB, DAR.
 
MileHFL400
Posts: 178
Joined: Sat Dec 05, 2015 11:42 am

Re: KLM's investment and partnership changes in Kenya Airways

Mon Jul 17, 2017 5:16 pm

Frankly I see KLM's influence on KQ waning going forward
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FlyRow
Posts: 37
Joined: Mon Mar 21, 2016 10:05 pm

Re: KLM's investment and partnership changes in Kenya Airways

Mon Jul 17, 2017 7:52 pm

I hear kenyans aren't happy with it as KLM doens't use NBO as a hub as much as they could, by flying to JRO/DAR/KGL/EBB for example themselve.

However, even with the new terminal, transfering in NBO isn't a dream and I can see KLM wanting to use there own metal.
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jfk777
Posts: 6194
Joined: Tue Aug 22, 2006 7:23 am

Re: KLM's investment and partnership changes in Kenya Airways

Mon Jul 17, 2017 9:14 pm

This is a KLM legacy investment left over from before merged with Air France.
 
berari
Topic Author
Posts: 178
Joined: Wed Jul 06, 2016 3:47 pm

Re: KLM's investment and partnership changes in Kenya Airways

Mon Jul 17, 2017 10:40 pm

jfk777 wrote:
This is a KLM legacy investment left over from before merged with Air France.


KLM's shareholding is falling from 26.73 per cent to 13.71 per cent, while creditors and the Kenyan government become the largest shareholders. I'd wondered about what's in it for KL, that it's sticking through KQs misery. The article below from 2013 outlines the JV that KL and KQ have:

The successful cooperation between KLM and Kenya Airways dates back to 1995. In 1997, they initiated a joint venture on the Amsterdam – Nairobi route, and in 2008, expanded the joint venture with the addition to flights between JKIA and Charles de Gaulle Airport in Paris, France. Currently, Kenya Airways and KLM operate a daily service between Schiphol Amsterdam Airport and the Jomo Kenyatta International Airport in Nairobi. The airlines jointly operate 19 weekly return flights between The Netherlands, France and Kenya.

From next year, the cooperation will be expanded through the addition of the London – Nairobi; Amsterdam –Entebbe/ Kigali route; Amsterdam – Lusaka and Harare routes; and the Amsterdam-Kilimanjaro/Dar-es-Salam route, the latter subject to regulatory approval. This will bring the total number of frequencies operated jointly by Kenya Airways and KLM to approximately 44 weekly flights with combined revenues exceeding US$500 million.

http://news.klm.com/klm-breidt-samenwer ... ys-uit-en/


If I understand this correctly, KL has a hand in all of KQ's operations to Europe and with the above, beyond the latter's Nairobi hub. Could Kenya Airways have done better without KL?
 
Jetty
Posts: 233
Joined: Wed Nov 11, 2015 12:27 pm

Re: KLM's investment and partnership changes in Kenya Airways

Mon Jul 17, 2017 11:57 pm

jfk777 wrote:
This is a KLM legacy investment left over from before merged with Air France.

:checkmark: Also this is a investment by KL alone, and not AF/KL as one might expect; the shares have never been transferred to the holding.

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