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Business Daily Date: 29.12.2016 Page 7 Article size: 335 cm2 ColumnCM: 74.44 AVE: 141444.44 ?AVIATION Kenya Airways listed as one of the carriers gunning for a stake of up to 49pc in the ailing airline KQ among firms eyeing Air Madagascar slake BY MUGAMBI MUTEGI and Kenya Airways are among four of Consultants to select a suitable strategic the last seven finalists at the opening of partner, marking the next stage in the the bids," Gilles Filiatreault, Air Mada rescue plan. "We are on schedule. Air Madagascar gascar's general manager, is quoted as will resume its takeoff in the first quarter saying by the Madagascan press. its fortunes. The management of KQ, as the airline of 2017 with its new strategic partner," The management of the cash is known by its international code, did said Benjamina Ramantsoa, Madagas strapped Air Madagascar recently dis not respond to the Business Daily's que car's minister of transport. closed that Kenya Airways, Air Austral, ries on the matter by the time of going to Ethiopian Airlines, Air Mauritius and press. Air Madagascar, which is majority Daily flights National carrier Kenya Airways has been shortlisted among seven airlines interested in acquiring a minority stake in Air Madagascar, which is looking for a strategic partner to help turn around South African Airlink are some of the owned by the Madagascan government, Kenya Airways, which operates daily flights to Madagascar, is bidding for a Madagascar is an island nation in the stake in the ailing airline even as it looks carriers gunning for a stake of up to 49 was founded in 1947. per cent. The government of Madagascar, with Indian Ocean off the southeastern coast to stabilise its business back at home. financing from the World Bank, is seek of Africa. Its national carrier has a fleet KQ's business has in recent years ing a strategic investor "willing to invest of 13 aircraft which fly to 18 destinations come under pressure due to expensive in the company by taking minority equity loans, low tourist numbers, and the Ebola including Paris, Marseille, Mauritius, shares and by bringing knowhowto the outbreak in West Africa among several Comoros, Reunion, the Seychelles and airline as well as committing to run it." other negative factors. Mayotte as well as 11 domestic routes. Kenya Airways' interest in owning The national carrier is implementing The carrier has 1,117 employees and a piece of the Madagascar national car a McKinseybacked restructuring plan is based at Ivato International Airport rier, and helping to revive it, comes at a which has led to interventions like sale in Antananarivo, Madagascar's capital time when it is itself in desperate need or lease or aircraft, balance sheet restrict city. of about Sh60 billion to recapitalise the ing and staff cuts, aimed at steering the Air Madagascar says it needs about lossmaking business. business back to profitability. $25 million (Sh2.5 billion) in the form of The airline, which is 29.8 per cent Mbuvi Ngunze, the airline's chief owned by the Treasury and 26.7 per cent a loan to rescue the company burdened executive, has in the past said Kenya owned by Air France KLM, has posted by highcost debts, an ageing fleet, high Airways requires about Sh60 billion in staff costs and unprofitable routes. A new four consecutive fullyear losses begin a mixture of equity and debt to plug its board and management has already un ning March 2013. huge capital hole. dertaken a reduction in routes and costs. In the year to March, KQ posted a The airline's precarious financial situ net loss of Sh26.2 billion. "Air Austral, The government of Madagascar recently ation makes its interest in a slice of Air Air Mauritius, South African Airlink engaged Dubaibased TroyAvi Aviation Madagascar unusual. Ipsos Kenya Acorn House,97 James Gichuru Road Lavington Nairobi Kenya Business Daily Date: 29.12.2016 Page 7 Article size: 335 cm2 ColumnCM: 74.44 AVE: 141444.44 A Kenya Airways plane. The airline's precarious financial situation makes its interest in a slice of Air Madagascar unusual, salatonnaju Ipsos Kenya Acorn House,97 James Gichuru Road Lavington Nairobi Kenya