Kenyan set for massive capacity expansion
25 / 03 / 2012
KENYA Airways plans to invest US$3.6bn in new aircraft and routes to cash in on the growth in cargo between Africa, China and India.
Trade in all three markets has been expanding at an annual rate of about 200 per cent, chief executive officer (CEO) Titus Naikuni says.
“We are looking at African markets and Asia, India. We need to connect these three landmasses,” he adds.
The carrier, which is 26 per cent owned by Air France-KLM and is ranked as one of Africa’s largest airlines, plans to raise $250m to fund its ambitious capacity increase. The remaining sum needed will be generated from internal resources.
“I’m expecting that subscriptions will be 100 per cent if not more. It is going to be a success,” Naikuni explains.
“What we are looking for is about $125m. We have been out in the marketplace and a number of foreign investors are very keen. That is what makes me very optimistic.”