Wednesday, 5 February 2014

Kenya Airways in talks to acquire bigger stake in Precision Air

Precision Air (PW, Dar-es-Salaam) is in talks with 41.23% shareholder, Kenya Airways (KQ, Nairobi Jomo Kenyatta), in a bid to raise USD30million in capital needed to keep the struggling Tanzanian airline afloat. According to The East African, the ongoing talks could see Kenya Airways boosting its stake in Precision Air after similar discussions with the Tanzanian government collapsed. “KQ was waiting for the government’s decision. When the government gave us its final decision on the matter, KQ came up with the idea to increase its stake, over which we are still in discussion. Our aim is it get between $20 million and $30 million through equity,” said Precision's chairman, Michael Shirima.
Faced with rising uncertainty about its future, caused largely by a failed 2012 IPO and an overambitious expansion plan, Precision Air has been forced to make drastic cuts to its fleet and route network in recent months as it struggles to stay afloat. Increased competition from Fastjet (FN, Dar-es-Salaam) on domestic routes has also compounded its woes.
Source: ch-aviation

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