• Thursday, 19 December 2024
Airlines join bid to reject Adani group proposal to take over JKIA

Airlines join bid to reject Adani group proposal to take over JKIA

Local airlines have rejected controversial plans to hand over the Jomo Kenyatta International Airport (JKIA) to India’s Adani Airports Holdings.

This adds to the numerous voices that have been opposing the company’s Privately Initiated Proposal (PIP).

The Kenya Association of Air Operators (KAAO)—the lobby representing local carriers, including Kenya Airways - said yesterday handing over JKIA to a private operator should be done through a competitive bidding process.

Adani in April made the proposal to Kenyan authorities to take over JKIA through a 30-year concession, over which it would refurbish the airport and invest in new infrastructure but also have a free hand in running affairs at the airport, including hiking passenger fees and rentals, which it noted that are largely undercharged.

KAAO said at its board meeting held October 4, it had considered the proposed JKIA concession at length and concluded it would be a bad deal for the country.

“The board in its deliberations confirmed that it does not support the concession of JKIA as currently conceived, noting further that the stakes are too high for a one-bidder process for such an important strategic asset, and that the credibility of the potential partner is also in question,” said KAAO in a statement.

“It (the board) noted that the best approach in this complex ecosystem would be for a competitive and transparent bidding process with all the steps envisaged in the Public-Private Partnership (PPP) Act correctly followed.”

KAAO further noted that in considering bringing on board a private operator at JKIA, there is a need for a clear vision of the end game for Kenya, which the PIP by Adani fails to address. 

It added that a feasibility study that would inform the way forward for JKIA should involve all stakeholders.

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