Kenya Airways Plans $690 Million Reorganization, Job Cuts
- Carrier to raise 40 billion shillings in debt, equity funding
- Kenyan government has said it will help fund bail-out
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Kenya Airways Ltd., sub-Saharan Africa’s third-largest airline, is planning a 70 billion-shilling ($690 million) restructuring program that includes reducing its fleet and cutting staff, Chief Executive Officer Mbuvi Ngunze said.
The carrier, based in the capital, Nairobi, has been working on a turnaround plan after reporting the largest loss in Kenyan corporate history last year. The carrier plans to raise 40 billion shillings through debt and equity funding as part of its strategy, Ngunze said in an interview aired Wednesday on Citizen TV, a Nairobi-based broadcaster.