Kenya Airways “not selling stake” in Precision Air; Air Arabia extending UAE catchment

Kenya Airways (shares flat) reportedly stated it "is not selling its stake" in Precision Air when the carrier conducts an IPO at the Dar es Salaam Securities Exchange later in 2010. The carrier is seeking to raise approximately USD28 million through the sale of 65% (or 55 million shares) of its authorised but unissued shares.

 The funds will be used to fund acquisitions of new aircraft for route expansion, aimed at capitalising on opportunities created by enhanced regional integration and demand for freight services amid economic expansion. Kenya Airways CEO, Titus Naikuni, stated three firms (Stanbic, Ernst and Young and NIC Capital) have been shortlisted to offer transactional services during the IPO.

See related CAPA profile: Privatisation and Ownership

Air Arabia (-1.7%) announced on Friday (16-Jul-2010) it has launched a twice-daily bus service connecting Ras Al Khaimah with its hub at Sharjah International Airport, as it seeks to build its catchment in the UAE as flyDubai expands from Sharjah's neighbouring emirate of Dubai. The bus service will be timed to connect passengers with Air Arabia's network. Middle Eastern shares dropped slightly on Friday with Royal Jordanian (-1.2%) and Kuwait National Airways (-1%) down.

Selected African and Middle Eastern airlines share price movements (% change): 16-Jul-2010