Kenya Airways plans to launch its KSES20.7 billion (USD250 million) share issue on 30-Mar-2012, according to reports in The Standard. Under the rights issue, existing shareholders have first call on the new shares. Shares will then be available for public offer at the Nairobi Securities Exchange (NSE) between 02-Apr-2012 and 18-Apr-2012. The rights issue will close on 27-Apr-2012. The Kenya Government and Air France-KLM have committed to take up their rights, totalling 49% of the offer.
Kenya Airways to launch rights issue this week
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Europe summer 2017 airline capacity outlook: fifth successive summer of above trend seat growth
Airline seat growth from Europe in summer 2017 is set to stay at almost 6% for the third successive summer, according to data from OAG. This rate had not previously been reached since 2010, although this will be the fifth straight summer of growth ahead of its 10 year average rate. The summer 2017 season started on 26-Mar-2017 and, although always subject to further change, the data give a fairly clear picture.
Seat capacity on routes from Europe to Africa will grow the fastest, as the region recovers from a terrorism related drop in demand in North Africa. There will also be above trend growth in almost every other region from Europe (including intra Europe). The only exception is Europe-Middle East, where the newly cautious Gulf airlines' growth is slowing this summer.
On the North Atlantic, always important for the profitability of Europe's leading legacy airlines, growth will be faster than its 10 year trend, but it will at least be a little slower than in the past summer. The loss of market share from the immunised North Atlantic JVs to newer and smaller competitors, including LCCs, is set to continue. As ever, the OAG capacity data provide a window into the changing structure of the airline markets from Europe.
Air France-KLM Group dreams of CDG airline boosting Air France; KLM again makes more profit in 2016
In 2016 Air France-KLM's long haul network generated more profit than the group as a whole. Yet the dependence of Air France-KLM's profits on the long haul business is under threat from more cost efficient competitors, in particular the Gulf based super connectors. Moreover, Air France-KLM's main European competitors IAG, and now Lufthansa, have developed a clear lead in developing commercial partnerships with Gulf airlines.
Air France-KLM's 2016 operating margin was its highest since before the global financial crisis, but remained below its pre crisis peaks and well below the rest of the world airline industry in what was almost certainly a new record year for global margins. Within the group, KLM's margin improved and was again higher than that of Air France, whose margin fell.
The planned new lower cost airline to be based at Paris CDG as a subsidiary of Air France, announced in outline in 2016 under the project name 'Boost', will now include medium haul in addition to long haul routes. This will be vital to setting it back on a path to sustainable profitability – if agreement can be reached with pilot unions to launch it. Even then, its scope and low cost ambitions will be limited.