KQ’s subsidiary intends to rely on bail out plan
Posted Thursday, October 17 2013 at 01:00
The firm’s financial issues are still under discussion.
Precision Air, the Tanzanian-based subsidiary of national carrier Kenya Airways (KQ), is keeping hopes of a State bailout alive even after a minister was quoted saying the government would not inject any cash into the airline.
Precision Air is seeking $32 million (Sh2.8 billion) funding from the Tanzanian government to keep it afloat.
Tanzanian Natural Resources and Tourism minister Khamis Kagasheki was, however, quoted this week in The Citizen newspaper saying the government would not honour Precision Air’s request.
Managing director of the airline, Sauda Rajab, said the Tanzanian government had not responded officially to the bailout request, but indicated the request was made to the Ministry of Transport.”