Kenya: Adani's Proposed Takeover Deal of JKIA Triggers Millions in Airline Losses

12 September 2024
Business Day Africa (Nairobi)
By Gerald Andae

Kenya's Jomo Kenyatta International Airport (JKIA) faced significant disruptions on Wednesday after aviation workers halted operations in protest against the proposed 30 year lease plan by India's Adani Group, leading to millions of dollars in losses due to flight cancellations and delays.

The strike, initiated by workers affiliated with the Kenya Airports Authority (KAA), came in response to plans to modernise the airport through the partial acquisition by Adani Group, which has raised concerns about potential job losses.

The industrial action led to the suspension and cancellation of flights by major airlines, including Kenya Airways, RwandAir, Ethiopian Airlines, and Uganda Airlines.

RwandAir announced the immediate cancellation of flights, while Uganda Airlines issued a statement warning of possible delays and disruptions in its regional schedule.

"Due to the ongoing strike by airport staff at Jomo Kenyatta International Airport, our flights WB452/WB453 KGL/NBO/KGL on September 11, 2024, are canceled. All affected passengers will be rebooked on the next available flights. We apologise for any inconvenience caused," RwandAir said in a post on X.

In response to the strike, the Kenyan government held an urgent meeting with KAA employees' union officials, resulting in a temporary suspension of the strike for ten days to allow for further discussions.

The union released a statement outlining the conditions of the suspension, emphasising that the final agreement on the airport's lease would not be signed without their concurrence.

Kenya's aviation regulator, the Kenya Civil Aviation Authority (KCAA), issued a Notice to Airmen (NOTAM) warning of ongoing disruptions for arrivals and departures at JKIA and advising pilots to anticipate delays.

The strike was called at midnight on Wednesday after reports emerged that the Kenyan government had moved ahead with the leasing of JKIA to the Adani Group for 30 years despite the workers opposition.

The Kenya Aviation Workers Union (KAWU) fears the transaction could lead to significant job losses among airport workers.

Uganda Airlines, which operates two daily flights between Entebbe and Nairobi, and RwandAir, which flies three times daily from Kigali to Nairobi, were among the carriers affected. Ethiopian Airlines, with four daily flights in and out of Nairobi, also faced disruptions.

Read the original article on Business Day Africa.

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