KQ set to benefit from KLM’s investment plans

By AGENCIES

AFTER announcing a 53 per cent slump in net profits last week, Kenya Airways now stands to benefit from a growing focus on African investments by the Dutch national airline KLM.

KLM, which is also the second biggest shareholder of KQ after the government commanding a 26.73 per cent stake in the firm, said on Tuesday that it was shifting its investments focus to Africa in the wake of the ongoing Euro zone economic crisis, which has discouraged investors.“We are facing a bad economic crisis in Europe and have had to cut local investment.

Instead, we are going to invest more in Kenya and Africa through our partner Kenya Airways,” said KLM group MD Camiel Eurlings.He added that the company has put in ‘one of the biggest investments in recent times’ towards the expansion of KQ to be able to handle KLM growth strategies for the continent.

“We want to conduct more expansion in Africa via Kenya Airways who are already our partners.

We are aware of the huge competition from Ethiopian Airlines and Middle East carriers, who benefit a lot from government funding but KQ should win the markets because of its location, natural resources and connections to the rest of Africa,” said Eurlings adding that KQ’s profit slump was expected since the whole aviation industry is going through rocky times.