Kenya Airways to rescue Precision Air with $10m

Precision Air employs close to 700 people and is negotiating with the government to swap $9.6 million in unpaid landing fees and other taxes for equity.
  • Kenya Airways (KQ) has agreed to inject $10 million into Tanzania’s Precision Air in a bailout plan.
  • The private carrier hopes proposed bailout will boost its turnaround.
  • KQ agreed to the injection on condition that the airline would sell or lease back five of its remaining nine aircraft, retrench more than a fifth of its staff, outsource some functions and draw up a plan to reduce debts while improving cash flow.
Full story at The East African