According to The East African, KQ will sell off 15% of its stake in Precision Air on the DSE & NSE...

This should give KQ some cash... Will KQ distribute it to us? Or will it simply keep it?

It seems Precision Air is fighting a battle to become the official National Airline of Tanzania...

I think Precisionair is short of cash and now they are looking for other means to get funds, half of their ATR fleet is down due to maintenance or awaiting spares.

Kenya Airways has a say 100% on PA , they have a leased B737 and KQ does not allow them to use it anywhere else except use it on KQ flights of DAR to/from NBO.

PA wanted to start to Luanda and JOburg, they were told not to do so.

PA should never be a national airline , otherwise it's like saying Kenya Airways is a national airline of Tanzania and Kenya

@vvs, I think the minimum one can offload of a company on the bourse is 20%. KQ owns 49% of PW, so if they offload 20% they remain with 29%. But this will be cash for KQ, not PW, unless KQ and the other shareholder agree to create new shares for the market, which is the best route to raise cash for PW operations.
KQ reducing its stake is OK as long as they can still take advantage of PW as a feeder airline. They might also loose management control - out goes Kioko the MD and what does this portend for PW?
Im not aware of the ATRs being grounded, what I suspect is they are replacing the ATR42 with the ATR70.
On a side note, ATC (the Tanzanian national airline) has broken off with some chinese investors. Remember they previously broke off with SAA. And they are now tying up with Air Zim, a case of two dying horses going to the grave together? They should never have refused the tie up with KQ - remember it is after that debacle that KQ bought into PW and see where PW now is....(I have seen PA grow. As a regular on the Mwanza route I started off with a LET410, now they deploy the Embraer on that route)

@GG - If PW wanted to raise cash then they should have had a pure IPO/new issue... I think the IPO (or Offer For Sale) is to 'force' the TZ government to make PW a 'national airline' for additional routes esp Luanda & S.Africa...

TZ has insisted on keeping a defunct ATC as the national airline. Stupid pride. Or corrupt. Probably both then some!

The 15% is from The East African. It might be listed on DSE then cross-listed on NSE. We will have to wait to get details.

Bw. Shirima is a big shot lakini he might have run into headwinds. He controls the group that owns 51%. Did you know he is also a shareholder in CF Union Bank (50% owned by I&M Bank) thus getting loans for buying aircraft is easy because of Proparco.

@tony - Never used coastal aviation but PW has far more extensive network.

It has been denied operation as a 'international' airline. The DSM-NBO flights are run by PW but using KQ's rights...