Troubled national carrier Kenya Airways could soon merge with the Kenya Airports Authority (KAA) as part of a grand plan to deepen the airline’s recovery and cement Nairobi’s status as a regional transport hub.

A policy paper seen by the Business Daily and which got the Cabinet’s approval on Tuesday, says the aim is to reposition KQ in a similar fashion as its main rivals, including Ethiopian Airlines and Emirates Group, which have relied on government backing to expand their reach.

The move also appears to be in reaction to the financial difficulties the carrier has continued to experience even after last year’s completion of a major financial reengineering drive, causing concern that it may not be able to withstand competition in the very near future.

“Should matters remain in the current state, KQ, the biggest revenue driver for JKIA [Jomo Kenyatta International Airport], may collapse or significantly reduce operations within the next year and JKIA will downgrade and eventually be relegated to the status of a regional airport as no foreign carrier will develop JKIA for the benefit of Kenya,” KQ and the KAA said in a proposal document to the Cabinet.