Airline may lose Sh2.4b over licence - Daily Nation

Airline may lose Sh2.4b over licence

Monday December 7 1998

By NATION Reporter

East African Air Safari Limited could lose more than Sh2.4 billion following the suspension of a licence allowing it to operate on routes where the Kenya Airways withdrew its services.

The loss is in the form of future earnings and lost business following the revoking of contractual commitments including the hiring of aircrafts and setting up of a central reservation system.

The firm claims that the government's withdrawal of the licence was contrary to its policy of encouraging competition in commercial air services.

The airline claims that it stands to lose if the Ministry of Transport and Communication is allowed to revoke the designation through a penalty for breaching contractual commitments.

Mr Justice Kassanga Mulwa allowed the airline's chairman, Mr Anthony A. Kegode, to file the suit following an ex-parte application for leave filed by Kamau, Njoroge & Co advocates.

In a supporting statement, Mr Kegode claims that it is against the rules of natural justice for the government to have written to the foreign missions and Kenya Airways informing them of the revoking of the designation yet his firm was not informed that such an action had been taken.