A Kenya Airways carrier. [Photo/the-star.co.ke]
The controversial KLM agreement with Kenya Airways signed in 1996 is now set for a major overhaul.
KQ is set to sign a new deal as a joint venture with KLM Royal Dutch Airlines early next week.
The deal will replace the controversial agreement signed in 1996 during privatisation of KQ, in which the Government ceded control and gave it to KLM.
Among the major changes in the new agreement include the addition of Air France (which merged with KLM in 2004) to make the KLM-KQ joint venture a three-way agreement.
According to Kenya Airways chairman Michael Joseph, some financial clauses will be revised, with KLM making major concessions.
The deal has been a major source of pain for Kenya Airways and senior officials at the company have admitted as much.
They note that there are areas that needed to be re-looked.