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Kenya Airways sues airport authority over fire, demands $3.8 million compensation

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Published on : Aug 14, 2014

Forced to cancel flights due to a fire last year, Kenya Airways has demanded $3.8 million compensation from the airport authority stating revenue losses. Kenya Airways has claimed that the Kenya Airport Authority did not have adequate fire-fighting equipment at the airport due to which they had to shut operations. KAA, on the other hand, has said that they were still in negotiations over insurance claims and have not yet been summoned by the court over the issue. 

When the fire broke out at Nairobi’s Jomo Kenyatta International Airport on August 7, the response from rescue officials was allegedly slow and uncoordinated. The fire hydrants were dry and sprinkler system was absent, causing the blaze to spread rapidly in the building. The international arrivals building was completely destroyed, forcing Kenya Airlines and other passenger aircrafts to cancel flights and temporarily close the travel and trade gateway to East Africa. Investigation revealed the fire was caused due to an electrical fault and Kenya Airlines estimated its revenue losses to be $4 million during the incident.

Following news of the lawsuit, shares of the airlines rose 4.39% to 10.70 shillings, reviving its weakened stock. The fire had drastically impacted and reduced tourist inflow as it was peak season for the country, affecting the horticulture industry too. 

In other news, Kenya Airways has also planned to start flights to countries in West Africa that have been affected by the Ebola epidemic. Based on recommendations and warnings from the World Health Organization, Kenya Airlines has taken all precautions to minimize the risks.

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