ABSTRACT
This chapter focuses on the financial aspects of airline privatisation. A flotation is only possible where there is a strong domestic equity market and the local stock market regulations can be complied with by the airline. Kenya Airways would connect to KLM’s Nairobi-Amsterdam flights from 11 African points. A trade sale was completed with British Airways, who took 9 per cent of the total equity, and American Airlines who took 1 per cent. The Spanish Government retains a ‘Golden Share’ for five years from the date of the sale, with an option to extend two years. The exercise of employee allocation warrants and conversions decreased the State’s stake to 56.8 per cent at end March 2000, and to 54.9 per cent at end March 2003. The next stage in the privatisation which reduced the French Government stake from to 50 per cent was the acquisition of KLM.
