• Short Summary

    Recent newspaper investigations and allegations in Tanzania, Kenya and Uganda have sparked off widespread speculation over the commercial future of East African Airways (EAA).

  • Description

    Recent newspaper investigations and allegations in Tanzania, Kenya and Uganda have sparked off widespread speculation over the commercial future of East African Airways (EAA).

    The financial position of EAA has been under public scrutiny for several weeks following allegations in Kenyan newspapers that the airline is indebted to banks and traders to the tune of come 12 million pounds sterling.

    Accusations of gross inefficiency and careless spending have added weight to the rumours, and last week the National Bank of Kenya sparked off the crisis by refusing EAA further credit.

    A special meeting in Nairobi on Friday (24 December) was convened to discuss the problem. Ministers form all three Community countries attended at the request of the Kenyan Government.

    SYNOPSIS: A crisis sparked off by rumours and newspaper allegations over the commercial future of East African Airways led to a special meeting of East African Community Minister in Nairobi on Friday. Accusations of gross inefficiency and careless spending added weight to the rumours, and there was public criticism over the maintenance of "prestige" routes to New York and Hong Kong. There routes wore recently abolished and last week's news that the National Bank of Kenya is to refuse the airline further credit led to a special meeting at the request of the Kenyan Government.

    The feeling among all three Community Governments is reported to be that the airline should be kept going, if only for the prestige of the Community. On Friday, Government Ministers from Kenya, Uganda and Tanzania met in Nairobi to discuss possible stops for the airline's commercial future. Newsmen have speculated that there will be a complete change in the system of running the airline and a severe management shake-up.

    Tanzania has already indicated her willingness to provide funds to keep EAA running. Other suggestions have called for a foreign airline to run EAA--as is countries. The crisis comes at a time when another multi-national airline, Air Afrique, is in financial trouble. A total on ??? African countries have a stake in that company.

  • Tags

  • Data

    Film ID:
    VLVA7B61OJLD4V2S11MI5AWMM7N92
    Media URN:
    VLVA7B61OJLD4V2S11MI5AWMM7N92
    Group:
    Reuters - Incuding Visnews
    Archive:
    Reuters
    Issue Date:
    26/12/1971
    Sound:
    Unknown
    HD Format:
    Available on request
    Stock:
    Colour
    Duration:
    00:01:19:00
    Time in/Out:
    /
    Canister:
    N/A

Comments (0)

We always welcome comments and more information about our films.
All posts are reactively checked. Libellous and abusive comments are forbidden.

Add your comment