(Ecofin Agency) - Kenya Airways is negotiating with foreign institutional investors about buying a stake in its capital, its chief executive Mbuvi Ngunze told Reuters.

“We are talking to about three or four parties,” he said.

Kenya Airways seeks for a strategic partner to raise cash to overcome $253 million deficit it recorded in the last fiscal year. The move is part of its restructuring plan, “Operation Pride”, under which 600 jobs are to be cut and its fleet also from 52 to 36 planes.

Ngunze did not disclose the amount the company aims to mobilize however, it said earlier that it needs $692 million (Sh70 billion). Nevertheless, the CEO said the airlines was also talking with its creditors, including banks, to change the terms of its debt and get enough funds for operation in the short term.

Shareholders of Kenya Airways are Air France KLM (26.7%) and the government of Kenya (29.8%).

It should be recalled that on June 17^th, 2016, Kenya’s minister of transports, James Macharia, revealed that five (5) international airlines expressed their interest in buying a majority stake in Kenya Airways.

Alain Okpeitcha