Encomm Aviation (
Nairobi Jomo Kenyatta) has warned it may be unable to repay a USD16 million loan underwritten by Sweden’s Exportkreditnämnden (EKN) following
BAe Systems' withdrawal of product support for the
BAe ATP, effectively shutting down the Kenyan carrier’s operations.
Encomm, the last global operator of the ATP since 2023, alleges it was assured by BAe Systems' leadership that support would continue for at least five years, or as long as one ATP remained in service. Just over a year later, the manufacturer terminated its support without consultation, the airline claims.
The carrier is now seeking GBP187 million pounds (USD250 million)
in losses and damages from BAE in the United Kingdom, claiming "negligent misrepresentation and misstatement by BAe Systems".
Encomm director Jackton Obuola claimed the support shutdown from the manufacturer came "overnight", placing both the airline’s financiers and East African aid deliveries at heightened risk, even as BAE reports record profits and secures major defence contracts in Europe.
From 2023, Encomm acquired 12 long-stored ATPs from West Atlantic Sweden - ten freighters and two passenger aircraft - and invested heavily in a long-term operational programme, including securing the world’s only operational full-motion ATP simulator. The carrier obtained its air operator's certificate (AOC) and approved maintenance organisation (AMO) certification from the Kenyan Civil Aviation Authority (KCAA) in August 2024 and had planned to launch passenger services in late 2025.
www.theguardian.com
