How KQ is secretly transforming into “Shame of Africa”

Kenya Airways Plane
Kenya Airways planes are seen parked at the Jomo Kenyatta International airport near Kenya’s capital Nairobi, April 28, 2016 [Photo, Reuters]
Since 2014, Kenya Airways has accumulated losses totalling to Sh89.3 billion and the figure is expected to rise following Tuesday’s announcement that its first-half loss doubled to Sh8.56 billion.

In a statement yesterday, the airline said it made Sh8.56 billion loss from January to June this year from Sh3.39 billion last year during the same period.

Kenya Airways attributed the loss to increased operating costs brought by its expansion into new routes.

Kenya Airways Group CEO Sebastian Mikosz said the carrier had a challenge recruiting pilots due to a “restrictive CBA”.

He said pilots were to blame for the increase in flight disruptions which has seen almost 40 per cent of its departures delayed, sometimes by more than an hour.

In May, Mikosz, had announced he would terminate his three years contract five months earlier due to “personal reasons”.

The national carrier also faces major competition from other airlines in Ethiopia, Rwanda, Tanzania and Uganda.

The recently relaunched Uganda Airlines is expected to increase competition in the East African aviation business which is currently dominated by the Ethiopian Airlines.

In March, the national carrier trended on social media with Kenyans criticizing its management for employing many expatriates and placing them on “high unreasonable salaries”.

However, Mikoz, as reported by the Star, rubbished the claims saying out of the 3000 employees at KQ, only 18 were expatriates and consultants.

“Of the 18 employees, 5 are KLM managers seconded to KQ. Two of them are occupying senior positions: The Chief Operating Officer and the Head of Global Sales,” adding that “although they work for KQ, they remain KLM employees”.

The national government plans to rationalise the airline, which was privatized in 1996, in attempts to bring it back to profitability following five straight years of losses.

Here are some of Kenyans reactions following Kenya Airways reported loss:

 

 


 

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