Skip to main content

Kenya Airways is going through turbulence, but stays focused

Kenya Airways has released a statement admitting that the airline is going through business challenges at the moment but it stays focused in delivering the best services possible and measures are instituted to put the business on a recovery path and ultimately on a sound footing.

The following is the full statement as quoted from KQ.

Kenya Airways GMD & CEO - Mbuvi Ngunze.

Kenya Airways is only going through normal turbulence


All businesses have challenges, more so in our aviation industry, which is cyclical in nature and fraught with many risks.These include fuel price volatility, intense competition and more recently the threat of terrorism and epidemics that have adversely impacted global travel. There is also political instability, natural disasters and an increasingly tight regulatory environment and KQ is not isolated from any of these.

KQ has expanded its global footprint across multiple jurisdictions flying to 52 destinations. As a global airline, we are governed by stringent international aviation rules that we must adhere to.

Strong consumer activism in some markets like the European Union (EU) has imposed high costs of operations in cases of schedule interruptions.

But it has not always been doom and gloom. Over the last decade, Kenya Airways worked hard to successfully shed the image of an ailing airline dependent on government lifeline.

Since it was privatised in the late 1990s, the airline grew rapidly, lifted by strong fundamentals and embracing a culture of competitiveness and innovation. Before the current spate of challenges, KQ was one of the most profitable airlines even earning the ‘Most Respected Company in East Africa’ accolade.

Are we in debt? Yes we are. Is this normal for airlines? Most certainly. The question is one of balance for both long term and short term debt. Long term debt is the norm for financing asset acquisition together with equity. In the short term, we are experiencing a tight liquidity position driven by our business environment.

Were we too ambitious in our plans? Only time will tell. KQ from 2002 to 2011 grew from a turnover of Sh25 billion to over Sh100 billion, in the same period. It only made a loss in 2009. Against this backdrop, the Board embarked on a second phase of growth and renewal with mixed results thus far.

Operationally, we have seen significant improvements over the last two years both in on time performance and service. In the last month though, we have had significant disruptions to our schedule integrity which has regrettably impacted our loyal customers for two reasons.

Firstly, the change of schedule due to the runway closure and attendant internal adjustments we have had to make.

Secondly, we have had labour relations issues with some of our pilot community which in some instances has led to last minute flight cancellations or delays.

So, whereas KQ may today be grappling with challenges, what is important is that we stay focused in delivering on the wider promise. What matters most is the measures instituted to put the business on a recovery path and ultimately on a sound footing.

End.


Comments

Most Viewed Posts

Job Opportunities at Air Tanzania (ATCL)

VACANCIES ANNOUNCEMENT Air Tanzania Company Limited (ATCL) is in the process of revamping its operations and has introduced new equipment to its fleet. The Company is therefore inviting applications from qualified personnel to fill various positions.
1.      POSITIONS: 
1.1. Dash 8 – Q400 Mechanical and Avionics Certifying Engineers (6 POSTS) 
   a)    Qualifications·         ·Must possess a valid Aircraft Maintenance Engineers License (ICAO TYPE II).  ·        ·Must possess a valid Dash 8 – Q400 Approval/License.·Must have successfully completed Dash 8 – Q400 type course from an Approved Training Organisation.       ·Must have Aircraft Maintenance working experience, as a certifying engineer, of not less than 5 years; 2 of which being on Dash 8 – Q400. Experience must include release to service certification after “A” Check and above.       ·Computer literacy·        ·Fluency in English·        ·Possession of Dash 8-Q300 Approval/License will be an added advantage.

   b)    Duties and res…

Job Opportunities at Air Tanzania: Pilots-in-Command, Co-Pilots,Aircraft Maintenance Engineers and Cabin Crews.

Air Tanzania Company Limited (ATCL) is in the process of revamping its operations and has introduced new equipment to its fleet. The Company is therefore inviting application from qualified personnel to fill various positions.
1. POSITIONS: 1.1 Pilot-in-Command – Dash 8 (11 Posts) a) Qualifications: Must possess Airline Transport Pilot License (ATPL) and with performance “A”.Must additionally achieve the following:- ·Minimum of 4000 hours flying experience of which 2000 hours must be command on multi-engine aircraft; Above 17 ton. ·Group 1 endorsement on DASH 8 or Equivalent with a minimum of 500 hours command on type; ·Pass an oral interview and flying acceptance check conducted by the Company; ·Must pass a Base and Route check with an Instrument Rating within 10 and 70 hours respectively; ·Track record of good performance as a Commander and no accident record.
b) Duties and responsibilities: ·To command the aircraft with due regard for safety and comfort of passengers at all times. ·To maintain…

Job Vacancy At Precision Air - Cabin Crews (10-Posts)

JOB VACANCY Precision Air Services Plc is a fast growing private Tanzanian airline which operates in Partnership with Kenya Airways, with its strategies to expand wings beyond East Africa and Africa.
In order to keep our services at a higher level and meet our customers’ maximum satisfaction We wish to invite applications from suitably qualified candidates to fill in this challenging position.
POSITION:          CABIN CREWS(10-POSTS) REPORTS TO:     CHIEF CABIN CREW DUTY STATION: DAR ES SALAAM ROLE PURPOSE OF THE STATEMENT
You will be reporting to Chief Cabin Crew/Assistants Chief Cabin Crew - P