Come to rescue of Kenya Airways

 

The urgency needed to pull back Kenya Airways (KQ) from the brink cannot be overemphasised. The national carrier has made losses consecutively for several years without signs of recovery. 

While bad investment policies (in the purchase and lease of aircraft) and ticket pricing have been blame d for the woes facing KQ, past management decisions cannot be overlooked.

According to a Senate report released in December last year, KQ incurred a loss of Sh27.5 billion in the financial year ending March 2015. In 2014, Kenya Airways made losses amounting to Sh3.3 billion. From a profit of Sh4.5 billion in 2008, the airline’s fortunes dipped in 2009 with a loss of Sh4billion. Since then, it has been on a downward spiral.

While previous and the current management of KQ have attempted to blame the huge losses on fierce competition, terrorism, travel advisories and unstable fuel prices, these reasons no longer hold water. KQ pilots have threatened to stage a strike unless KQ chairman Dennis Awori and CEO Mbuvi Ngunze resign within seven days starting last Monday.

This has resulted in ticket cancellations, worsening the situation. This is no time to standby and expect things to blow over. The Government must step in urgently, remedy and stabilise KQ to make it competitive again.