Kenya Airways info
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Please someone tell me this is not happening especially for crews...
Turbulence at Kenya Airways
Published on February 1, 2008, 12:00 am
By James Anyanzwa
The Kenya Airways has announced plans to send home part of its workforce in the next two months.
The move is part of the national flag carrier’s strategy to stay afloat in the midst of misfortunes that has seen its passenger numbers in major routes plunge by over 15 per cent in the last four weeks.
Mr Titus Naikuni, the airline’s chief executive, blaming its dismal performance on post-poll violence also disclosed a decline in cargo business by four per cent.
"There are some employees who are not required," Naikuni told journalists at the company’s offices on Thursday.
Against a backdrop of waning customer loyalty and declining profits, Naikuni said the company had been forced to review its forecast for the current financial year.
He said the company will send some of its non-critical staff on paid leave and "also control its expenditure where it is absolutely not necessary in the short term".
He, however, declined to comment on the number of employees to be sent home and the cost implications to the company that has been serious weighed down by competition from both local and international airlines.
"Most of the routes, particularly in Europe, are not doing well," Naikuni said.
He pointed out that European routes to London, Amsterdam, Paris and a number of African destinations — such as Johannesburg — have been badly affected.
He also cited Mombasa, a major tourist and business destination that has been affected by post-election violence.
The effects of the political crisis adds to KQ’s growing pains set off by a diminishing market domination as a result of poor service delivery.
Erosion of earnings had previously been highlighted in a recovery plan crafted to salvage its battered public image. Naikuni said the airline had instituted short-term actions in attempt to mitigate the negative impact of post-election violence.
He said the airline is reviewing its capacity by reducing the number of flights in some destinations and in some cases cancelling them.
He said capacity has been reduced to London, Amsterdam, Paris, Johannesburg, Mombasa, Lagos, Khartoum, Cairo, Kisumu, Dubai, Kinshasa, Dzaoudzi (Mayotte) and Hahaya (Moroni).
The airline has seen its revenues tumble amid rising discotent over the quality of its service delivery.
The airline is under intense pressure to provide competitive quality service and reliability from its frequent travellers.
"Service quality, consistency of delivery, performance and reliability have become a key success factor," according a rescue plan seen by The Standard.
Official figures indicate that KQ’s revenues and passenger volumes along the European and American routes fell by 10.2 per cent over an eight-month period between April 2006 and January last year.
On the Asian and Oceanic routes, the revenues dropped 5.8 per cent, but registered a rise in traffic.
On African routes, the airline witnessed its earnings and passenger volumes fall 11.2 per cent and 9.4 per cent.
The share price is on a losing streak closing at Sh45.75 on Thursday.
Turbulence at Kenya Airways
Published on February 1, 2008, 12:00 am
By James Anyanzwa
The Kenya Airways has announced plans to send home part of its workforce in the next two months.
The move is part of the national flag carrier’s strategy to stay afloat in the midst of misfortunes that has seen its passenger numbers in major routes plunge by over 15 per cent in the last four weeks.
Mr Titus Naikuni, the airline’s chief executive, blaming its dismal performance on post-poll violence also disclosed a decline in cargo business by four per cent.
"There are some employees who are not required," Naikuni told journalists at the company’s offices on Thursday.
Against a backdrop of waning customer loyalty and declining profits, Naikuni said the company had been forced to review its forecast for the current financial year.
He said the company will send some of its non-critical staff on paid leave and "also control its expenditure where it is absolutely not necessary in the short term".
He, however, declined to comment on the number of employees to be sent home and the cost implications to the company that has been serious weighed down by competition from both local and international airlines.
"Most of the routes, particularly in Europe, are not doing well," Naikuni said.
He pointed out that European routes to London, Amsterdam, Paris and a number of African destinations — such as Johannesburg — have been badly affected.
He also cited Mombasa, a major tourist and business destination that has been affected by post-election violence.
The effects of the political crisis adds to KQ’s growing pains set off by a diminishing market domination as a result of poor service delivery.
Erosion of earnings had previously been highlighted in a recovery plan crafted to salvage its battered public image. Naikuni said the airline had instituted short-term actions in attempt to mitigate the negative impact of post-election violence.
He said the airline is reviewing its capacity by reducing the number of flights in some destinations and in some cases cancelling them.
He said capacity has been reduced to London, Amsterdam, Paris, Johannesburg, Mombasa, Lagos, Khartoum, Cairo, Kisumu, Dubai, Kinshasa, Dzaoudzi (Mayotte) and Hahaya (Moroni).
The airline has seen its revenues tumble amid rising discotent over the quality of its service delivery.
The airline is under intense pressure to provide competitive quality service and reliability from its frequent travellers.
"Service quality, consistency of delivery, performance and reliability have become a key success factor," according a rescue plan seen by The Standard.
Official figures indicate that KQ’s revenues and passenger volumes along the European and American routes fell by 10.2 per cent over an eight-month period between April 2006 and January last year.
On the Asian and Oceanic routes, the revenues dropped 5.8 per cent, but registered a rise in traffic.
On African routes, the airline witnessed its earnings and passenger volumes fall 11.2 per cent and 9.4 per cent.
The share price is on a losing streak closing at Sh45.75 on Thursday.
