The board of Kenya Airways (KQ, Nairobi Jomo Kenyatta) has approved an imminent downsizing of assets, network, and staff, blaming the impact of Covid-19 on its operations. Around 1,500 of the company's 3,734 employees, 40% of the workforce, are likely to lose their jobs, The Star reported.
CEO Allan Kilavuka confirmed in a letter to the Kenyan Airline Pilots Association on August 7 that the board had given the carrier the nod to implement the layoffs after it had reviewed operations in May.
Flight crews represent 33% of the job losses, ground operations 24.9%, maintenance 13.8%, commercial 12.5%, cargo 4.3%, other areas 11.3%. Salaries currently account for about 20% of the company's costs.
“We write to you to inform you that following a thorough review the Kenya Airways Board has approved the decision to carry out redundancy actions across the company network. This, therefore, is formal notification that we will be commencing a redundancy process across the business,” he said, adding that the process would commence immediately.
“The scale of this challenge requires substantial change, so that we are in a competitive and resilient position to address the impact of Covid-19 and withstand any long-term reductions in customer demand and any other economic shocks,” Kilavuka explained.
The company will adhere to the provisions of the country's labour laws, collective bargaining agreements, and other related court orders, he assured. “The employees affected by this move will be accorded the respect and dignity that is required,” the letter said.
Suppressed demand for air transport will continue for the foreseeable future and a large part of the fleet will remain grounded, meaning that “we will keep operating a reduced network.”
Also on August 7, Kenya Airways announced the continued suspension of flights to eight destinations in Africa, citing a drastic decline in revenues. These are to Bamako, Blantyre, Brazzaville, Djibouti, Luanda 4 De Fevereiro, Khartoum, Maputo, and Mogadishu.
Kenya Airways operates a fleet of 38 aircraft, according to the ch-aviation fleets module, including nine B787-8s (four inactive), eight B737-800s (six inactive), two B737-700s (both inactive), two B737-300(F)s, and seventeen ERJ 190-100ARs (twelve inactive). The carrier currently operates 200 weekly frequencies on 20 routes, the ch-aviation capacities module shows.
