This archive report was first published on 5 July 2020.
Kenya Airways (KQ) is facing significant challenges due to the COVID-19 pandemic, which has led to a decline in air travel demand.
As a result, the airline has announced plans to undertake a 'rightsizing exercise' to reduce its operations and workforce.
Chief Executive Officer Allan Kilavuka informed employees that the airline will retain workers who will continue operating cargo flights as well as domestic flights, which it expects to restart operating soon.
However, some employees will be required to proceed on unpaid leave beginning tomorrow.
Mr Kilavuka stated that the airline's short and medium-term projections indicate that it must inevitably reduce its operations before it can scale up again.
He added that a large part of the airline's fleet will remain grounded, and the network will be reduced when services resume.
Kenya Airways has been struggling for a number of years, with the coronavirus adding to its challenges.
The airline reported a net loss of Sh12.9 billion for the year to December 2019, compared to a loss of Sh7.5 billion in 2018.
Central Organisation of Trade Unions (Cotu) Secretary General Francis Atwoli has expressed concern over the plan to send home KQ employees, stating that the carrier's leadership, especially at the board level, is at the centre of the challenges it is facing.
Mr Atwoli singled out board chairman Michael Joseph, whom he said adds no value to KQ and should be replaced.
The latest development comes even as the government embarks on the process of nationalising the airline.
On Friday, its shares were suspended from trading at the Nairobi Securities Exchange (NSE) for three months.
