This archive report was first published on 6 July 2020.
Published on July 6, 2020, Kenya Airways is set to resume domestic operations in the coming weeks, but the airline's Chief Executive Officer Allan Kilavuka has announced plans to send home some of its workers.
The airline's restructuring is a result of the suppressed demand for air transport, which has led to a significant reduction in operations. In a memo to staff, Kilavuka stated that the airline will be undergoing an organization-wide right-sizing exercise, which will see a reduction in its network, assets, and staff.
"With the suppressed demand for air transport, a large part of our fleet will remain grounded, therefore a decision has been reached to carry out an organization-wide right-sizing exercise which will see a reduction of our network, assets and our staff," Kilavuka said.
As part of the restructuring, some employees will be forced to proceed on unpaid leave effective Monday, as their services will not be needed under the new company strategy. Kilavuka pledged to ensure that the actions taken by the company will be conducted in a fair, respectful, and transparent manner.
Kenya Airways has been severely affected by the coronavirus pandemic, with the airline losing in excess of Sh10 billion in revenue since January. The airline's CEO estimated that the company will lose up to Sh50 billion by December.
"Our estimates is that since January to date, we have probably lost around USD 100 million (Sh10 billion), when we estimate to the end of the year we will lose USD 400 million to 500 million (Sh40-50 billion)," Kilavuka told journalists after the Annual General Meeting held last week.
Kenya Airways posted a net loss of Sh12.98 billion for the year that ended December 2019, compared to the Sh7.558 billion loss posted a year earlier. The airline's shares were suspended from trading on the Nairobi Securities Exchange for three months, as the government moves to fast-track the re-nationalization of the carrier.
