This archive report was first published on 7 July 2020.
Kenya Airways has embarked on a massive layoff exercise, sending home 182 pilots and over 400 cabin crew members. The airline's shares are currently suspended from trading at the Nairobi Securities Exchange (NSE).
The affected employees have been given a one-month notice, effective from June 24, 2020. They will receive their salary and applicable allowances up to June 24, 2020, a one-month salary in lieu of notice, and accrued leave days as at June 24, 2020.
According to The Star, the airline will spend an average of KSh30 million to send one senior captain home on full benefits, with an estimated KSh5.4 billion required for the overall downsizing.
Group CEO Allan Kilavuka has also asked some workers to go on unpaid leave, effective from July 6, 2020. This move is part of the airline's efforts to reduce expenditure on salaries and remain afloat during the coronavirus pandemic.
Kenya Airways has already sent part of its workforce of about 4,000 employees on unpaid leave in March, with those remaining taking pay-cuts of between 35% and 75%.
The layoffs come as the Government plans to establish the Kenya Aviation Corporation, an entity that will take over operations of Kenya Airways upon its nationalization and delisting from the NSE.
With the restrictions on intercounty movements lifted, local air travel is set to resume on July 15, 2020, with strict adherence to all applicable guidelines and protocols from both the Ministry of Health and civil aviation authorities. International flights are expected to resume on August 1, 2020.
