This archive report was first published on 24 August 2020.
Published on August 24, 2020, Kenya Airways is set to embark on a massive cost-cutting exercise that will see the airline sack at least 207 of its 414 pilots in the next three years.
The move is aimed at trimming costs, with the pilots' salaries accounting for 45 percent of the airline's payroll costs despite making up only 10 percent of the employees.
According to the airline's CEO, Allan Kilavuka, the reduction in pilots will enable the airline to efficiently support the reduced operations, with the airline expecting to save Ksh3.24 billion annually.
Kenya Airways has already laid off 650 employees, mostly trainee pilots, and plans to boot 590 more employees as part of its efforts to reduce its overall total fixed costs by about 50 percent.
The airline's senior management, however, account for 22 percent of the workforce and take home 22 percent of the payroll costs.
Kenya Airways posted a Ksh12.9 billion loss in the full year ended December 2019, with the government mulling over plans to nationalize the perennial loss-maker.
