This archive report was first published on 25 August 2020.
Kenya Airways, the country's national airline, is facing a cash flow crisis following the Covid-19 pandemic. To mitigate this, the airline plans to lay off up to 207 of its 414 pilots over the next three years.
This move aims to save nearly Sh3.24 billion, which is approximately 50% of the airline's desired target of having between 207 and 248 pilots on its books.
According to Kenya Airways' chief executive, Allan Kilavuka, the airline will require 50-60% of its pilots to support reduced operations. The goal is to reduce the company's overall total fixed costs by 50% in response to revenue projections.
So far, the airline has laid off around 650 employees, mostly trainee pilots, cabin crew, and newly hired staff. An additional 590 jobs are set to be shed.
While pilots account for only 10% of the airline's workforce, their pay constitutes 45% of the overall payout to employees, amounting to Sh6.48 billion based on the carrier's wage bill for the year to December.
On average, a Kenya Airways pilot costs the company Sh1.3 million, a sum comparable to the salaries and allowances of top chief executives of State-owned firms such as KenGen, Kenya-Re, and Kenya Power.
Experts warn that this move may lead to a brain drain, as pilots in Kenya may be poached by wealthy Middle East carriers offering higher wages.
