This archive report was first published on 30 June 2021.
Kenya Airways' plan to pay pilots per flight has sparked a pay dispute between the national carrier and its pilots. The airline's chief executive officer, Allan Kilavuka, has stated that the airline would pursue talks with the pilots over the radical pay plan.
According to a report published on June 30, 2021, in a local daily, Kilavuka said, "We are looking at an arrangement where we pay pilots as they fly. Where do we get cash to pay pilots if planes are grounded?"
The airline aims to cut costs by reducing the number of pilots and adopting a productivity-based pay system. It plans to lay off an unspecified number of workers, get rid of some assets, and review aircraft leasing terms.
The airline expects to save nearly Sh. 3.24 billion if it meets the desired target of having between 207 and 248 pilots on its books. Pilots account for 10 percent of the airline's total workforce but take home the equivalent of 45 percent of the overall payout to employees, or Sh. 6.48 billion based on the carrier's wage bill for the year to December.
On average, a KQ pilot costs the company Sh. 1.3 million, a payout that matches the salaries and allowances of top chief executives of State-owned firms such as KenGen, Kenya-Re, and Kenya Power.
