This archive report was first published on 12 September 2019.
Kenya Airways, the country's flag carrier, is facing significant financial challenges due to frequent flight delays and cancellations. According to a leaked memo, the airline is at risk of losing thousands of customers to rivals due to the disruptions.
The airline has reportedly been losing about KSh 5 billion annually due to flight delays and cancellations. In an effort to address this issue, Kenya Airways plans to hire 20 new pilots on a contract basis.
Outgoing CEO Sebastian Mikosz had previously indicated that KQ pilots were overpaid and underutilized, which contributed to the airline's underperformance. The decision to hire new pilots on a contract basis is seen as a move to reduce costs and improve efficiency.
Kenya Airways has been facing a backlash over frequent flight delays and cancellations, which have not only inconvenienced customers but also cost the taxpayers money. The airline has cancelled over 50 flights in August 2019 alone and delayed 40% of the flights this year.
According to a confidential document, accommodation costs hit KSh 118 million in the first seven months of 2019 as a result of flight cancellations. The airline recorded a KSh 7.55 billion net loss in the year ending December 2018, with frequent flight cancellations, delays, and shortage of staff cited as the main contributing factors.
Kenya Airways has announced plans to reduce its network to avoid further erosion of the brand due to the disruptions. The airline's boss, Sebastian Mikosz, indicated that the details of the affected routes will be communicated later.
