5 problems facing Kenya Airways: Nyong'o
03 August 2015, 14:03
Nairobi - What ails Kenya Airways? Kisumu Senator Prof. Anyang Nyong'o has a say on what he believes is the real issue.
The struggling national carrier announced losses of as much as KES 25.6 billion for the year 2014, an issue that has sparked debate on the management of the airline.
Several persons have had their say on the matter, with the opposition stating its disbelief and MPs calling for a serious look into the airline and its running.
According to Nyong'o, the Senate had already set up a committee to look into the airline and will soon come up with a progress report.
" Kenyans are aware that the Senate established a Select Committee to
look into the crisis facing Kenya Airways, the national flag career,
after I moved a motion to that effect over 2 months ago. The Committee
has held several meetings, including 2 public hearings, but the work is
not yet completed.
" Evidence so far gathered shows
that the airline faces major problems which the committee is looking
deeply into with management as well as other stakeholders. These can be
summarized as follows:
(1) Poor investments decisions by
management of buying and leasing aircrafts, and fuel hedging, under
arrangements which are not profitable to the company, thereby leading to
sky rocketing indebtedness;
(2) Expensive ticketing which are non competitive in the market leading to loss of passengers as well as revenue;
(3) Routing arrangements and partnerships which may account for massive
losses of revenue, particularly due to lack of expansion of KQ flights
in the African routes;
(4) Problematic human resources policy and
practices causing long drawn industrial unrest detrimental to
establishing a healthy business environment in the company.
Frequent cancellation of flights causing inconvenience and poor
relationship with passengers, who consequently abandon using the
The government has yet to comment directly on the Kenya Airways issue, something that has irked the opposition.
" The silence from the government on this matter is deafening and explains why the airline is in so much trouble," ODM chairman John Mbadi complained.
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