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Kenya Airways to Lay Off Employees

Published

5 years ago

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Struggling national carrier Kenya Airways (KQ) plans to lay off a significant number of employees in yet another attempt to remain afloat.

Battered by the impacts of the Covid-19 pandemic that has hurt the aviation industry and awaiting an uncertain nationalisation process, the airline said it is unable to fulfil its obligations and maintain operations in the current environment.

Effectively, the airline’s only hope for survival in the short and medium-term is inevitably pegged on reduction of operations before beginning to scale up again.

“A decision has been reached to carry out an organisation-wide rightsizing exercise which will result in a reduction of our network, our assets and our staff. Effectively, we have commenced a phased staff rationalisation process, which we expect to conclude by September 30 2020,” said KQ chief executive Allan Kilavuka in a memo to staff.

He added that with the suppressed demand for air transport occasioned by the pandemic, a large part of the airline’s fleet will remain grounded even after it resumes gradual flights intended to commence in August.

“We will also operate a reduced network when we resume our services as we anticipate that it will take some time before the industry starts to rebound,” added Mr Kilavuka.

Prior to the pandemic, the struggling airline had a workforce estimated at 4,000 and operated a fleet of 36 to 54 global destinations.

KQ’s stock has been suspended from trading on the Nairobi Securities Exchange for three months effective July 3 to pave way for the planned takeover by the government following the publication of the National Management Aviation Bill 2020 on June 18, 2020.