Former Safaricom chief Michael Joseph re-elected KQ board chair to continue turnaround drive ▷ Kenya News

- Joseph, the founding CEO of Safaricom, has been Kenya Airways (KQ) board chairman since October 2016

- In his first term, he oversaw reduction of KQ’s loss from KShs 25 billion in 2015 to KSh 7.5 billion loss in 2018

- He said KQ had developed a five-year plan built on realistic assumptions towards revenue increase and costs reduction

Kenya Airways (KQ) shareholders have re-elected Michael Joseph board chair for a second term with a mandate to continue steering airline’s turnaround strategy and fly it out of loss-making.

Joseph who has been holding the same position since October 2016 was re-elected during the carrier's 43rd annual general meeting (AGM) held at Pride Centre in Nairobi where a number of other board members were picked.

READ ALSO: Cash-strapped Kenya Airways increases flights across Africa as it struggles to restore profitability

Kenya Airways board chairman Michael Joseph addressing stakeholders during the airlines annual general meeting held on June 10, 2019, in Nairobi. Photo: KQ.
Source: UGC

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During his first term as board chairman, the former Safaricom CEO oversaw reduction of the KQ’s loss from KSh 25 billion reported in 2015 to an improved position of KSh 7.5 billion loss reported in 2018 according to the airline.

“On a year on year comparison of 12 months, we managed to reduce our operational loss by kshs 2.263 billion between 2017 and 2018. This, however, does not immediately jump out of our audited results since we changed the reporting periods, thereby making a comparison of nine month in 2017 to 12 months in 2018.

We expect this to even out in our next reporting cycle but more importantly, we are all committed towards delivering continued stronger results in 2019,” Joseph told shareholders during the AGM on Monday, June 10.

READ ALSO: KQ announces KSh 7.59 billion loss, blames it on high cost of fuel

The chairman, the founding CEO of telecom giant Safaricom, disclosed the airline had developed a five-year plan built on realistic assumptions towards revenue increase and costs reduction.

“We are working towards efficient network planning including closure of unprofitable routes, launch of new prospective connections as well as upgrade or downgrade of equipment used to operate flights.

As a result of these actions, we hope to significantly increase KQ’s passenger numbers and consequently revenue levels,“ he said.

The flag carrier stated it had undertaken various measures to ensure financial and operating efficiency to enhance business sustainability despite unfavorable market conditions.

Network expansion is among the airline’s initiatives to turn around its fortunes and grow its market share in Africa.

As of June 2019, KQ was flying to 53 destinations worldwide with plan to add two more routes in Europe underway.

“One of our biggest wins in 2018 was the growth in our revenue to reach Kshs 114.45 billion from Kshs 106 billion in 2017. Passenger revenue, which accounts for the lion’s share of KQ’s revenues, rose to Kshs 88.7 billion in the year ended December 31, 2018,” Joseph said.

READ ALSO: Kenya Airways suffers KSh 4 billion loss in 2018 half year results

He added the airline’s fleet ownership costs and overheads was KSh 114.868 billion against total revenue of KShs 114.185 billion, bringing total operating loss to Ksh 683 million.

This, the chairman said, was a strong indication the airline could in the near future (once again) be able to sustain its operations from its own internally generated revenues.

The flag carrier was recently voted as Africa’s leading Airline, business class for the sixth time in a row and Africa’s leading airline, economy class for the second time in a row according the World Travel Awards 2019 report.

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