By Getrude Matayo
The Kenya Airways board has approved the downsizing of staff, networks, and assets citing the adverse effects of Covid-19 on its operations.
Through Chief Executive Officer Allan Kilavuka in a letter to Kenyan Pilots Association on Friday said the company has received the nod from its board to carry out layoffs after its operation in May.
According to Kilavuka, the decision has been greatly influenced by the coronavirus that pandemic that has affected the airline revenues despite the resumption of domestic and international flights.
The airline formally notified the pilots association of its intention to shed off a large number of its workforce on a Friday notice. The management says the fall in revenue has undermined the airline’s ability to continue optimal operations.
KQ intends to carry out an organization-wide restructuring, which it says would culminate in a reduction in its network, assets and staff.
The notification letter to the pilots comes after the pilots in late July asked President Uhuru Kenyatta to intervene in the redundancy plans that would affect at least 4000 families.
Acting CEO Allan Kilavuka told the Kenya Airline Pilots Association (Kalpa) the redundancy process will commence immediately.
He assured the association the company shall adhere to the provisions of the labor laws, the comprehensive bargaining agreement (CBA), and any related court orders.
The loss-making airline had planned to cut its operations in the coronavirus pandemic that saw it ground all its operations, we’re projecting another two to three years before the industry can normalize.
The KQ boss said an internal review of operations conducted in May revealed the operations would not be sustainable with the status quo.
Kilavuka held that KQ, as is the case with other airlines globally, has been severely hurt by the pandemic, with the limited flying schedule not promising sufficient revenues.
The Airline plans to lay off 40 percent Of Its employee in the restructuring exercise.