By Getrude Matayo
Kenya Airways is seeking to lay off half of its pilots as it slashes costs of weather the cashflow crisis deepening by the coronavirus crisis.
The coronavirus crisis has hit the global aviation industry hard, the African carrier alone expected to lose more than 6 billion shillings this year in revenue.
Kenya Airways had been in plans to reduce its size after Covid-19 broke and grounded all its operations. It noted that even the resumption of flights, it will still need another two to three years before the industry can normalize.
The National carrier intends to cut up to 207 of its 414 pilot jobs which account for nearly half of its payroll costs, over the next three years.
It expects to save nearly 3.24 billion shillings if it meets the desired target of having between 207 and 248 on its books.
Earlier, Kenya Airways plans to lay off 40 percent of its employees in the restructuring. The carries had a headcount of 3, 734 employees, as of December last year which would mean sending home about 1,500 employees.
The airline has so far laid off some 650 employees, mostly trainee pilots, trainee cabin crew, technician trainee, and newly hired staff on probation and plans to shed 590 more jobs.
According to Kenya Airways, the pilots account for 10 percent of the airline’s total workforce but take home the equivalent of 45 percent of the overall payout to employees or 6.48 billion bases on the carrier’s wage bill for the year December.
This means that on average, a KQ pilot costs the company 1.3 million shillings, a payout that matches the salaries and allowances of top chief executives of State-owned firms.
“Based on our three-year projection, we will require 50 percent to 60 percent of pilots to efficiently support reduced operation,” Said Mr. Kilavuka
He added that their target is to reduce that company’s overall total fixed costs, not just staff costs by 50 percent in response to their revenue projections
KQ is seeking cost saving of up to 63 billion based on its expenses of 127 billion shillings for the year to December