By Nsunjo Erica
Speaking during an interview, Kenya Airways Plc’s Chief Executive Officer Allan Kilavuka said that the Airline needs at least 50 billion shillings to survive through the COVID-19 situation after first-half revenue plunged almost 50 percent.
“If we don’t restructure the airline, and take the airline as it is into this organization, then we are doing a disservice to the taxpayer,” Kilavuka said. “Right now it is under-capitalized, given the effects of Covid-19.”
The Airline’s CEO said recapitalization would pare debt after the company’s liabilities increased to 218.9 billion shillings at the end of June while providing capital for growth once markets begin to rebound.
Kilavuka added that the company has and is focused on cutting labor and plane-lease costs, which are its biggest fixed expenses, by $66 million through the end of 2021.
The Airline has laid off about three-quarters of its staff including pilots in the last few months immediately the president opened the economy giving a go-ahead to the resumption of flights.
He added that the company’s other proposals include converting unneeded airliners for short-term cargo use. This move is focused on eliminating costs without resorting to the 1,400 job cuts which according to KQ may be inevitable.
Projections indicate that Kenya Airways will need only 24 aircraft over the next two or three years, out of a current fleet of 34 passenger planes and two freighters, Kilavuka said.
“We want Kenya to be the preferred hub for the region,” he said. “For that to happen the airport needs to grow and modernize and the airline needs to be efficient and responsive to the needs of the market.”
Current COVID-19 Situation In Kenya
According to current stats, Kenya recorded 152 new Covid-19 cases on Sunday 20th September 2020, bringing the total number of cases in the country to 36,981.
The country also recorded 110 recoveries from the COVID-19 virus, with 39 from the Home-Based Care Program and 71 have been discharged from various hospitals. Total recoveries now stand at 23,887.
As of Sunday 20th September 2020, two patients succumbed to the COVID-19 virus bringing the total fatalities to 648.
READ: More Job Losses Ahead As Kenya Airways Set To Fire Half Of Its Pilots