Gov’t in discussion to save KQ

Acting Cabinet Secretary for Transport James Macharia has said that the Ministry is in discussions with the Kenya Airways (KQ) board to come up with ways to ensure the KLM/KQ partnership benefits KQ, especially in Africa.

Speaking when appearing before the Transport Committee of the National Assembly chaired by Maina Kamanda, Macharia said that Kenya Airways should be given first choice on African routes instead of KLM as the later is a competitor when it comes to flying in Africa.

Macharia noted that KQ needs to be seen as an International Airline, adding that he together with Treasury CS Henry Rotich have had several meetings with the airline’s board over alleged mismanagement of the national carrier.

Macharia is set to appear before the Senate Select Committee on the Kenya Airways inquiry chaired by Senator Anyang’ Nyong’o.

The select committee will conduct its probe into challenges facing Kenya Airways in three-months and make recommendations to help salvage the firm from making further losses.

In early August, the Senate attributed the huge losses incurred by the national carrier to poor management and relationship with customers.

The committee further attributed the losses to poor routing arrangements and partnerships, which may account for massive losses of revenue, particularly due to lack of expansion of KQ flights in the African routes.

Senators further said that expensive ticketing, which makes the flights non-competitive in the market, have led to loss of passengers as well as revenue.

The committee also said Kenya Airways has a problematic human resources policy and practices that cause long drawn industrial unrest which are detrimental to establishing a healthy business environment in the company.

Kenya Airways announced a Sh25.7 billion after tax loss in July, the largest loss ever by a listed company.