Fears of job losses rife over KQ, KAA merger


Fears of job losses rife over KQ, KAA merger
A South African Airways aircraft (bottom) arrives as a Kenya Airways aircraft prepares to take off at the OR Tambo International Airport in Johannesburg, South Africa, March 8, 2017. REUTERS/Siphiwe Sibeko

In Summary

  • The SPV would then have an option of recruiting the former KAA employees under fresh contracts of employment with the SPV.
  • KAA in the document also stated all the options will be put up for public participation which is set to start in Kisumu on the 30th of January.
  • Kenyans on social media have however raised questions regarding the capability of KQ running the biggest airport in the country given the fact that it has been reporting losses for the last 3 years.

The Kenya Airports Authority (KAA) is set to kick off talks on Kenya Airways’ plan to manage operations at the Jomo Kenyatta International Airport (JKIA).

Documents detailing the proposal exclusively obtained by Citizen Digital however reveal that KAA plans to make all JKIA employees redundant at the onset before giving the employees fresh contracts of employment.

In the proposal, Kenya Airways has issued KAA with three options in regards to how they would treat JKIA staff.

The first option states that second all the current JKIA staff to the Special Purpose Vehicle (SPV) on the same terms for a period of 12 months.

After the secondment period, KQ will transfer employees to the SPV with the right to choose employees who receive the transfer proposal.

The second option states that those it wishes to retain after the secondment period, would have to be transferred to the SPV by way of an agreement between the SPV, KAA and their staff.

The transfer process would require willing employees to confirm possible reduction in benefits that they enjoy as civil servants in particular pension benefits.

The final option states that KAA would make all JKIA employees redundant at the onset.

The SPV would then have an option of recruiting the former KAA employees under fresh contracts of employment with the SPV.

KAA in the document also stated all the options will be put up for public participation which is set to start in Kisumu on the 30th of January.

Kenyans on social media have however raised questions regarding the capability of KQ running the biggest airport in the country given the fact that it has been reporting losses for the last 3 years.

“The authority will provide a blueprint based on the carrier’s proposal to manage the country’s main airport,” said Jonny Andersen, MD KAA.

This restructuring is part of efforts to help the airline’s recovery and boost its dwindling revenues.

The airline seeks to borrow a leaf from Ethiopian Airlines that operates Bole International Airport with approval from the government.

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Story By Faizal Ahmed
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