Flights cancellations flying Kenya Airways to losses Senate

The Senate has attributed the huge losses incurred by the national career Kenya Airways to poor management and relationship with customers.

The Senate Select committee investigating the cause of huge losses registered by KQ said frequent cancellation of flights causing inconvenience and poor relationship with passengers, who consequently abandon using the airline is one of the largest contributors to the financial crisis facing the airline.

The committee – under the chairman ship of Kisumu Senator Anyang’ Nyong’o, 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.

Further, Senators said expensive ticketing, which are 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 causes long drawn industrial unrest detrimental to establishing a healthy business environment in the company.

It also blamed the losses on poor investments decisions by management of buying and leasing aircrafts, and fuel hedging, under arrangements which are not profitable to the company, thereby leading to sky rocketing indebtedness.

The report was released less than a week after the national carrier announced a Ksh 25.7 billion after tax loss, the largest loss ever by a listed company.