[fm]: Kenya Airways to cut jobs as part of turnaround strategy

Kenya Airways Ltd., which last year reported the biggest corporate loss in Kenyan history, is in the early stages of implementing a turnaround strategy that will involve cutting jobs and selling some aircraft, Chief Executive Office Mbuvi Ngunze said.

The plan, developed by McKinsey & Co., will be implemented over the next 18 months, Ngunze said in an e-mailed response to questions in the capital, Nairobi, on Tuesday.

 

“It’s a comprehensive plan looking at all things,” Ngunze said. “It will see us turn around through various measures including cost management, refinancing business, commercial and sales efficiency and asset sales.”

Kenya Airways plans to sell five more Boeing 777s, Ngunze said. The company said last week it had signed a sale agreement for two Boeing 777-200 ER craft with U.S.-based Omni Air International.

The company retired eight pilots last year and more employees would “be affected by the sale of the planes,” Ngunze said.

Its shares sold for 4.70 shillings at 12:35 p.m. in Nairobi, giving up the 1 percent gain they had made earlier in the session.

By: Felix Njini. 

Review: Emerging Market Formulations & Research Unit, Flagship Records. 

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