Kenya Airways will reduce its fleet costs by Ksh700 million ($7 million) per month with the sale of its aircraft as the airline continues implementing its turnaround strategy.
The airline will also send home close to 600 workers to ease pressure on its wage bill.
The airline is expected to begin talks with workers’ unions on how jobs cut will be done.
“A series of meetings are lined up and each group will present its case. For Kenya Aviation Workers Union, one thing that could see us in court is an attempt to lay off our members at the expense of outsourced staff,” said Moses Ndiema, the union’s secretary general.
The realisation comes a month after KQ board appointed PJT Partners to restructure the airline’s balance sheet and raise long-term capital. The turnaround strategy is focusing on closing of profitability gaps, reaffirming a competitive edge and finding a sustainable financial structure for the business. Read more