Kenya Airways is seeking government protection to ward off
competition from African and Middle East air carriers flying into
Nairobi.
competition from African and Middle East air carriers flying into
Nairobi.
In a press conference on Thursday, Kenya
Airways chief executive Sebastian Mikosz said the state subsidies
extended to carriers such as Ethiopian, RwandAir, and Gulf airlines like
Etihad meant that they were not competing on an even field.
Airways chief executive Sebastian Mikosz said the state subsidies
extended to carriers such as Ethiopian, RwandAir, and Gulf airlines like
Etihad meant that they were not competing on an even field.
“Everybody wants an airline, the question is; are we all playing the same rules?” asked Mr Mikosz.
Kenya
Airways chairman Michael Joseph said they had been in discussions with
the government and the Kenya Airports Authority (KAA) on the matter
prior to the elections and that the negotiations were expected to
continue after this political season.
Airways chairman Michael Joseph said they had been in discussions with
the government and the Kenya Airports Authority (KAA) on the matter
prior to the elections and that the negotiations were expected to
continue after this political season.
“We need to have
a bit more aggressive strategies from the government in protecting our
airline and our airport,” said Mr Joseph.
a bit more aggressive strategies from the government in protecting our
airline and our airport,” said Mr Joseph.
He said that
all of Kenya Airways’ “serious competitors” in Africa, all of them
state-owned, are merely “marketing arms of their countries”.
all of Kenya Airways’ “serious competitors” in Africa, all of them
state-owned, are merely “marketing arms of their countries”.
This implies that the carriers do not have to operate on the same survival logic as KQ as they are guaranteed state support.
He added that some of the airlines could and would undercut Kenya’s national carrier because “they don’t care”.
KQ, however, did not provide specific details about the kind of protection it would want from the state.
Regional carriers
Within East Africa, Tanzania and Uganda have moved towards reviving their own aviation industries.
Uganda
recently licensed Vule Airways Limited to operate within East Africa
and London. Tanzanian president John Magufuli last year commissioned Air
Tanzania Company Limited.
recently licensed Vule Airways Limited to operate within East Africa
and London. Tanzanian president John Magufuli last year commissioned Air
Tanzania Company Limited.
KQ’s dominance in East
Africa is partly attributable to the absence of national carriers for
most of the countries in the region.
Africa is partly attributable to the absence of national carriers for
most of the countries in the region.
Kenya Airways is
undergoing a restructuring plan that will lead to a massive dilution of
shareholders while boosting the government to become the largest
shareholder in the carrier.
undergoing a restructuring plan that will lead to a massive dilution of
shareholders while boosting the government to become the largest
shareholder in the carrier.
The restructuring is part of a turnaround plan that is supposed to bring the ailing airline back to profitability.
On Thursday, Mr Mikosz said that he would keep to the revival plan, dubbed Operation Pride, although he does plan to narrow its focus on a few key projects.
Mr
Mikosz has also hired a team of Polish nationals to help him turnaround
the company. The new employees were his colleagues when he pulled
Polish LOT Airlines, his previous employer, from the red.
Mikosz has also hired a team of Polish nationals to help him turnaround
the company. The new employees were his colleagues when he pulled
Polish LOT Airlines, his previous employer, from the red.
The
new hires have signed three month contracts, effective September 1, but
there are indications that these contracts may be extended.
new hires have signed three month contracts, effective September 1, but
there are indications that these contracts may be extended.
The Central Organisation of Trade Unions (COTU) has opposed this recruitment decision.
