Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Committee chairman, Kisumu Senator Anyang’ Nyong’o says this was after the committee held several meetings, including 2 public hearings, which is yet complete its work/file

Kenya

Senate identifies five major causes of KQ losses

Committee chairman, Kisumu Senator Anyang’ Nyong’o says this was after the committee held several meetings, including 2 public hearings, which is yet complete its work/file

Committee chairman, Kisumu Senator Anyang’ Nyong’o says this was after the committee held several meetings, including 2 public hearings, which is yet complete its work/file

NAIROBI, Kenya, Aug 3- A Select Committee established by the Senate to look into the crisis facing Kenya Airways, says it has discovered major reasons that has led to the airline’s massive losses in their preliminary report.

Committee chairman, Kisumu Senator Anyang’ Nyong’o says this was after the committee held several meetings, including two public hearings, which is yet complete its work.

Five major problems discovered by the committee include;
• 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,
• Expensive ticketing which are non competitive in the market leading to loss of passengers as well as revenue,
• 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,
• Problematic human resources policy and practices causing long drawn industrial unrest detrimental to establishing a healthy business environment in the company and,
• Frequent cancellation of flights causing inconvenience and poor relationship with passengers, who consequently abandon using the airline.

“Prima facie evidence so far gathered shows that the airline faces major problems which the committee is looking deeply into with management as well as other stakeholders,” Nyong’o said on Monday.

In 2015, Kenya Airways announced a net loss of Sh26billion, the highest in Kenyan corporate history.

READ: KQ flies into more turbulence with Sh25.7bn loss

Until now, investors and a majority of Kenyans are seeking answers as to why the management watched the only national airline fall, without seeking help.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Headlines

NAIROBI, Kenya, Mar 16 – The World Bank has given the Kenyan government USD 60 Million (Sh6.1 billion) to help combat the deadly coronavirus pandemic...