NAIROBI, Kenya, Aug 23 – National Carrier Kenya Airways has moved to expand its investments portfolio by venturing into a shuttle business.
In a newspaper advert, the airline said it has introduced KQ shuttle buses that will ferry passengers from the Central Business District to Jomo Kenyatta International Airport (JKIA) for only Sh1,000.
The KQ shuttle buses will depart from the Central Business District at 6am, 11am and 5pm. They will depart from JKIA to the city centre at 9am, 2pm and 9pm.
“Spacious KQ shuttle buses now leave the Sirios Car Park on Loita Street CBD, whisking you away in comfort and style. Why go through the hassle of finding your own way to JKIA?” the firm asked.
It costs Sh100 to travel to JKIA with a public service vehicle while fare estimates for Uber Taxi are between Sh870 to Sh1093.
The shuttles will allow passengers two pieces of luggage and a carry-on bag.
The firm is currently working on a turnaround strategy that includes staff right sizing, and rationalising its fleet through selling off and leasing some of its surplus aircraft.
The airline in January 2016 sold two aircraft to Oklahoma based Omni Air international at an estimated Sh14.6 billion.
An additional five aircraft have been sub-leased. The airline is however yet to sell its 30 acre piece of land at Embakasi.
The airline is set to send home up to 600 employees and has already sent home 80.
The firm posted Sh26.2 billion net loss in its 2016 full year results impacted by Sh9.7 billion foreign exchange losses.
This is a marginal loss increase compared to Sh25 billion losses it made in 2015.
The losses are also attributed to increased cost of borrowing in the period under review incurring an additional Sh2.3 billion in interest expense.
Also, the movement in international oil prices during the year unfavourably impacted the Group’s fuel hedges resulting into an additional Sh5 billion in realised fuel hedges losses.
The firm however recorded a 75 per cent reduction in operating loss from Sh16.3 billion in 2015 to Sh4.1 billion in the period under review.