Kenya Airways says planned pilots’ strike will impact profits

October 13, 2016
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In a press statement, the airline indicated that that the threat is already costing Kenya Airways significant losses as passengers have begun to make cancellations immediately the action was published/FILE
In a press statement, the airline indicated that that the threat is already costing Kenya Airways significant losses as passengers have begun to make cancellations immediately the action was published/FILE

, NAIROBI, Kenya, Oct 13 – Kenya Airways says the planned strike by the Kenya Airlines Pilots Association (KAPLA) is unjustified and uncalled for as it will result in more losses to the airline.

In a press statement, the airline indicated that that the threat is already costing Kenya Airways significant losses as passengers have begun to make cancellations immediately the action was published.

“Kenya Airways has demonstrated its commitment to regaining its position as the Pride of Africa, by decisively reversing the downward financial performance spiral that it has been on,” it said.

It stated that before the strike threat, it had registered significant improvement to its finances.

“This is clearly demonstrated in its 2015/16 financial results, which the shareholders approved at the AGM held on 29 September 2016. The financial results for the first half of 2016/17 will be announced on 27th October 2016.”

It further pointed out that there is no basis for the action since it is outside the scope of the pilots’ association collective bargaining agreement and cited the last industrial action early this year which cost the airline Sh200 million.

“The last industrial action by KALPA in April 2016 cost Kenya Airways Sh200 million in revenues and cost in a single day, which KALPA did not pay for. In addition we risk losing critical support of financiers and suppliers that Kenya Airways is in negotiations with.”

“Our half-year results to be released at the end of this month reflect an increase of 89,000 guests to 2.23 million compared to the same period last year, an improvement in cabin factor by 3% to 71 percent, an operating profit improvement of sh2 billion and a reduction in net losses of Sh7 billion, from Sh12 billion to Sh5 billion,” it indicated.

It indicated that the association does not forthwith retract its statement; Kenya Airways will have to immediately stop selling tickets on its network, given the costs associated with selling tickets and not carrying these passengers.

The airline explained that in addition, it risked losing critical support of financiers and suppliers that Kenya Airways is in negotiations with.

The Board thanked the entire staff compliment for their contribution towards the recovery of the airline and encourages them to continue to do so.

Kenya Airways said that it will continue to seek an amicable resolution of all issues raised by the union and urges patience in the matter.

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