KENYA AIRWAYS HALF YEAR RESULTS UP AS NEW E190 ARRIVES IN NAIROBI
As the Pride of Africa took delivery of their latest Embraer E190 jet yesterday in Nairobi, information has been released that the half year results of the airline, compared to 2011, showed significant growth by about 20.6 percent, driven by increased demand for airtravel, cargo and mail shipments.
Run away cost however continue to pose a serious threat to the profitability of the airline which is currently engaged in a cost cutting programme through selected outsourcing of staff and other rationalization measures. Approved by the board of directors of the airline, it sets the carrier on collision course with the countrys Prime Minister, who, true to his socialist background, came out on the side of the Transport and Allied Workers Union attempting to direct the flag carrier to stop their efforts, only cleared yesterday by the Industrial Court. Where does that man take his authority from by giving a directive to a company quoted on the stock exchanges of Nairobi, Dar and Kampala? Siding with the union makes a mockery out of due process. And is government not represented on the board of the airline which approved their cost cutting measures? Or is this simply vote fishing ahead of the elections to make himself champion of workers rights? If so, let the economy beware commented a regular aviation source on this piece of breaking news as consternation spread how a senior government official could so blatantly use his office to ostensibly promote his campaign by laying into a publicly quoted company.
It is also understood from another source close to the airline that discussions are in fact ongoing between the airline and union representatives, while from other sources it was learned that a number of staff are ready to sign on to the voluntary early retirement scheme offered to them.
The airline also took the opportunity when receiving their latest bird to affirm plans that by the end of 2013 they intend to fly to all African political and commercial capitals, offering the continent connections through Nairobi to the rest of the world and in particular into the expanding network of destinations in the Gulf, the Indian subcontinent and beyond into the Far East and China. Watch this space.