SELECT COMMITTEE OF THE SENATE INQUIRING INTO THE AFFAIRS OF KENYA AIRWAYS
Kenyans are aware that the Senate established a Select Committee to look into the crisis facing Kenya Airways, the national flag career, after I moved a motion to that effect over 2 months ago. The Committee has held several meetings, including 2 public hearings, but the work is not yet completed.
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. These can be summarized as follows:
(1) 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;
(2) Expensive ticketing which are non competitive in the market leading to loss of passengers as well as revenue;
(3) 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;
(4) Problematic human resources policy and practices causing long drawn industrial unrest detrimental to establishing a healthy business environment in the company.
(5) Frequent cancellation of flights causing inconvenience and poor relationship with passengers, who consequently abandon using the airline.
Prof. P. Anyangâ€™ Nyongâ€™o â€“ EGH, MP
Senator â€“ Kisumu County
Chairman â€“ Select Committee