Kenya Airways Faces KES 80M Loss Amid JKIA Strike
The recent strike by aviation workers at Jomo Kenyatta International Airport (JKIA) opposing the proposed takeover by the Indian conglomerate, Adani Group, has inflicted severe financial losses on Kenya Airways (KQ).
Kenya Airways CEO, Allan Kilavuka, revealed that the one-day work stoppage led to an estimated revenue loss of KES 80 million, coupled with additional operational costs.
Kilavuka stated, “The strike’s impact when considering time delays, rebooking, compensation, and other related expenses, totals around KES 80 million for just one day of disruption.”
Despite this obstacle, Kenya Airways remains focused on expanding its share in government-related travel, which currently comprises 40% of its business.
Kilavuka highlighted the need for increased efficiency to attract more government contracts and international dignitaries to the airline.
Speaking at the unveiling of the Asanti Executive Hub at the Kenyatta International Convention Centre (KICC), Kilavuka said the hub is designed to streamline travel for government officials.
“Government travel contributes to about 40% of our revenue. We aim to simplify the government’s decision to fly with us, and that’s the purpose behind launching the Asanti Executive Hub,” Kilavuka added.
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During the launch, Kenya Airways was urged to enhance its product offerings, boost operational efficiency, and improve reliability. Principal Administrative Secretary Arthur Osiya emphasized the need for KQ to capitalize on the government travel market.
“KQ must eliminate minor inefficiencies that push people to seek alternatives. This is your market; pursue it assertively. You’re not as aggressive as you should be in tapping into government travel,” Osiya noted.
“KQ is the airline of choice, but don’t get too comfortable. I was instructed to convey this message as is.”
The Asanti Executive Hub’s strategic location at KICC is part of a partnership aimed at strengthening Kenya’s position as a prime global destination for meetings, incentives, conferences, and exhibitions (MICE).
This collaboration is expected to attract more international conferences to Kenya, fueling economic growth and showcasing the country’s capacity to host top-tier events.
KICC CEO James Mwaura underscored the need for cooperation between KICC, Kenya Airways, and other partners in securing bids for global conferences.
“Leading MICE destinations collaborate closely with international airlines, hotels, and other key players to secure major international conferences. We recognize the importance of uniting our expertise to achieve shared goals,” Mwaura explained.
Kenya Airways Faces KES 80M Loss Amid JKIA Strike
