Kenya Airways (KQ) has laid off 182 pilots, alongside more than 400 cabin crew, even as plans are underway to nationalize the airline. Its shares are currently suspended from trading at the Nairobi Securities Exchange (NSE).
The affected employees have been given a one month notice with effect from 24th June 2020. They will be paid the following dues:
- •Salary and all applicable allowances up to and including 24th June 2020
- •One month salary in lieu of notice
- •Accrued leave days as at 24th June 2020
The Star reports that it will cost the airline an average of KSh30 million to send one senior captain home on full benefits, with an estimated KSh5.4 billion required for the overall downsizing.
Furthermore, the Group CEO Allan Kilavuka has asked some workers to go on unpaid leave, with effect from 6th July 2020.
Early this month, Kenya Airways (KQ) sent home more workers, trainees in particular, seeking to reduce the airline’s expenditure on salaries so as to remain afloat during the coronavirus pandemic.
In March this year, at the onset of the coronavirus, Kenya Airways sent part of its workforce of about 4,000 employees on unpaid leave with those remaining taking pay-cuts of between 35% and 75%.
The layoffs are happening even as the Government plans to establish the Kenya Aviation Corporation, an entity it will use to take over operations of Kenya Airways upon its nationalization and delisting from the NSE (Nairobi Securities Exchange).
The National Aviation Management Bill, 2020, which has already been tabled in parliament, plans to establish this corporation as a holding company for Kenya Airways and Kenya Airports Authority (KAA).
As one of the entities under this state corporation, Kenya Airways will carry on business as carriers of air passengers, cargo, mail, and goods in Kenya and elsewhere. The airline will have an initial share capital of KSh7.5 billion and will perform its functions as directed by the Kenya Aviation Corporation Board.
With the restrictions on intercounty movements lifted, local air travel shall resume on 15th July 2020, with strict adherence to all applicable guidelines and protocols from both the Ministry of Health and civil aviation authorities.
International flights shall resume on 1st August 2020.
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