KQ suffers Ksh.80M loss in strike-related disruptions at JKIA

According to the airline’s CEO, Allan Kilavuka, the one-day strike resulted in an estimated KES 80 million in revenue loss and additional operational costs.

“The strike that happened the other day, if you look at the cost of time, rebooking, compensation, and other expenses, we estimate the total cost to be about KES 80 million for that one-day disruption,” Kilavuka said.

Despite this setback, Kenya Airways is continuing to make investments aimed at expanding its share of government-related travel, which currently stands at 40%. 

Kilavuka emphasized the importance of increasing the airline's efficiency to attract more government business and international dignitaries. 

He spoke at the launch of the Asanti Executive Hub, a one-stop shop designed to meet the travel needs of government officials, located at the Kenyatta International Convention Centre (KICC).

“Government travel makes up about 40% of our business. We want to make it easier for the government to choose us, and that’s why we are launching the Asanti Executive Hub,” Kilavuka explained.

At the event, KQ was urged to improve its product offerings, enhance efficiency, and boost reliability. Principal Administrative Secretary Arthur Osiya stressed the need for KQ to be more aggressive in harnessing the government travel market.

“KQ needs to avoid small weaknesses that give people excuses to go elsewhere. This is your market; work on it aggressively. You are not as aggressive as you should be towards tapping into this government business,” Osiya remarked. 

“KQ is the preferred airline, but don’t become complacent. I was asked to deliver this message exactly as it is.”

The location of the new Asanti Executive Hub is part of a partnership with KICC, aimed at enhancing Kenya’s visibility and competitiveness as a global destination for meetings, incentives, conferences, and exhibitions (MICE). 

This initiative seeks to attract more international conferences to Kenya, boosting the economy by showcasing the country’s potential to host world-class events.

KICC CEO James Mwaura highlighted the importance of collaboration between KICC, Kenya Airways, and other stakeholders in bidding for major international conferences.

“World-leading MICE destinations work closely with international carriers, hotels, and other stakeholders to bid for major international conferences. We recognize the need to bring our special competencies together to achieve our common objectives,” Mwaura said.