Why Transport CS nominee Chirchir wants Gov't shares in KQ increased from 48% to 80%
Roads and Transport Cabinet Secretary nominee
Davis Chirchir has recommended that the Kenyan government increase its
ownership in national carrier Kenya Airways from the current 48.9% to 80%,
suggesting that the move will revitalise the ailing airline.
Chirchir’s
statement came during his vetting by the National Assembly Committee on Appointments
on Friday, as he outlined a comprehensive strategy to address the airline's
ongoing financial challenges.
According
to Chirchir, despite the Kenyan government injecting an estimated Ksh.600
billion into the airline, it has struggled to remain operationally afloat amid
persistent financial constraints.
"The
reforms at the airline needs a lot of communication and ownership by KQ
employees. We are going to sit down and get them to understand that there is a
problem that must be sorted out internally," he said.
Chirchir
also pointed out that KQ's current fleet, which includes a high number of
Embraer aircraft, does not meet the demands of long-haul flights, thereby
limiting the airline's competitive edge.
The
mismatch between fleet capabilities and market needs, Chirchir noted, has
contributed to the airline's struggles, making it less attractive for
passengers who carry substantial luggage.
"It
is self defeating to have the highest fleet of about 13 Embraers aeroplanes.
Customers have to choose alternating flights when they might have wanted to
actually fly on Kenya Airways," he said.
To
address these issues, Chirchir proposed a dual approach: enhancing government
control while also seeking partnerships to bolster KQ's global aviation
network.
"In
its 2023 accounts, KQ had an operating profit of Ksh.10 billion. We need to
look at what they are doing right and build on," he said.
"I
think we need to bring in a partner. Successful hotels, for example, build
networks around the world to be able to push their customers into their
networks. We need to build a network of a supporting airline that we can
leverage on to be able to bring KQ out of the current challenge it is
facing."
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