Kenya Airways retrenches 38 employees in its second restructuring phase. The process is in line with the airline’s turnaround strategy ‘Operation Pride’. Operation Pride focuses on three main priorities- closing profitability gap, refocusing the business model and optimizing the capital of the company. The first phase carried out in July 2016 affected about 80 staff members.
The strategy has started bearing fruits for the struggling national carrier with the business reporting operational profit as at its half year 2016/2017 results.
According to release from CEO and Group Managing Director, Mbuvi Ngunze states “After implementation of Phase 1 of the restructuring process, we continued to look for ways of productivity and efficiency gains as well as up skilling within the business. The second Phase starting today is in full compliance with the labour law, Collective Bargaining Agreements (CBA) and individual staff member’s contract as appropriate.”
In March 31, 2016, a notice was issued to right size through staff redundancies and redeployment was issued as required by law and an update given to staff on May 4, 2016 following intense consultations with all partied involved.
Ngunze has assured the staff that the restructuring though painful will be handled as per the Airline’s values and just as Phase 1, employee assistance will be offered for affected staff.
At the beginning of the year, KQ signed a code share agreement with Hong Kong Airline in a bid to improve connectivity in Asia via Bangkok-Hong Kong route. The partnership will enable customers of both carriers to take maximum benefit of flexibility on each others network.