Kenya Airways requires at least $500 m to battle out the coronavirus epidemic after first-half sales plummeted nearly 50 percent, CEO Allan Kilavuka said in an interview.
Bloomberg stated that Kenya Airways, which is 49% state-owned, should also be entirely nationalized under a holding arrangement close to that of the Ethiopian Airlines Group. Ethiopian Airlines desired to help the South African Airways too.
Meanwhile, the company is concentrating on reducing its main fixed expenses, staffing, and air-lease expenditure by $66 m through the end of 2021.
Forecasts imply that Kenya Airways would need merely 24 aircraft in the next two or three years, out of such a current fleet of 34 passenger jets and two freighters, Allan said. Discussions on exchanging fixed leases for consumption-based contracts are all under progress with six leasing agencies, whereas other plans also include the transfer of new short-term freight airliners.
Negotiations with workers aim to reduce expenses without putting an end to the 1,400 job losses that the organization claims might be appropriate. In order to match continued sales losses, initiatives would need to produce 40 percent savings, the CEO added. Employees draw reduced wages in the interim and delegating the remainder to a later date.
After the company’s debts expanded to 218.9 billion Kenyan shillings only at the end of June, recapitalization will pare debt, thus generating funds for growth once markets start to recover, Allan said.