KQ Managers Take 35% Pay Cut in Coronavirus Pandemic

Kenya Airways top managers led by the chief executive, Allan Kilavuka, will take a 35% pay cut from April 1, 2020.

On Tuesday, March 18, 2020, Mr. Kilavuka, in a memo addressing the staff, noted that the pay cut was a measure put in place to keep the airline afloat amid the coronavirus outbreak that is grounding airlines across the globe.

Senior managers at the national carrier will take a 25% pay cut and directors will work for free.

In spite of the executives giving up part of their payment, it will only save the company less than Sh60 million in 12 months.

In the half-year ended June 2019, the National Securities Exchange-listed firm, made a net loss of Sh8.5 billion more than double the net loss of Sh4 billion the year before due to higher cost compared to revenues.

The move comes barely a day after the International Air Transport Association (IATA) reported that airlines globally might require up to $200 billion in government aid so as to survive the COVID-19 pandemic.

Kenya Airways has suspended flights to various destinations including Malindi, Rome, Geneva, Guangzhou, Djibouti, Mogadishu, Khartoum, Bangkok, and also reduced frequencies to destinations such as London, Dubai, Johannesburg, Kigali and Paris.

Besides triggering major financial losses, the severe decrease in operations has seen airlines risk losing their landing slots in airports around the world.