The recent strike by Kenyan aviation workers at Jomo Kenyatta International Airport (JKIA), protesting against the proposed takeover by India’s Adani Group, has resulted in significant losses for Kenya Airways (KQ).
According to the airline’s CEO, Allan Kilavuka, the one-day strike resulted in an estimated Sh80 million loss in revenue and additional operational costs.
“The strike that happened the other day, if you look at the cost of time, re-booking, compensation and other expenses, we estimate the total cost at about Sh80 million for that one-day disruption,” said Kilavuka.
Despite this setback, Kenya Airways continues to invest in increasing its share of government travel, which currently stands at 40 per cent.
Kilavuka stressed the importance of improving the airline’s efficiency to attract more government business and international dignitaries.
He was speaking at the launch of the Asanti Executive Hub, a one-stop shop for the travel needs of government officials at the Kenyatta International Convention Centre (KICC).
“Government travel accounts for 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,” explained Kilavuka.
At the event, KQ was urged to improve its product offering, increase efficiency and enhance reliability. Principal Administrative Secretary Arthur Osiya stressed the need for KQ to be more aggressive in exploiting the government travel market.
“KQ must avoid small weaknesses that give people an excuse to go elsewhere. This is your market; be aggressive. You are not as aggressive as you should be in tapping this government business,” Osiya said.
“KQ is the airline of choice, but don’t get complacent. I have been 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).
The initiative aims to attract more international conferences to Kenya and boost the economy by showcasing the country’s potential to host world-class events.
KICC CEO James Mwaura emphasised the importance of collaboration between KICC, Kenya Airways and other stakeholders in bidding for major international conferences.
“The world’s leading MICE destinations work closely with international airlines, hotels and other stakeholders to bid for major international conferences. We recognise the need to bring together our specific competencies to achieve our common goals,” said Mwaura.
