KQ Boss Pay Slashed by 35% as Corona Troubles Sector
National Carrier, Kenya Airway’s CEO, Allan Kilavuka, has agreed to a 35% pay cut to reduce costs in a bid to optimize operations.
The airline, through the Board of Directors, further agreed to forego their monthly fees and sitting allowances as from April 1.
The executive committee members also agreed to have 25% of the salaries slashed as of April 1.
The move came after the airline experiencing a negative impact following the suspension of flights on the China route in a bid to control the spread of coronavirus.
Last year, the airline had reported a Sh5.9 billion in losses up from Sh5.1 billion in 2017.
According to the KQ chairman Michael Joseph, the airline has been facing increased competition from other airlines in the region, which has increased pressure on pricing to remain competitive.
Latest indicate that when it comes to generating revenue in Africa’s airspace, global carriers are the biggest winners with only two African airlines in the top 10 most lucrative air routes in Africa.
Recently, Dubai Airlines signed a deal with Rwandair to have customers fly directly to and from Dubai with the lowest prices in the region.