Kenya Airways (KQ) announced Tuesday, June 8, that it had chosen a British consulting firm, Steer Group, to develop its recovery plans. This decision follows the situation of an airline which is suffering the full brunt of the effects of the coronavirus pandemic. The disease resulted in considerable financial losses as well as a drop in the number of passengers.
Allan Kilavuka, CEO of KQ, said Kenya Airways has developed short, medium and long term strategies to help achieve two main goals. It’s about surviving today’s depressed market, and implementing strategies that will make the business more sustainable in the long run. Steer Group, he stresses, must validate these strategies and make additional or different recommendations to help achieve the goals.
The structure should examine and propose the cheapest and most efficient options to bring Kenya Airways back to a sound financial base. Last March, the International Monetary Fund (IMF) granted Kenya a 255 billion shillings ($ 2.3 billion) loan to Kenya to develop a viable recovery strategy for the national airline.
According to statistics, KQ’s net loss nearly tripled to 36.2 billion shillings (336 million USD) in the year ended December 2020. This was the worst performance on record in the year. history of the airline following the negative effects of the Covid-19 health crisis.