The year of decision
Kenya Airways is one of the largest and most important airlines in Africa and operates one of the most modern aircraft fleets on the continent. But this is no guarantee that the company operates profitably and successfully.
The SkyTeam member with a hub in Nairobi is undergoing an essential restructuring to ensure that the horrendous losses of the past are no longer repeated. Since June 1, 2017, the former CEO of LOT Polish Airlines, Sebastian Mikosz, is now CEO of Kenya Airways. Kurt Hofmann conducted an exclusive interview with Mikosz.
Connoisseur Circle: Kenya Airways is undergoing a fundamental restructuring. What is the current situation?
SEBASTIAN MIKSOZ: The financial restructuring has significantly improved our situation but the healing process of Kenya Airways is not over yet. We need to continue to address our revenue and cost issues. But the environment in which we operate is still very difficult. Even if we improve as a transportation company, there are still many challenges. And these can be found on all fronts. The most important one is the need to change the mentality of our employees. We have to convince them to do things a little "differently" in future. Namely, to move from the attitude and approach of a public service to a competitive company. This is the biggest challenge. There are also problems with productivity, Kenya Airways has too many employees. And civil aviation is changing rapidly.
How are the employees reacting to the necessary changes?
Everyone understands that Kenya Airways has been given a second chance. In general, there is a great expectation that processes within the company will have to be done differently in the future. The understanding of the need for change is very present. However, Kenya Airways continues to have very strong unions that are used to fighting hard when they do not accept something. Some unions are strongly supported by the political side, so we could still face difficult situations this year.
2018, the year of change for Kenya Airways?
The launch of our first route to the US, to New York JFK, is the first element of change. It is a very nice moment because it is an element of growth. But we really have to understand that we are at the beginning of a very serious change process. The financial situation is a challenge, fuel costs are rising. At the same time, we need to reduce our overall costs, our infrastructure needs to be improved, we need a better starting position with our suppliers, digitalization is also an important issue. Kenya Airways' maintenance operation has 550 employees. It is well positioned in terms of quality, but we need to start selling our maintenance capacities to third-party airlines. Residual capacities of our flight simulators should also be marketed to other airlines. There are many measures to be implemented.
How important is Kenya Airways' membership of SkyTeam?
SkyTeam is very important in terms of partnership. We are currently focusing on expanding our joint ventures. The joint venture between Kenya Airways and KLM will be expanded with Air France. Then I am also counting on a good cooperation with Delta Air Lines, which is currently completely reorganizing its transatlantic business with Virgin Atlantic.
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