Rank: Elder Joined: 6/23/2009 Posts: 14,371 Location: nairobi
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Zichi wrote:peep wrote:Before the state buyout, they should return our shares that were wiped out last year by over 70%.
After the buyout, the new owner should:
1. Sack everyone (especially the pilots) then recruit afresh at much lower rates. There's a glut of airline staff in the world now
2. Ban all new recruits from membership to unions
3. Cancel all the deals with the SPVs sitting in between KQ and Boeing. These leaches are draining the airline. I hear that they are not at the Boeing HQ, but here with us.
4. Review fuel contracts
KQ's problems have never been about the staff. Even if you paid evergone 100 dollars it will still make a loss. According to their last report staff costs are less than 15% of their cost structure. Kenya is not Ethiopia, you cannot ban a worker from being unionised. The SPVs unfortunately can not be cancelled without great cost-maybe renegotiated. The new KQ will still need to lease and buy aircraft and thus cannot mess up its reputation internationally. Fuel contracts issues were sorted during the latter reign of Mbuvi Staff costs doesn't relate only to the payslip but on actions by the staff that lead to increased cost, here we refer to HOTAC, poor OTP and flagrant theft by servant on dubious hedging strategy, illogical bank pricing on facilities, ticketing schemes.. Senate did a report on this, led by Prof Nyongo. And don't get me wrong, there are good KQ staff, but they are not the majority. The corporate culture there is tilted towards self enrichment. KQ the company, should ideally be a profitable firm, very easily.. COOP, KEGN, MTNU
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