Company Industry
Strike pushes KQ into a headwind
KQ faces turbulent times ahead as rising labour costs bite into earnings
The manufacturer, Boeing, has pushed delivery by three years, forcing the airline to look at other alternatives including acquiring an Airbus fleet that would lead to increased costs of setting up a maintenance and operations unit for the model.
As the airline tries to resume normal operations, its management and union leaders were summoned by the Prime Minister Raila Odinga yesterday evening to discuss lasting solutions that would ensure this did not happen again as it had a major impact on the country as a whole.
“We shall sit and see where talks broke down and ensure this does not happen again,” CEO Titus Naikuni said. The airline signed a recognition agreement with Aviation and Allied Workers Union in March this year.
RSS