Kenya Airways has launched the search for a new CEO in time for the retirement of Titus Naikuni (pictured) next year as the national carrier swung into profits. Photo/Salaton Njau
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The national carrier announced it has extended Mr Naikuni’s contract by a year till the end of 2014 to ensure continuity during a critical expansion period, and that the search for his successor had already started.
Mr Naikuni, 60, has been at the helm of the airline since 2003 and the carrier is counting on him to shepherd KQ’s expansion into new routes that will be aided by the delivery of new fuel-efficient planes next year.
Under his leadership, KQ’s annual sales have grown to more than Sh100 billion from Sh27.4 billion in 2003. The carrier is now flying to 62 destinations from 25 and its plane count had risen 45 in March from 25 when he took the helm.
Kenya Airways has launched the search for a new CEO in time for the retirement of Titus Naikuni next year as the national carrier swung into profits.
The national carrier announced it has extended Mr Naikuni’s contract by a year till the end of 2014 to ensure continuity during a critical expansion period, and that the search for his successor had already started.
Mr Naikuni, 60, has been at the helm of the airline since 2003 and the carrier is counting on him to shepherd KQ’s expansion into new routes that will be aided by the delivery of new fuel-efficient planes next year.
“We have turned the corner. Hopefully next time we stand here we will report excellent results,” said Mr Naikuni.
Under his leadership, KQ’s annual sales have grown to more than Sh100 billion from Sh27.4 billion in 2003.
The carrier is now flying to 62 destinations from 25 and its plane count had risen 45 in March from 25 when he took the helm.
Its stock emerged as one of the most sought after at the Nairobi bourse given that it consistently paid dividends for 14 years save for this year.
The national carrier that is owned 29.8 per cent by the government posted a loss of Sh7.86 billion in the year to March compared to a profit of Sh1.66 billion last year — which was still a 57 per cent drop from the 2011 numbers.
Dutch airline KLM owns a 26.3 per cent stake and has had a say on who occupies the top seat at KQ since its listing at the Nairobi bourse in 1996.
The carrier expects to post higher profits next year, thanks to the planned delivery of fuel-efficient planes and the expansion of its Nairobi hub.
The airline, which this month received its largest plane so far, a Boeing 777-300ER, expects two more of the same next year.
It also expects Boeing to deliver its first four Boeing 787 Dreamliners for long-haul routes starting March to replace an ageing fleet of B-767s. The new planes will offer 20 per cent more fuel efficiency.
Mr Naikuni said another bottleneck would be removed in March when the government completes building a fourth terminal at the Nairobi airport. The carrier has been blaming lack of capacity at the airport for delays in expanding its operations.
Built in the 1970s to handle 2.5 million passengers a year, the airport has been struggling to cope with more than six million passengers every year as its regional importance grew.
KQ’s revenues rose to Sh54.34 billion in the half from Sh49.8 billion helped by a favourable exchange rate since passenger numbers remained little changed.
KQ also benefited from a realised gain of Sh216 million shillings from its fuel hedging positions and a 7.5 per cent drop in running costs to Sh52.6 billion, aided by last year’s job cuts.
But the airline is not putting brakes to cost management. The possibility of opening a hotel in Nairobi to cut costs associated with putting up staff and passengers with delayed flights is on KQ’s radar.
The management will also continue to renegotiate some contracts particularly relating to commission payments and airport landing and handling fees.
KQ shares are trading at a year’s high and Wednesday stood at Sh14.05 compared to Tuesday’s close of Sh13.45. It has gained 45 per cent over the past three month.
