Kenya Airways pilots want deal with KLM terminated

Kenya Airways’ pilots want the partnership between the national carrier and Dutch airline KLM terminated, even as they maintained their push for the exit of chief executive Mbuvi Ngunze and board chairman Dennis Awori.

The pilots, through their union the Kenya Airline Pilots Association (Kalpa), argue that the partnership is lopsided in favour of KLM.

Kenya Airways has a route code sharing partnership with KLM, which is also the national carrier’s second-biggest shareholder with a 26.7 per cent stake.

The code share agreement allows Kenya Airways to put its international code on KLM operated flights into Europe and other destinations, offering passengers easier connectivity.

The airline reported an after tax loss of Sh26.2 billion in the year ending March. KQ, as the national carrier is known by its international code, had the year before recorded a Sh25.7 billion net loss. Kalpa says the over 20 year strategic partnership has been skewed in favour of KLM.

Speaking at a press conference on Wednesday, Kalpa secretary general Paul Gichinga said while KQ has lost market presence in Europe, the Dutch carrier continues to expand its network in the African markets, providing direct competition.

“Twenty years ago there was still KQ routes to Copenhagen, Zurich and the market share was bigger in Europe. Since then we have only been operating London, Amsterdam and just recently ended up opening Paris. Look at what KLM has done in the same time, they’re all over Africa where they never used to fly before,” he said.

In East Africa alone, KLM flies to Ethiopia, Uganda, Tanzania and Rwanda while maintaining other prime routes across the continent.

“KLM is not a partner but rather a competitor to KQ, this issue has been highlighted in the past by the Senate committee and by audit findings of New York-based firm, Seabury. It defies logic why Kenya Airways will comfortably cede its strategic routes and managerial dockets to them,” he said.

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Kalpa claims that the Chief Operating Officer and Head of Network planning along with five other directors were hired from KLM without due competitive recruitment.

The new chief operating officer, Jan de Vegt, picked earlier this month, was the managing director of a KLM subsidiary, Cobalt Ground Solutions.

Kalpa also faulted the implementation of the first phase of the carrier’s retrenchment which saw 80 staff sent home. Once completed it could see as many as 600 KQ staff, representing 15 per cent of the total workforce, being declared redundant or redeployed.

Mr Gichinga noted that national carrier has retained foreign employees with more favourable terms of service at the expense of locals with matching skillsets and experience.

“Even as they sent Kenyans home they still maintain about 70 cabin crew from across the globe most of whom were acquired from KLM,” he said.

In February the KQ board appointed consulting firm Deloitte to undertake a forensic audit of the airline’s financial decisions dating back six years.

The firm was to stay for three months within which it was expected to handover two interim reports before submitting the final one.

Kalpa maintains that the only way turnaround the airline is to conclude the forensic audit to root out the corruption contributing to KQs loses.

“There seems to be deliberate action and interference not to investigate fuel hedging, aircraft leasing, revenue collection in regards to the ticket scandals in Europe and other key areas in the business. We believed that forensic audit would send more directors home but even with the partial report released no high level manager has been touched showing there is deliberate action not to hold those responsible of running  KQ to the ground accountable,” he said.