Sebastian Mikosz, who was hired in June last year, signed a two-year contract ending in 2019, the company has disclosed in its latest annual report.
The short contract indicates that he was brought in to quickly fix the troubled airline which stumbled from a mix of massive debts, mismanagement and allegations of fraud.
Kenya Airways #ticker:KQ chief executive Sebastian Mikosz’s contract is set to run out next year, placing the national carrier in an executive search mode if it decides not to renew the Polish national’s term.
Mr Mikosz, who was hired in June last year, signed a two-year contract ending in 2019, the company has disclosed in its latest annual report.
His employment terms provide for a six-month notice period.
The short contract indicates that he was brought in to quickly fix the troubled airline which stumbled from a mix of massive debts, mismanagement and allegations of fraud.
Mr Mikosz is credited with turning around LOT Polish Airlines where he held the position of chief executive twice. He hired five senior managers from his former employer last September to help him restructure KQ.
Among other measures, Mr Mikosz has focused on cutting expenses including overheads and fleet ownership costs. This contributed to operating profit margin doubling to 1.6 per cent in the nine months ended December compared to 0.8 per cent in the 12 months through March 2017.
Overall net losses narrowed to Sh6 billion from Sh9.9 billion over the same period. KQ’s net assets also improved to Sh470 million from a negative Sh44.9 billion thanks to a debt-to-equity conversion. KQ, however, appears to need a lot more new capital to survive, with the airline and Kenya Airports Authority (KAA) mooting a merger to share costs. The airline paid Mr Mikosz a total of Sh46.6 million in the seven months ended December 2017 comprising a salary (Sh24.6 million), allowances (Sh18.6 million) and benefits (Sh3.4 million).
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