KENYA: Sebastian Mikosz To Steamline And Make Profitable Kenya Airlines

Kenya Airways’ new chief executive Sebastian Mikosz is expected to increase its passenger numbers, further cut its operational costs, optimise its assets, review its networks, and reduce its dependency on shareholder bailouts.

The Polish national and aviation turnaround specialist is expected to push the national carrier towards self-sustenance in the short term, The EastAfrican has learnt.

Transport Cabinet Secretary James Macharia said that the incoming chief executive got the job because of his strong aviation experience, reputation and record, which saw him turn around LOT Polish Airlines to profitability after years of government bailouts.

Kenya Airways is facing the same issues his previous airline did. We were impressed with his strategy, as KQ shares a similar challenge. He is up to the task,Mr Macharia said.

His credentials that got him the job. We will be banking on them to make a success out of our airline.

In him, we got the best candidate and his credentials will be a plus to our national carrier. We believe he has what it takes to navigate us back to profitability in the short term,Mr Macharia said.

Mr Mikosz is expected in Nairobi mid this month. He is reputed to be a cost management sleuth, a factor that KQ badly needs to come out of the red.

Kenya Airways needs $600 million to stay on a straight course.

Mr Mikosz was tapped twice, in 2009 and later again in 2013, by the Polish government to head the LOT Polish Airlines, in which the state has a 69.97 per cent stake.

LOT, like KQ today, was in the middle of a financial crisis, had lost its market share, faced a labour crisis and consistently posted losses, which threatened to send it into bankruptcy.

Within six years, in his two stints as the chief executive, he reduce the headcount, improved liquidity and changed the operations style cutting net losses to $42 million, from a massive $187 million.

But during his first stint at LOT, he faced opposition over his proposed workforce and salary cuts, while cutting down its dependence on government aid, and eventually quit after he failed to meet the government’s timelines in the turnaround plan.

The KQ board is pushing for a quick turnaround. In a previous interview, former board chairman Dennis Awori hinted at seeing the airline back to profitability in the next year or two, with a projected profit of $20 million.

We want him to do the turnaround in the shortest time possible as we have a great outlook for Kenya Airways, Mr Macharia said this week.

The incoming chief executive managed to convert the regional European airline into a long range carrier, optimising the use of its Boeing 787 Dreamliner fleet to achieve success.

He is now expected to replicate that with KQ, whose strength has been intra-Africa networks, where it has been pushing the long haul customers to its Sky Alliance partners, including its other shareholder KLM, through codeshare agreements.

We hope to start flights to the United States soon, and through his strategy, we should see more of such operations across the globe, farther in the Americas and East Asia, Mr Macharia said.

In an interview with the Financial Times, Mr Mikosz said that he wanted as little government aid as possible for the Polish Airlines.

I am always not happy reaching out for government assistance. We want the aid to be as small as possible, so we are pushing ahead with cost cutting measures to squeeze as much savings as possible from all the aspects of our operations, he said.

Kenya Airways board chairman Michael Joseph said that outgoing CEO Mbuvi Ngunze will stay on as an advisor till the end of July.

KENYA: Polish National, Sebastian Mikosz Appointed Kenya Airways CEO

Kenya Airways (KQ) has appointed Sebastian Mikosz, a Polish national, as its group managing director to replace Mbuvi Ngunze who resigned last year a midst a labour crisis.

Mr Mikosz is will assume office on June 1, 2017.

In a statement announcing the appointment on Thursday, KQ chairman Michael Joseph said the new CEO is expected to lead the turnaround plan of the troubled airline.

Mr Ngunze is also expected to stay on as an advisor until the end of July, until when the carrier’s capital optimisation campaign is completed.

The incoming chief executive has been a player in the Polish aviation sector, having led Lot Polish airline for several years until he quit in mid-2015.

Mikosz, who previously served as Polish Airlines CEO, has more than 20 years experience in executive management in both public and private sector.

"He was the CEO of esKy.pl, a leading central European online travel agency and LOT Polish Airlines,"Joseph said.

He congratulated the new appointee and promised the crew's support.

"We wish him every success as he assumes his new responsibility. We have no doubt that with support we will strive to greater heights."

Mikosz's appointment ends months of the global search for the airline's CEO in a recruitment process by international firm Spencer Stuart.

Ngunze headed the troubled airline for the past two years and was due for retirement in March.

The outgoing CEO resigned in November last year amid pressure for him to leave.

The calls intensified after the airline encountered hitches that forced the delay of flights. The union accused Ngunze and his team of being unable to get the airline out of its financial woes.

Management changes saw former chairman Dennis Awori resign prior to the airline's half-year performance update and Joseph appointed to replace him late in October.

On April 28, Ngunze said he was asked to delay his exit to help implement KQ's recovery strategy amid the search for his replacement. They worked on the capital optimisation programme.

KQ is working closely with US investment bank PJT Partners which has been keen on helping it raise new debt and equity funds.

KENYA: Seychelles Tourism Board Signs MOU With Kenya Airways

The Government of Kenya, through the Ministry of Tourism and National Carrier, Kenya Airways yesterday signed a Memorandum of Understanding (MOU) with the Seychelles Tourism Board (STB) to promote tourism and boost intra-Africa trade and travel between two of the world’s most popular tourist destinations.

This was confirmed at a handover ceremony held at The Ministry of Transport and Infrastructure attended by Cabinet Secretaries: Dr. James Macharia, Transport and Communications and Najib Balala, Tourism and Seychelles’ Minister for Tourism, Civil Aviation, Ports and Marine – Mr. Maurice Loustau-Lalanne.

The agreement encapsulates a framework for collaboration between the airline and the Seychelles Tourism Board and is underpinned by the strategic value of tourism to both organizations, and to the airline’s purpose to promote sustainable development in Africa. The MoU covers promoting intra-Africa tourism through joint marketing efforts, participation in events across Africa, and stakeholder education.

'Statistics indicate an increase in arrivals from both destinations to each other’s countries. There is - therefore, a solid ground to further grow and sustain tourism in both destinations' said Tourism Cabinet Secretary Najib Balala.

Kenya Airways has operated into Seychelles since 1972 and today flies four times a week to the island – located a thousand plus kilometres off the coast of Eastern Africa.

'We will work together to come up with tourism-boosting strategies including incentive travels and holiday packages. We are excited by the possibilities offered by Kenya Airways and the support accorded to us by The Government of Kenya' responded Mr. Maurice Loustau-Lalanne, Seychelles’ Minister for Tourism, Civil Aviation, Ports and Marine.

Through its SkyTeam partnership, Kenya Airways offers access to 1,000 destinations across the world and is looking to add the U.S in its repertoire as Kenya is now qualified for Category 1 – which allows the airline to fly to and from the U.S.

'Through this opportunity, Kenya Airways will seek to not only boost the frequency of flights into Seychelles, but will avail regular cargo freight flights on the request of the Seychelles government based on demand for products from Kenya' added Kenya Airways CEO, Mbuvi Ngunze.

KENYA: Kenya Airways Signs Codeshare Agreement With Hong Kong Airlines

Kenya Airways has signed a codeshare agreement with Hong Kong Airlines (HX), on the Bangkok (BKK) – Hong Kong (HKG) route, in a bid to improve connectivity in Asia.

The agreement will see Hong Kong Airlines load Kenya Airways flight code on the Asian carriers’ seven daily flights between HKG and BKK from October 3, 2016. This will allow the national carrier, Kenya Airways; have a daily product between these two key business cities.

It will also enable Hong Kong Airlines passengers to book a through ticket to Nairobi, and the rest of Kenya Airways destinations, especially in Africa.

Kenya Airways Group Managing Director and CEO Mbuvi Ngunze said the partnership will enable customers of both carriers to take maximum benefit of flexibility on each other’s network.

“This partnership will enable us and Hong Kong Airlines to offer our customers seamless connection, especially for our passengers in the region who mainly travel to these Asian cities for business.

Guests will now be able to enjoy daily flights between Hong Kong and Nairobi up from the current three weekly flights,” said Mbuvi.

Li Dianchun, Chief Commercial Officer of Hong Kong Airlines said, “We are very glad to welcome Kenya Airways, a respectful international airline from Africa, as our latest codeshare partner.

Hong Kong Airlines launched the route to Bangkok since 2010 and now the city has become one of our best connected destinations with 34 weekly flights currently.

The codeshare enables passengers of Kenya Airways to choose from our flights between Hong Kong and Bangkok connecting their journey to and from Nairobi with much flexibility.

We look forward to serving passengers from Kenya Airways on board with our Skytrax 4-star quality service.”

The codeshare will provide new growth opportunities for both airlines’ to work together to improve flight schedules options and connectivity.

Passengers will also be able to enjoy seamless onward connection into the Far East Asia and Oceania region through this agreement.

Currently Kenya Airways flies daily to Bangkok with only three onward flights to Hong Kong per week

KENYA: Hong Kong Airways Boosts Kenya Airways With Codeshare Agreement

The codeshare deal between Kenya Airways and Hong Kong Airlines, effective immediately, has widened connectivity between Nairobi and Hong Kong for passengers on Kenya Airways, connecting from the airline's daily flights to Bangkok.

Kenya Airways is after Air Mauritius the second African airline Hong Kong Airlines has signed code share deals with, important as the Chinese carrier does not operate their own flights to Africa and can now rely on KQ's extensive continental network out of Nairobi.

The Hong Kong connections via Bangkok in conjunction with Hong Kong Airlines are in addition to the three direct flights Kenya Airways offers between Nairobi and the Chinese trading power house.

In a related developments are aviation observers now keenly awaiting financial results of H1 of Kenya Airways' financial year to see if the reversal of financial losses has taken hold and better days are ahead for Kenya's national airline.

Chief Executive Mbuvi Ngunze will be leaving the airline at the end of March subject to a new CEO having been identified by that time.

KENYA: Nairobi Strives To Become African Aviation Hub

Kenya Airways' Chairman Michael Joseph went to State House in Nairobi to brief President Uhuru Kenyatta on progress made to restructure the national airline and return it to profitability.

Mr. Joseph updated the President on the current process of recruiting a new Chief Executive of the airline as well as other initiatives aimed at strengthening the national carrier. Current CEO Mr. Mbuvi Ngunze had last year indicated that he was going to leave the airline at the end of Q1 of 2017 but would remain available until a new substantive CEO has been found and taken up his position.

President Kenyatta as expected pledged to support the board’s initiatives noting that Kenya Airways is key to Government’s efforts of making Nairobi an African aviation hub.Earlier in the day was it learned that Kenya Airways had signed a codeshare deal with Hong Kong Airlines aimed to further penetrate the Chinese market which has grown in leaps and bounds over the past years.

KENYA: Kenya Airways Boss Mbuvi Ngunze To Step Down Next Year

The Chief executive officer to the embattled Kenya Airways has announced that he would quit his job in the first quarter of next year, without stating the exact time he would do so.

Mr Mbuvi Ngunze , who has served the troubled airline for five years and two years as CEO and group managing director said that it was natural in the company’s evolution to pass on the baton.

“While I regret this decision, I respect his position. Mbuvi will stay on until a successor is found which is expected to take some months,” Mr Michael Joseph, Kenya Airways board chairman said on Thursday in a statement.

Mr Micheal said he would lead the selection of the next CEO together with the Board Governance and Nominations Committee in what he termed as a “thoughtful process which will focus on producing the right outcomes to lead KQ into its next chapter.”

He added: “I hope to complete this process within the next 3 months and I have already started the process to search for and identify the right candidate with the relevant airline experience.”

Mr Ngunze, who earlier worked as the Chief Commercial Officer, will not immediately leave the airline, although there are suggestions that he’s stepping down due to pressure from trade unions.

“During this period, the Board Chairman and the Group MD and CEO will work with the rest of the KQ senior leadership team to ensure continuity during the transition.

Hence, this should not negatively impact our collaboration with our business partners, financiers and other stakeholders,” Mr Micheal noted.

The Kenya Airlines Pilots Association (Kapla) had earlier called for resignations of top bosses at the airline, including former Chairman Denis Awori and Mr Ngunze.

Mr Awori resigned after 11 months in what was seen as a move by treasury and the largest shareholders KLM, to appease KQ’s employees.

The past months had seen pilots go on strike and were threatening to organise another one if the top leadership at the airline was not changed.

Kenya airways released its half-year results last month, announcing a Kshs4.8 billion loss.

However, the airline board chairman delinked Mr Ngunze from the challenges facing the airline saying: “Although I have to date only worked with him for a short while; it has indeed been my privilege to work with Mbuvi so far. I know that over the last 2 years as Group MD and CEO, the Board has seen the dedication and selfless approach to work that he has had.”

He added that Ngunze has led KQ during an extremely challenging period, but nonetheless brought his unique leadership skills to bear, ensuring that the airline stayed afloat.

KENYA: AFRAA Executive Committee Meets In Nairobi

The Executive Committee of the African Airlines Association (AFRAA) held its 167th meeting on 27 July 2015. The meeting was hosted by Kenya Airways at its headquarters in Nairobi - Kenya under the Chairmanship of Mr. Mbuvi Ngunze, CEO of Kenya Airways. The meeting discussed a wide range of issues some of which have been highlighted below:

The Executive Committee reviewed the Statements of Accounts and Auditors Report for the year ended 31 December 2014 and approved their submission to the 47th Annual General Assembly. They appointed Messrs. Ernst & Young as the external auditors for 2015 and endorsed the proposed budget for submission to the 47th AGA.

On the subject of establishment of a single African sky, the Committee received a presentation by IATA Senior Economist, Mr. James Wiltshire on the experiences from other regions on the implementation of liberalization and its impacts. This comes at a time when the thrust for the opening up of African skies has gained momentum with 11 African States having declared their solemn commitment to the immediate implementation of the Yamoussoukro Decision towards the establishment of a single African Air Transport market by 2017.

With regards to the development of AFRAA land, the meeting received the report on the Project’s concept, financials and funding proposals and authorized the Secretariat to proceed with its implementation under the guidance and support of a Task Force composed of AFRAA member airlines.

The Executive Committee took stock of the performance of the Secretariat’s joint projects and activities in the first half of the year and commended the progress made. The meeting also noted with appreciation the progress on the preparations for the 47th AFRAA Annual General Assembly scheduled to take place from 8-10 November 2015 at the kind invitation of ECAir.

New members and partners

The Executive Committee noted the approval of Cronos Airlines membership and approved the membership for Mauritania Airlines International. AFRAA welcomes the new members to its fraternity.

The membership programme is open to all airlines registered and headquartered in African States. AFRAA members represent over 85% of total international traffic carried by all African airlines.

The meeting received and approved the partnership applications for L’Académie Tuniso–Française de Formation en Sûreté de l’Aviation Civile (AFSAC) as a Full Partner and Manyatta Engineering Services Ltd as an Associate Partner.

Tour of Kenya Airways facilities

Following the conclusion of the meeting the Executive Committee made a tour of Kenya Airways’ world class facilities at Kenya Airways Technical and Kenya Airways Pride Center.