Corporate News
JamboJet operates flights between Mombasa, Eldoret, Nairobi and Mombasa. PHOTO | FILE
By MUGAMBI MUTEGI
In Summary
- The smooth implementing of this succession plan is significant as the airline battles to get back to profitability while faced with several challenges, which a new team at the top will have to surmount.
- The COO will assist Mr Ngunze in attempting to bring KQ back to profitability after two consecutive years in the red.
Kenya Airways
has begun the process of recruiting a chief operating officer (COO) a
month after the incumbent, Mbuvi Ngunze, was picked as the incoming CEO
of the airline.
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The national carrier has engaged consultancy firm
PricewaterhouseCoopers to hire a replacement for Mr Ngunze, who will
take over as CEO beginning December after the retirement of long-serving
boss Titus Naikuni.
The smooth implementing of this succession plan is
significant as the airline battles to get back to profitability while
faced with several challenges, which a new team at the top will have to
surmount.
“The successful candidate will also be expected to
have excellent people management and communication skills, strategic
aptitude and the ability to plan and implement strategy for the
enhancement of the airline’s business,” says the job notice.
The new COO will join KQ at a time the airline is
implementing an ambitious 10-year expansion strategy that includes fleet
and route additions, with grand plans to fly to every African country
by 2016. The airline is investing Sh87 billion in the current financial
year to acquire more aircraft.
The COO will assist Mr Ngunze in attempting to bring KQ back to profitability after two consecutive years in the red.
KQ has recently faced a number of setbacks,
including travel warnings that the US and some European countries have
issued to their citizens in the wake of rising insecurity in the
country.
Rising revenue and falling costs saw the airline
cut its losses before tax by 56.8 per cent for the full-year ended March
2014 to post Sh3.38 billion loss compared to the previous year’s Sh7.84
billion.
The airline’s revenue increased by 7.2 per cent to
Sh106 billion from the previous year’s Sh98.6 billion, helped by higher
yields from its passenger business.
KQ is also having to battle escalating fuel prices and increased competition from rivals.
KQ is also having to battle escalating fuel prices and increased competition from rivals.
The latest problem to befall the airline in the
past few weeks is the potential losses it is facing after it cancelled
flights to Ebola-hit countries in West Africa, one of its most lucrative
routes in the continent.
“The COO is responsible for managing the airline’s
day-to-day operations with a focus on strategic, tactical and short term
operations management,” the job notice states.
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