KQ reveals it lost Sh80 million during demos against JKIA-Adani deal

Kenya Airways(KQ) lost at least Sh80 million during recent demonstrations against the government's deal with Adani Company over the Jomo Kenyatta International Airport (JKIA) leasing deal.

Allan Kilavuka, the airline's Chief Executive Officer, on Monday disclosed that the flight disruptions caused by the protests resulted in considerable losses.

"Strikes are very bad for us. If you look at the cost of time, rebooking, and paying compensations, we estimated at least Sh80 million cost for that one-day disruption," Kilavuka stated.

He made these remarks during the launch of the Asanti Executive Hub, a new one-stop shop located at the Kenyatta International Convention Centre (KICC) designed to meet the travel needs of government officials.

The demonstrations which occurred on September 11, 2024, left thousands of passengers stranded as aviation workers at three major airports halted operations in response to the government's plan to lease JKIA to the India-based Adani Group.

The protests, led by the Kenya Aviation Workers' Union (KAWU), disrupted operations at JKIA, Moi International Airport in Mombasa, and Eldoret International Airport, affecting both domestic and international flights.

The striking workers voiced their concerns about potential job losses if the Adani Group took control of JKIA operations. However, the government clarified that the agreement with Adani would only pertain to the aeronautical and commercial development of the airport.

In a statement to the Senate Roads, Housing, and Transportation Committee, Transport and Roads Cabinet Secretary Davis Chirchir assured that the Adani Privately Initiated Proposal (PIP) is specifically confined to JKIA and will not impact other airports and airstrips across the country.

Roads and Transport CS Davis Chirchir addresses the media after he witnessed the signing of return-to-work formular between the Kenya Airports Authority (KAA), Kenya Airways PLC, and the Kenya Aviation Workers Union (KAWU) on September 11, 2024. (Photo: X/Davis Chirchir)

"The Adani Privately Initiated Proposal is only confined to Jomo Kenyatta International Airport. It is further confined to other aeronautical and commercial development," Chirchir explained.

Public participation

The Ministry has initiated a public participation exercise to gather feedback from Kenyans and stakeholders regarding the proposed takeover by the Indian firm.

Despite the setbacks from the strike, Kenya Airways says it remains focused on expanding its share of government-related travel, which currently accounts for 40 per cent of its business.

Kilavuka emphasised the need to enhance the airline's efficiency to attract more government business and international dignitaries.

"Government travel makes up about 40 per cent of our business. We want to make it easier for the government to choose us, and that's why we are launching the Asanti Executive Hub," Kilavuka stated.

Principal Administrative Secretary Arthur Osiya encouraged KQ to improve its product offerings and reliability.

"KQ needs to avoid small weaknesses that give people excuses to go elsewhere. This is your market; work on it aggressively. You are not as aggressive as you should be towards tapping into this government business," he said.

The establishment of the Asanti Executive Hub, in partnership with KICC, aims to enhance Kenya's visibility as a prime destination for meetings, incentives, conferences, and exhibitions (MICE).

This initiative seeks to attract more international conferences, ultimately boosting the economy by showcasing Kenya's capacity to host world-class events.

KICC CEO James Mwaura highlighted the significance of collaboration between KICC, Kenya Airways, and other stakeholders to successfully bid for major international conferences.

"World-leading MICE destinations work closely with international carriers, hotels, and other stakeholders to bid for major international conferences. We recognize the need to bring our special competencies together to achieve our common objectives," he stated.