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Kenya Airways CEO Sebastian Mikosz has admitted that nonstop flights to the United States have failed to meet the expected results.
Although the direct flights between Nairobi and New York were part of the airline's recovery strategy, Mikosz confesses that the route is not lucrative.
“I do not consider it to be a lucrative route. There is nothing lucrative about flying to New York,” Mikosz says.
Mikosz, however, says the route is important for the national carrier's position in the market.
“The route is necessary but difficult. It is performing in the range that we expected. It is feeding our African network. It positions us differently,” he notes.
The nonstop flights were launched in October last year and offer the fastest connection from East Africa to New York City.
Mikosz's revelation comes after the airline announced a full year loss of Sh7.55 billion for the financial year ending December 31st, 2018.
KQ attributes the loss to volatile fuel prices, with its fuel expenditure rising by 73.6 percent from Sh19 billion in the nine-month period in 2017 to Sh33 billion in the 12 months ending December 2018.
“We have a dedicated team looking at multiple solutions to cushion the airline against the shock of a potential further rise in fuel cost and forex volatility in 2019. We are very optimistic that the turnaround strategies we have employed will deliver results," said Mikosz.
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Time to label Kenya Airways a failed business and dissolve it. How can one run a business at a loss year after year? Swallow the 'pride' of Africa and get rid of a failure. There is no cure just like corruption of the failed state called Kenya.
The money is being Pocketed coupled with the CEOs' for NOTHING hefty Salaries
Although Toronto (YYZ) has huge airport landing fees, it also has a diverse African culture, more than NY. Introduce. Two direct flights, one from YYZ to NBO and another to NBO via West Africa and watch the turnaround, but what do I know? Just my $0.02
Secondly, what is KQ's fuel hedging strategy?
Lets look at how the CEO is managing the route. KQ has one flight to New York, with a fully staffed office, with Managers and custodians to cater for that one flight. Its partner, has over 100 flights to the US, without a single office. Go figure.
Idle employees; paid for Doing NOTHING.👎
Had the looters of public funds not done what they did to KQ, the airline would still be what the old slogan said; "The pride of Africa". But now, KQ has a long way to go to recover all those billions embezzled by the embezzlers...
Kenya does not need expatriates to loose Ksh. 8B. The jubilee administration does that over and over again but the boy in statehouse who has never seen a non black face that he could not hire has to do that. Pombe tu!
1. KQ was looted flat
2. Mismanagement and wanting huge profits without putting in as much
3. Who cares as long as they line their pockets
KQ used to be profitable, what happened.....where....and when?
So he admitted aka he knew all along this was not a good investment for KQ ?Again when you equate mzungu with high IQ and ignore qualified mwananchi that is what you get. Now that he has admitted - can he re-route this like Tony M said above.
Africa is the CRADLE of CIVILIZATION; an Achievement that was is Still and undermined by Colonionists (who as you Alluded to have Low IQ compared to our African IQ.
KQ will be ok. Tony M yes YYZ would be great for KQ.
Kenyans aren't loyal:-
1. Very few people want to fly KQ or even be associated with it. They would rather promote other airline companies even at an extra cost.
2. We complain of corruption and corrupt leaders day in, day out yet we kill each other and hate on each other just to elect those poisoned with corruption.
3. We forget and move on from issues that affect the economy too quickly, like this one itapita tu, maisha iendelee kama kawaida.
Frankly speaking, we get what we deserve
Well if KQ was top notch with best services, best prices and GREAT customer services and a route that I prefer , of course but now NOT! That is my reason as a Kenyan.
Most Kenyans in United States will agree with me how we were excited when this route was introduced.we could not wait to fly direct . little did we knew that the route was not ment for ordinary diaspora like me and you. Check this.all major international airlines has connectios with local air line. Our dear KQ has no connection. For me to fly from Kansas city, I have to book a separate tickets to new york.checks the bags again.why should I do all this while I can book KLM or others that are cheaper and will connect me with my local flights ????.
And it's because they are SELFISH.
They imported this dude all the way from Poland to manage KQ so that it can dive into 8 billions loss. Out of 50 millions Kenyans there is nobody who could be able to dive KQ to a less than 8B loss.
When the fat Polish pig Sebastian Mikosz was announced as the new CEO of Kenya Airways, people at LOT Polish airlines were all smiling as they knew the so-called turnaround expert was a liar. Not that the fat pig did not turn around LOT in 2014 like he claimed, he brought such a chaos to LOT and made this airline suffered huge losses of US$70M in 2015 when the fuel price was lower than 2014. I hope the board of Kenya Airways will use their brain and think if they should keep the most stupid and incompetent CEO in this world or send the fat Polish pig back to Warsaw in a cargo plane. Sebastian Mikosz is too fat to be even roasted and served as BBQ pork on buffet table.
I said here before, KQ did not seem interested in making money, when launching the direct flights. They were more interested in prestige, than in business. The North Eastern part of the US, including New York, is already adequately covered by Ethiopian. They began direct flights long ago, and they are cheaper than KQ, even with a connecting flight to Kenya. Yet the Southern US, which has more African Diaspora than the Northeast, relies on KLM, for trips to East Africa. For KQ, direct flights to Dallas, or Atlanta, would have tapped this already existing Customer base. But Oh No! They prefer the Prestige of flying directly to America's biggest, and oldest City... Even if they will be flying empty Aeroplans!
Maybe Kenya needs an Ethiopian REVOLUTION like (1974-1991).😬
Did Kq even get advice from Kenyans in America on the best route to fly.
I think KQs failure to deliver has been done deliberately so that it can be declared bunkrupt! They knew the route to be non lucrative but still went ahead flying there! Guess whose company will be the first to show an interest in buying KQ when it folds it's wings?
I said it before that the So-taunted "None-STOP" flight was a Flight to Nowhere; a Passing cloud; no Rain. Not with the CORRUPTION Kenya is Drunk with.😞