On February 7, 1977, a metallic bird wrapped in Kenyan flag colours flew from Jomo Kenyatta International Airport (JKIA) to Heathrow, London. It has never stopped and now goes to 42 destinations globally.
The story of Kenya Airways or KQ as it is known by its international code is complex to tell due to the double-distinct effects it has on the country's social economy.
On one hand, it stimulates patriotic energy not just for Kenyans but the continent at large as it sways the 'Pride of Africa' tagline, while on the other hand, shareholders and taxpayers are wondering where profits went despite constant financial intervention.
To respond to this, the Star's Victor Amadala requested the firm's chief executive and managing director Allan Kilavuka to pull a chair and help paint a clear picture of the national carrier from his corner office, even as it marks 47 years in the air. He obliged.
The Pride of Africa has been in the air for 47 years now. Growing up, did you ever dream of sitting where you are?
That never occurred to me. It is my pride honour and joy to serve in such a prestigious organisation that is key to the global social economy. Sometimes, I pinch myself to be sure that it is not a mere dream.
How would you describe KQ in a single word thus far?
Iconic. KQ is instantly recognizable and easy to pinpoint with nothing but colours and the logo.
The brand has unique cultural phenomena that influence loyalty, and establish emotional attachment that resonates with the public, not just in Kenya but also across borders. Its resilience has matured into success, sustainability and longevity.
Where did KQ's ever first flight fly to? Which type of plane and how long did it take?
Following the collapse of the East African Union and the consequent folding of East African Airways, the Kenyan government established Kenya Airways on January 22, 1977.
On February 4, KQ's Boeing 707–321 which had been leased from British Midland Airways flew eight hours from Nairobi to Heathrow Airport in London.
Before and after scenario. How has the airline advanced in that market?
It has been a journey of unending progression. From its initial flight to Heathrow in 1977, its network quickly grew to five domestic and 16 international destinations within a year.
Today, as a member of the Sky Team Alliance, KQ is a leading African airline flying to 42 destinations worldwide, 35 of which are in Africa.
Its fleet comprises wide-body Boeing aircraft including its flagship B787 Dreamliner and narrow-body Embraer E190 aircraft.
The airline was recently ranked as Africa’s second most efficient airline in a global on-time performance review of airlines and airports.
The latest On-Time Performance Review report by aviation analytics company Cirium reveals that the airline attained an impressive 71.86 percent on-time arrival rate out of 41,905 completed flights in 2023.
KQ ferries millions of passengers to different destinations every year, with the figure hitting five million pre-Covid 19.
It grew passengers by 68 percent to 3.7 million in the first half of 2023 and over 65,000 tonnes, a 3.5 percent increase in cargo tonnage. We are on a mission to increase its cargo business from 10 percent of its total revenue today to at least 20 percent in five years.
The deployed capacity in Available Seat Kilometers (ASKs) increased by 75 percent, closing the year 2022 at 10.3 billion compared to the 5.9 billion reported for the same period in 2021.
As a result, passenger load factors for 2022 were only 3.9 percentage points below the load factors achieved before the pandemic in 2019.
Technology has improved a great deal since 1977.
There is no aviation without technology. This understanding has made us keep up with the global pace to boost customer experience, operational excellence, and cash conservation.
Just the other day, we inked a deal with travel intelligence and omnichannel distribution company ARC, to upgrade its booking platform.
The move seeks to enhance KQ's New Distribution Capability (NDC), a system that allows airlines to seamlessly generate and share offers with customers across various channels.
The new solution will provide an offering that has more data and gives them a chance to interact directly with the airline without an intermediary.
Before this, we unveiled a New Distribution Capabilities (NDC) system which modernizes the way air products are retailed to travel agents, corporations, and travelers.
The web-based distribution solution encourages travel agencies and travelers to sell and access more content and ancillaries like extra baggage and preferred seats and subsequently ensure they get tailored offers that match their preferences and travel history.
Through technology, we have enhanced our customer experience at different touchpoints, significantly improved the reliability and availability of our aircraft, and elevated our On-Time Performance (OTP) from a low 58 percent at the beginning of the year to 77 percent by the end of June, with a target to exceed 80 percent
What are the latest that you have infused in your fleet modernization to support efficiency and environmental safety?
Recognising the critical role of a modern and reliable fleet, Kenya Airways is actively investing in aircraft upgrades.
The recent addition of a state-of-the-art Airbus A330 is a testament to this commitment, bolstering capacity and ensuring a smoother travel experience during peak seasons.
To navigate the industry’s economic headwinds, Kenya Airways is implementing strategic cost-optimization measures.
Streamlining internal processes, optimizing fuel consumption, and forging strategic partnerships are just some of the initiatives aimed at ensuring long-term financial sustainability.
KQ has met friends along the way. Kindly speak to me about the airline's partnerships and alliances.
The aviation sector thrives on partnerships. It is the best way to ensure passengers reach as many intended destinations as possible while cutting costs. It is the epitome of efficiency.
Along the way, KQ has partnered with several airlines across the world with the latest one being with Air Europa, the third-largest Spanish carrier, to extend its reach in Europe and the United States of America.
The new agreement will allow Air Europa passengers to fly to Nairobi from Amsterdam as well as allow Kenya Airways guests to fly to Madrid, Palma de Mallorca, New York, and Miami.
In December, it extended its codeshare partnership with South African Airways (SAA) to include direct flights from South Africa to South America.
Passengers are now experiencing a seamless travel journey to Sao Paulo, Brazil, via Johannesburg on one ticket, as KQ codeshares on the recently reintroduced South Africa Airways flight to Sao Paulo (GRU).
This collaboration establishes unparalleled connectivity, offering the most direct flight option from this region, contrasting with current routes that often involve transits through the Middle East, Europe, or North America.
Through partnerships, the airline can comfortably take passengers to at least 400 destinations globally.
11. ESG is a debate that cannot be ignored in the marketplace. What is the airline doing to cut carbon emissions, support communities, and observe integrity in its operations?
Kenya Airways is committed to promoting sustainable practices by prioritising environmental, social, and governance factors.
We are responsible for mitigating our actual negative impact, preventing our potential negative impact, maximising our positive impact on the environment and society.
We maintain a long-term approach to sustainable air transportation and related businesses, which includes but are not limited to investing in energy-efficient technologies and reducing our carbon footprint.
The airline is committed to achieving net zero carbon emissions by 2050.
This commitment, known as Fly Net Zero aims to align air transport with the objectives of the Paris Agreement, which aims to limit global warming to 1.5°C.
You have recovered strongly from Covid-19. What are some of the prevailing challenges facing the industry in 2024?
Covid-19 hit hard the general transport sector, with aviation players netting a $373 billion loss. That is however behind us if the half-year result is anything to go by.
We reported an operational profit for the first time in six years in the first six months of 2023. The airline recorded a 120 percent improvement in operating profit from a loss of Sh5 billion reported in 2022 to Sh998 million in 2023.
During the period under review, the group's revenue grew to Sh75 billion, recording a 56 percent increase compared to the same period last year.
We have since dealt with operational challenges. We have now embarked on a financial solution to take the airline back to profitability by 2025.
Despite paying down more than Sh.13 billion, KQ's guaranteed debt has soared by 13.4 percent since September last year to Sh87.36 billion from Sh76.97 billion, mainly from the sharp depreciation of the Kenyan Shilling.
We are working on this to ensure we are fully recovered by 2025. Unlike in 2017 when we undertook a debt restructuring, we are currently focusing on capital injection.
The future is bright. Kindly provide insights on how KQ is going to grab those opportunities.
Widespread use of technology is beginning to influence how consumers are treated and make organisations understand their needs. We are exploring ways how to ride on Artificial Intelligence to increase efficiency and grow revenue and profits for our shareholders.