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General AviationKenya Airways Turns to London-based firm for Turn around Strategy

Kenya Airways Turns to London-based firm for Turn around Strategy

The Aviator Africa Kenya Airways

Kenya Airways has reportedly turned to London-based firm Steer Group to draw up a restructuring plan to steer it through the short, medium and long-term sustainability strategies in the face of considerable losses.

This turnaround strategy has mainly been caused by the pandemic that has disrupted business making it hard for business continuity and organizational transformation. Also, the national carrier has in recent years has been met with considerable breezes.

Steer Group took up the assignment in May and will be retained for three months according to Allan Kilavuka the KQ CEO.

Business Daily reports that Kilavuka said, “Kenya Airways has come up with short, medium, and long-term strategies to help in realizing two main objectives. The first is to survive the current depressed market, and the second is to implement strategies that will make the business more sustainable in the long term. Steer Group is to validate these strategies and recommend any additional supportive, or different strategies to help achieve the goals”.

Aside from the Pandemic, The carrier has been met with considerable breezes in the recent years hence affecting structural economic conditions. As a result of such, Kenya Airways posted losses amounting to $335 million on the year ended December 2020.

Following such high finance costs, the Carrier turned to Steer Group for a restructuring plan that would help it return to profitability. This was also a requirement by the International Monetary Fund (IMF) in order to grant the Kenyan government $2.36 billion loan.

Kenya Airways had previously in 2016 turned to McKinsey & Company to draw up a restructuring plan in the face of considerable losses. At the time, McKinsey developed a 24 point plan, focusing on debt restructuring and the sale of underutilized assets which was viewed as key for the airline’s long term sustainability.

According to information by company, Steer Group is expected to review and propose options with the least cost which are most effective in steering Kenya Airways back to sound financial footing, with its expertise in aviation policy and regulation, government strategy review, regulatory review advisory studies, efficiency reviews, impact assessment, and evaluation support to changing legislation.

 

Joan Kifuko
Joan Kifuko is a communications enthusiast that is currently working as a writer at The Aviator magazine where you find your aviation news in one place. She is a journalist that has previously worked as a sales associate, guest relations officer, brand ambassador hence, the love for new adventures and roles. Joan graduated with a Bachelors degree of science in journalism.
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