Three new non-executive directors among them former KCB CEO Martin Oduor-Otieno have been appointed to the board of Kenya Airways.
KQ lenders have nominated Carol Musyoka and former KCB CEO Martin Oduor-Otieno while the government has in addition to Transport PS and his National Treasury counterpart, appointed Investment secretary to the KQ board.
This emerged as the airline narrowed its half year net loss by 20.5 percent to 3.8 billion shillings fuelled by improved operations and lower fuel costs.
Kenyan government and 11 banks agreed to convert more than 400 million dollars of Kenya Airways debt into equity, increasing the government stake in the airline to 48.9%.
The move has seen the airline reduce its debt by 36 per cent. Musyoka and Oduor-Otieno will be joined in the board by Investment Secretary Esther Koimett.
Jos Veenstra will represent the interests of KLM on the Kenya Airways Board. This emerged as the airline announced narrower half year net loss that reduced 20.5 percent to 3.8 billion shillings.
This was helped by a growth in passenger numbers by 3.3 percent to 2.3 million and the cabin factor growing 5.4 percent to 76.9 percent.
This is despite revenue dipping by 230 million shillings to 54.5 billion shillings. The airline says lack of a level playing field is hurting its recovery efforts noting that eight key competitors comprising, Turkish Airlines, Etihad, Emirates, Qatar, Ethiopian Airlines, Egypt Air, South African Airways and RwandAir are fully subsidized by their respective governments.
The financials indicate that shareholders incurred a loss per share of two shillings per share. Going forward, KQ plans to focus cost reduction, introduction on new revenue streams and network optimization to help the airline recover and navigate its way to the profit territory.