Kenya Airways CEO, Staff to Take Pay Cut as Virus Batters Sales
- Move is to reduce costs to counter impact of fewer flights
- Carrier was already reliant on government help to stay afloat
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Kenya Airways Plc. will cut salaries of executives and staff starting next month to combat a slump in revenue amid the coronavirus pandemic.
Chief Executive Officer Allan Kilavuka will take an 80% pay cut, to be reviewed on a monthly basis, while senior management including board members will have their salaries reduced by 75%, according to an internal memo seen by Bloomberg News and verified by the airline. All staff face some reduction in wages, Kilavuka said in the note to all employees dated Friday.
Kenya Airways has suspended about 65% of flights due to reduced demand for air travel “and this is changing by the hour,” the CEO said in the memo. “Our passenger numbers are also reducing exponentially and have greatly impacted our revenues.”