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KQ
Kenya Airways, commonly referred to by its code name, KQ, is the flag carrier airline of Kenya and one of the leading air travel brands in the country.
Established over 40 years ago, KQ has grown into a continental player in the aviation industry. KQ was incorporated after the dissolution of East African Airways in 1977. Initially, the airline started with a modest fleet of two aircraft, serving a few regional destinations. Over the years, KQ expanded its route network and modernised its fleet, enabling it to connect Kenya to major continental and international aviation hubs. Today, the airline serves over 50 destinations worldwide, ferrying both passengers and cargo.
The aviation industry, already grappling with the aftermath of the COVID-19 pandemic, has been adversely affected by the global soaring fuel costs. In 2022, fuel expenses alone surged by 160 percent year-on-year, significantly driving up KQ’s direct operating costs by a staggering 94 percent. Despite this adversity, KQ’s total revenue surged by an impressive 66 percent to KES 117 billion during the same period.
Moreover, the airline successfully expanded its operations, as evidenced by a substantial 75 percent increase in capacity deployed, measured in Available Seat Kilometres (ASKs), reaching 10,303 million compared to 5,900 million in 2021.
Although overheads rose by 30 percent, primarily due to foreign currency losses caused by the weakening of the Kenyan shilling against other international currencies, KQ managed to improve its operating loss by 19 percent in 2022, reporting a loss of KES 5.6 billion.
If not for the unfavourable global financial and operating conditions, the airline would have achieved a break-even profit before tax, and reported a net profit of KES 13 billion at the operational level. This positive performance speaks volumes about the effectiveness of KQ’s management team, led by Managing Director (MD) and Chief Executive Officer (CEO), Allan Kilavuka.
In the face of the aforementioned challenges, KQ is showing an impressive operational resilience. The airline is also steadily advancing towards attaining greater levels of customer experience, through a strong commitment to customer obsession.
By way of example, over the past year, KQ has expanded its network with two new routes: Nairobi (Kenya) to Dakar (Senegal) with a stop over in Accra (Ghana), and Mombasa (Kenya) to Dubai (UAE).
The Nairobi (via Accra) to Dakar route links KQ customers to two vibrant West African cities for business, trade, and cultural exploration. This new route enhances efficiency and promotes economic growth and partnerships. It also supports the Single African Air Transport Market (SAATM), and the African Continental Free Trade Area (AfCFTA), essential pillars for Africa’s growth. Similarly, with Dubai’s status as a global business hub and a popular tourist destination, the Mombasa to Dubai route caters to the needs of businessmen seeking new markets in the UAE, traders aiming to establish connections, and travellers desiring unforgettable experiences.
In June 2023, KQ introduced a captivating loyalty program called Asante Rewards, as a gesture of gratitude towards its loyal customers, enhancing the airline’s steadfast commitment to customer obsession. This program enables customers to enhance their flying experience by earning redeemable points from flights operated by KQ or its partner airlines. These points can be exchanged for various benefits, including reward ticket flights, seat upgrades, extra baggage allowance, priority services, seat selections, and numerous other rewards. By advancing through the Silver, Ruby, Gold, and Platinum tiers, customers can enjoy exclusive advantages and privileges, ensuring a more gratifying travel experience.
Speaking at the launch, Kilavuka elaborated on the program, mentioning that Asante Rewards is a unique African product created from years of research, customer feedback and best practices from across the globe. “Kenya Airways is proud to introduce Africa’s most awaited loyalty program. For 46 years, millions of customers have chosen and trusted us. It is now time for us as Kenya Airways to say ‘Asante’ to our customers in a very special way,” he noted.
Furthermore, in an endeavour to enhance customer experience, KQ organised an immersive staff engagement and training program at The KQ Pride Centre on June 12th to 23rd, 2023. The iCare Immersion workshop aimed to empower employees to deliver an exceptional level of customer service. Under the theme “My Customer, My Pride,” this initiative aligned with the KQ’s goal of becoming the preferred airline for customers. The sessions emphasised the crucial role of customer obsession in driving the success of this endeavour.
During the program, staff members participated in engaging activities designed to cultivate winning behaviours towards customers, fostering empathy, personalization, and a sense of ownership among them.
With a formidable dedication to sustainability, KQ is deeply involved in various collaborations that garner a positive reputation among the airline’s customer base, as well as contribute to Africa’s sustainable development in the aviation industry. As a case in point, Fahari Aviation, a subsidiary of KQ, has partnered with Kipkebe, a subsidiary of Sasini PLC, to provide sustainable precision agricultural services. Using advanced drone technology, Fahari Aviation offers chemical spraying and fertiliser application on tea farms, saving costs by 50 percent, and significantly improving time efficiency.
The airline’s impressive performance and refocused devotion to customer service has been recognised through numerous awards and accolades, with the most recent being at the prestigious Skytrax World Airline Awards, where KQ won the Best Airline Staff in Africa 2023.
KQ’s significant improvement in operating performance bodes well for its turnaround strategy. Despite the hardships faced, the airline has demonstrated its ability to adapt, overcome challenges, and deliver better results as it soars once again into the skies. By refocusing its priorities on customer retention through customer obsession, KQ is positioning itself to meet and exceed customer expectations, and undeniably reclaim its brand position as ‘The Pride of Africa’.
