IS IT TIME UP FOR NAIKUNI?

Is Titus Naikuni a man under siege? This is the question arising after seeing the Kenya Airways managing director lose touch with the Kenya Aviation and Allied Workers Union and recently the Kenya Airline Pilots Association. He further seems to have lost the confidence of shareholders after surprisingly having lost the race for Africa’s first dreamline to competitor Ethiopian Airlines as well as dismal performance in profitability. Titus Naikuni’s star started rising with his employment into the civil service as part of the World Bank sponsored Kenyan technocrats often referred to as the dream team who were professionals mostly from the private sector expected to inject new blood into the public service. Naikuni left the ministry of transport after serving as permanent secretary for 19 months back to the private sector where he served an extra 2 years at Magadi Soda before he took over at the helm of Kenya airways in 2003. This was after he was awarded the manager of the year in 2002. Since his entry into KQ in 2003 the company’s performance was exemplary with the airline’s profit margin at a record 9.7%. In 2005 the airline embarked on a fleet expansion programme. Since his entry into Kenya Airways, fleet has grown to 34 which include the acquisition of 5 embraer 170s and 4 embrear 190s from Brazil. However, Kenya Airways is now playing second fiddle to Ethiopian Airlines after losing out to its largest competitor on the acquisition of the Boeing 787 dreamliner with KQ still operating the boeing 777-200 ERs. KQ which had ordered 9 dreamliners with an option of 4 more has to wait much longer for its first delivery at a time Ethiopian Airlines will have acquired 5 jets and enjoying up to 20% in fuel cost saves even as KQ’s balance sheet becomes worrying. In the last financial results KQ’s profit dipped by 53% to Kshs.1.7 billion with fuel cost and staff cost blamed. Naikuni has further fallen out with the Kenya Allied and Aviation Workers Union and recently the Kenya Airline Pilots Association for the retrenchment of 578 workers with KALPA calling for his firing. In a paid advertisement, KALPA blamed KQs current woes to years of misadvised decision making adding that time had come for the chickens to come to roost. KALPA has also argued that retrenchment of staff due to increased costs was not clear-headed as operating cost had risen much faster. The management’s decision to hire foreign pilots has also not been received well with members of the public. Lastly, the government is now the largest shareholder at KQ following the recent Rights Issue with the state controlling 29.8 percent stake against KLM’s 26.3%. This is also expected to be reflected in the boardroom management. A Paris-based intelligence magazine, Indian Ocean Newsletter says the move by the Kenyan government to seek greater control was occasioned by the recent retrenchment at the airline, which had the blessing of KLM. For now it will be worth watching how Naikuni plays out his cards with so much pressure on his back.