Kenya Airways is the flag carrier airline of Kenya, based in Nairobi. It started operations on 4 February 1977, and operates scheduled services throughout Africa and to Europe and the Indian subcontinent, with its main base at Jomo Kenyatta International Airport (JKIA), Nairobi. The airline was established after the break-up of the first East African Community and the consequent demise of East African Airways and was wholly owned by the Kenyan government until April 1996. In 1996, shares were floated to the public, and the airline started trading on the Nairobi Stock Exchange. In October 2004, the company cross-listed its shares on the Dar-es-Salaam Stock Exchange. In April 2004, the company re-introduced Kenya Airways Cargo as a brand and in July 2004, the company's domestic subsidiary Flamingo Airlines was re-absorbed. In March 2006, Kenya Airways won the 'African Airline of the Year' Award for 2005, for the fifth time in seven years. On September 4, 2007, SkyTeam, the second-largest airline alliance in the world, welcomed Kenya Airways as one of the first official SkyTeam Associate Airlines. In 2008 it won the Company of the Year award for strategic planning and emergency preparedness, as well as Manager of the Year to Director Paul Kasimu. Travel News & Lifestyle Magazine voted Kenya Airways as African Airline of Choice, Best Regional Airline, Flying Blue voted the best Frequent Flier program and Msafiri - Best in-flight magazine. Kenya Airways Fleet: Boeing 737-300 (4) - Short haul regional routes; Boeing 737-700 (4) - Short haul regional routes; Boeing 737-800 (5) - Short haul regional routes; Boeing 767-300ER (5) - Long haul international and intercontinental routes; Boeing 777-200ER (4) -Long haul intercontinental routes; Boeing 787-8 (9 orders) - Long haul international and intercontinental routes; Embraer 170LR (3) - Lease. In 2005 Kenya Airways achieved IOSA (IATA Operational Safety Audit) becoming the 1st carrier in sub-Saharan to get this rigorous safety certification. It has code sharing agreements with: KLM; Air France; Precision Air (private Tanzanian airline); Northwest Airlines (United States); Kenya Airways and Rwanda Air code share on the Kigali-Nairobi-Kigali route; and Kenya Airways and Korean Air code share on the Nairobi - Seoul route. Services and Products The group's principal activity is providing international, regional and domestic carriage of passengers and cargo by air. It also provides ground handling services to other airlines and the handling of import and export cargo. The group operates domestic flights and flies to 42 destinations in Africa, Middle East, Asia and Europe. At 31 March 2008, the group had 24 aircraft in operation, either owned or on operating leases. Number of Employees 4,267 employees Market Share It currently has a 54% share of scheduled capacity at Nairobi airport and is sub-Saharan Africa’s third- biggest airline. Business Objective "To consistently be a Safe & Profitable Airline that guarantees World Class standards in service delivery, product quality and operational performance; to be the Airline of choice in Africa; and to develop JKIA as a premier hub in Africa." Business Model Given a highly competitive environment, Kenya Airways sees its information gathering capacity, analysis and interpretation of the global environment as key to facilitate faster and correct business decision-making. This way, Kenya Airways hopes to enhance ability for rapid response to opportunities, threats and challenges in the market place. It further continues to focus on profitable expansion of its network through a combination of direct access and alliances with other carriers. Sustainable improvement in yield will be pursued through a combination of a new revenue management system and better discipline. Management also places emphasis on greater productivity, costs restraints and reduction in wastage; the implementation of various systems for improved operational management, maintenance, planning and control and the development of its people to better equip them to face these challenges. Kenya Airways has embarked on an extensive project to upgrade and refresh its brand. This project includes all customer touch points with the objective of bringing a fresh contemporary feel to the entire traveller’s experience. Kenya Airways awarded the project to Johannesburg-based branding specialists, BLACK Brand, Strategy & Design. The project commissioned in March 2008 should be complete by the end of the financial year 2009/10. Question With reference to the case study, discuss how Kenya Airways can effectively evaluate strategy.
Kenya Airways is the flag carrier airline of Kenya, based in Nairobi. It started operations on 4 February 1977, and operates
scheduled services throughout Africa and to Europe and the Indian subcontinent, with its main base at Jomo Kenyatta
International Airport (JKIA), Nairobi. The airline was established after the break-up of the first East African Community and
the consequent demise of East African Airways and was wholly owned by the Kenyan government until April 1996.
In 1996, shares were floated to the public, and the airline started trading on the Nairobi Stock Exchange. In October 2004,
the company cross-listed its shares on the Dar-es-Salaam Stock Exchange. In April 2004, the company re-introduced
Kenya Airways Cargo as a brand and in July 2004, the company's domestic subsidiary Flamingo Airlines was re-absorbed.
In March 2006, Kenya Airways won the 'African Airline of the Year' Award for 2005, for the fifth time in seven years. On
September 4, 2007, SkyTeam, the second-largest airline alliance in the world, welcomed Kenya Airways as one of the first
official SkyTeam Associate Airlines. In 2008 it won the Company of the Year award for strategic planning and emergency
preparedness, as well as Manager of the Year to Director Paul Kasimu. Travel News & Lifestyle Magazine voted Kenya
Airways as African Airline of Choice, Best Regional Airline, Flying Blue voted the best Frequent Flier program and Msafiri -
Best in-flight magazine.
Kenya Airways Fleet: Boeing 737-300 (4) - Short haul regional routes; Boeing 737-700 (4) - Short haul regional routes;
Boeing 737-800 (5) - Short haul regional routes; Boeing 767-300ER (5) - Long haul international and intercontinental routes;
Boeing 777-200ER (4) -Long haul intercontinental routes; Boeing 787-8 (9 orders) - Long haul international and
intercontinental routes; Embraer 170LR (3) - Lease. In 2005 Kenya Airways achieved IOSA (IATA Operational Safety Audit)
becoming the 1st carrier in sub-Saharan to get this rigorous safety certification. It has code sharing agreements with: KLM;
Air France; Precision Air (private Tanzanian airline); Northwest Airlines (United States); Kenya Airways and Rwanda Air code
share on the Kigali-Nairobi-Kigali route; and Kenya Airways and Korean Air code share on the Nairobi - Seoul route.
Services and Products
The group's principal activity is providing international, regional and domestic carriage of passengers and cargo by air. It
also provides ground handling services to other airlines and the handling of import and export cargo. The group operates
domestic flights and flies to 42 destinations in Africa, Middle East, Asia and Europe. At 31 March 2008, the group had 24
aircraft in operation, either owned or on operating leases.
Number of Employees
4,267 employees
Market Share
It currently has a 54% share of scheduled capacity at Nairobi airport and is sub-Saharan Africa’s third- biggest airline.
Business Objective
"To consistently be a Safe & Profitable Airline that guarantees World Class standards in service delivery, product quality and
operational performance; to be the Airline of choice in Africa; and to develop JKIA as a premier hub in Africa."
Business Model
Given a highly competitive environment, Kenya Airways sees its information gathering capacity, analysis and interpretation
of the global environment as key to facilitate faster and correct business decision-making. This way, Kenya Airways hopes
to enhance ability for rapid response to opportunities, threats and challenges in the market place. It further continues to
focus on profitable expansion of its network through a combination of direct access and alliances with other carriers.
Sustainable improvement in yield will be pursued through a combination of a new revenue management system and better
discipline. Management also places emphasis on greater productivity, costs restraints and reduction in wastage; the
implementation of various systems for improved operational management, maintenance, planning and control and the
development of its people to better equip them to face these challenges.
Kenya Airways has embarked on an extensive project to upgrade and refresh its brand. This project includes all customer
touch points with the objective of bringing a fresh contemporary feel to the entire traveller’s experience. Kenya Airways
awarded the project to Johannesburg-based branding specialists, BLACK Brand, Strategy & Design. The project
commissioned in March 2008 should be complete by the end of the financial year 2009/10.
Question
With reference to the case study, discuss how Kenya Airways can effectively evaluate strategy.
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