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After several months in the doghouse, management at Kenya Airways (KQ) have bounced back from their worst ever financial performance by announcing an urgent restructuring plan. The ailing flag-carrier now aims to restore profitability under an 18-month turnaround strategy developed by consultants McKinsey & Company.
Many analysts are reserving judgement on the plan until further details are disclosed, but chief executive Mbuvi Ngunze promises that a slew of measures will help reverse last year's devastating 25.7 billion shilling ($254 million) loss.
Ostensibly turning his back on Project Mawingu, the ten-year growth strategy launched in 2011, Ngunze is pursuing an urgent overhaul of KQ's finances in a bid to raise up to $346 million. Some $200 million of that will be generated from unspecified cost-cutting measures – job losses are widely expected – with the remainder coming from the sale of four Boeing 777-200ERs and other assets...