Kenya Airways (A)

Author: Munene, Catherine
Source: United States International University
Year: 2006
Company Name: Kenya Airways
Number of pages: 25

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Abstract:

In February 2003, Mr. Titus Naikuni was hired as Managing Director and CEO of the Kenya Airways Group. After attending the first few weekly business meetings as the Group's Managing Director and CEO, he realized he needed to develop a new direction for the company. Since privatization in 1996, the Kenya Airways Group had been growing consistently. It had more subsidiaries, acquired more aircraft, was carrying more passengers, and transporting more cargo. Since 1998, the group had been growing and revenues had been increasing. However, profits were declining. Mr. Naikuni had attended his first Weekly Business Meeting as a guest before the hand over from the previous Managing Director. During this meeting, Mr. Naikuni noticed that the senior Management team did not realize that the situation at Kenya Airways was "urgent". During the meeting, there was no discussion whatsoever on the profit levels, yet the Group's net profit for 2002 had dropped by 60.2% from the previous financial year. Something was causing the decline in profits. After the handover, Mr. Naikuni felt that he needed to identify and deal with the cause of the decline. He thought about how he would begin his new appointment. Should he begin by articulating his vision for the organisation or should he ask the management team to develop a new vision?