Kenya Airways case heard in Court of Appeals

In September 2012, Kenya’s national airline was court ordered to re-instate over 400 staff who had been laid off at the time. Yesterday that case appeared before the Court of Appeals.

The Court of Appeals in a ruling made public yesterday in Nairobi, set aside the hotly-contested order by Industrial Court Justice James Rika. The Aviation and Allied Workers’ Union had taken Kenya Airways to court at the time after many staff had in fact accepted retirement packages and benefits offered to voluntarily leave the airline. The judge was clearly swayed by emotional arguments including support for the union from a section of the political spectrum in Kenya, and in the climate of a highly-charged, pre-election period, then sided with the union. His ruling was overturned yesterday by a three judge bench of the Appeals Court which found that he had erred in law when delivering his judgment in favor of the plaintiffs at the time.

Kenya Airways that year posted a record loss, followed by another loss-making year which ended in March 2014, but with much improved outlook for the future, thought to return to profit territory, aided by having put this case to rest.

Savings in overheads and through outsourcing of services, combined with anticipated fuel savings as the ageing fleet of B767-300ERs is now being replaced by state-of-the art B787-8 Dreamliners are seen as the main driver to come out of two years of losses and begin to write black figures again at the bottom line.