Abstract:

The Kenya Airways Group consisted of Kenya's national carrier Kenya Airways (KQ), Kenya Airfreight Handling Limited (KAHL), Africa Cargo Handling Limited (ACHL), Flamingo Airlines Limited, Galileo Kenya, and Kencargo Airlines International Limited. After privatisation in 1996, the group had been consistently growing. It had acquired more subsidiaries, more aircraft, was carrying more passengers, and transporting more cargo. In February 2003, Mr Titus Naikuni was hired as the Managing Director and Chief Executive Officer of the group. Profit levels had dropped by 60.2% from the previous year. Something was causing the decline in profits. Mr Naikuni had attended his first weekly business meeting as a guest before the handover from the previous managing director. During this meeting he noticed that the senior management team did not realise that the situation at Kenya Airways was 'urgent'. Mr Naikuni felt that he needed to identify and deal with the cause of the decline in profits. He wondered whether he would begin his appointment by articulating his vision for the organisation by developing new objectives and goals, or whether he would begin by addressing the profit situation.

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