NAIROBI Oct 18 Shares in Kenya Airways
jumped 6.5 percent in early trading on Tuesday, after
pilots suspended a planned strike following talks between the
union, airline and government.
The pilots' union KALPA had called for an indefinite strike
to start on Tuesday to demand management changes at the
loss-making airline, which is partly owned by both the
government and Air France-KLM.
The union, airline executives and government held talks on
Monday to avert action that officials said would hurt the
carrier's slow recovery. A new chairman was named after the
talks, meeting part of the pilots' demands.
The shares rose as high as 4.90 shillings ($0.05) before
giving up some of their gains to trade at 4.70 shillings, or 2.2
Daniel Kuyoh, an analyst at Alpha Africa Asset Managers,
said retail investors were booking profits after the shares had
climbed more than 10 percent this month on expectations of a
management shake up and after the airline showed losses
Michael Joseph, a board director, was named as the new
chairman to replace Dennis Awori. However, the fate of Chief
Executive Mbuvi Ngunze, who pilots have said must go, was not
The new chairman said it was too early for him to comment
when contacted by Reuters on Tuesday.
Kenya Airways has been struggling to return to profitability
after years of losses caused by a slump in tourism and high
financing costs caused by the purchase of new planes.
($1 = 101.2200 Kenyan shillings)
(Reporting by Duncan Miriri; Editing by Edmund Blair and Mark