Companies

KQ leases two more planes to Turkish, Oman Air

ngunze

Kenya Airways Group CEO Mbuvi Ngunze. PHOTO | FILE

Kenya Airways has disposed off two more aircraft through subleasing agreements to Turkish Airlines and Oman Air in the latest move aimed at turning around the fortunes of the troubled airline.

The B777-300ER is the second aircraft to be handed over to Turkey’s national carrier with one more expected to be deregistered and transferred next week.

KQ entered into an agreement with Turkish air lines which would see it lease three of its new aircrafts for varied periods of between four and five years.

READ: KQ plane disposals down to two after Turkish lease

Handing over of the B787-8 to Oman Air completes the sub-leasing transaction with the KQ after delivery of the first 787 in April.

The two planes will remain in their custody for the next three years.

Kenya Airways resorted to rationalise its excess capacity through sub-leases and outright sales after falling into some financial turbulence in order to remain operational.

CEO Mbuvi Ngunze said noted that though it was sad to see their brand new aircrafts going to other airlines, the move was in the national carrier’s best interest.

“It is important to understand the context in which we are taking these decisions. We need to close our gap in profitability and rapidly reduce our cost and debt structure,” he said.