Source says KQ could use loans to pay for two 787s

What you need to know:

Two new loans provided to Kenya Airways could help it complete the financing for two Dreamliners now in storage.
Boeing said it was working closely with the airline to meet its fleet needs, but declined to discuss any specifics.

Two new loans provided to Kenya Airways could help Kenya’s national carrier complete the financing needed to take delivery of two Boeing 787-8 aircraft now in storage in Everett, Washington, a source familiar with the matter said late Wednesday.

The two Dreamliner aircraft, produced at Boeing’s North Charleston, South Carolina, assembly line earlier this year, were recently flown to the larger Everett site for “short-term storage” while the airline worked out a financing package for the planes, according to a source familiar with the situation.

Kenya’s finance minister, Henry Rotich, told a Senate committee on Wednesday that the government had provided a Sh4.2 billion (about $40 million) loan to the airline and the African Export-Import Bank had approved a Sh20 billion ($200 million) bridging loan.

Kenya Airways, which is part owned by Air France-KLM, has reported losses for the past three years due to a slump in tourism after a number of Islamist militant attacks in Kenya.

Boeing said it was working closely with the airline to meet its fleet needs, but declined to discuss any specifics about the two jets in question, the delivery schedule for any aircraft ordered by the airline, or their cost.

“We are committed to helping our customer find the best solution for both the near-term and long-term business requirements of both Kenya Airways and Boeing,” Boeing spokesman Marc Birtel said in a statement.

Birtel said the sequencing and scheduling of aircraft deliveries change for many reasons, including Boeing needs, customer needs or a combination of the two.

The source said Kenya Airways had not cancelled its order and remained a valued customer of Boeing.