KQ troubles cut aircraft imports by Sh75.3 billion

Kenya cut aircraft and plane spare parts imports by Sh75.3 billion last, reflecting the turbulence in the air transport business.

Official data shows that aircraft and parts imports dropped to Sh7.7 billion last year, down from Sh83 billion in 2015 last year and Sh129.5 billion in 2014.

The troubled national carrier Kenya Airways (KQ) #ticker:KQ and government are the main drivers of aircraft import bill given their big-ticket purchases compared to individuals and corporate bodies.

Kenyan military and police have in recent years also been keen to upgrade their fleet in the fight against emerging threats like terrorism.

But Kenya Airways financial woes has largely to blame for the shrinking aircraft and parts orders.

The national carrier is battling a financial storm, and has been reducing its fleet, selling land and cutting jobs to recover from losses caused by a slump in tourism and the cost of renewing its fleet.

The carrier’s pre-tax losses narrowed to Sh4.73 billion in the six months to September, from Sh11.86 billion in a similar period a year ago. 

KQ in November 2915 added to its fleet two B787-8 planes worth Sh22.4 billion each, marking the last of a batch of nine orders from American manufacturer Boeing put in 2006.

The carrier has halted aircraft purchases and is instead leasing and selling some of its planes in cost-cutting and cash raising plan.

This brings to a halt the fleet expansion plan that saw the carrier increase its fleet size by double digits in the years to 2012, and with it falls imports of planes and spare parts.

While the number of registered aircraft in Kenya grew by a third in the past five years to 2014 to 1,268, KQ has accounted for larger share of the planes and parts import bills.