Kenya Airways set to acquire more planes in expansion plan

Kenya Airways will on Saturday receive the first of 10 Embraers as it puts its expansion plans into top gear.

The Embraer E190 will be deployed on domestic and regional flights as the airline moves to double its fleet over the next five years and grow its route network. Kenya airways expects to receive an E190 every month until May 2013.

“This is the first aircraf to come in our expansion plan,” said Titus Naikuni, the airline’s chief executive in an interview at the airport earlier this week.
KQ has been raising billions of shillings to expand its fleet and route network. In June it raised Sh14.5 billion in a rights issue. The money is intended to financing pre-delivery payments for its fleet.

Loan deal

The national carrier is also expected to sign a Sh7 billion loan deal with the World Bank’s private lending arm, the International Finance Corporation (IFC). IFC is Kenya Airways third largest shareholder with a 9.56 per cent stake acquired during the airline’s rights issue.

The government is the largest shareholder with a 29.8 per cent stake, while KLM/Air France owns 26.73 per cent.

Kenya Airways plans to increase its fleet to over 60 aircraft in the next ten years with the delivery of 24 Embraers - both E170 and E190, nine Boeing 787-800 Dreamliners of which the first is expected in the third quarter of 2013 and Boeing 777-800.

The airline is looking to be in 91 destinations in five years and 115 in 10 years.

The new aeroplane, which is fully owned by Kenya Airways, will be the airline’s 11th jet in the Embraer fleet. The airline already has five other E190s acquired on debt and five leased E170s.

The delivery comes after KQ officially received a route licence for its low-cost carrier, Jambo Jet, which is expected to be launched by the end of this year.

The low cost carrier will mainly serve the domestic and regional market.