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Economy

Kenya Airways to sell four planes to raise cash, CS James Macharia says

Passengers disembark from a Kenya Airways flight. PHOTO | FILE
Passengers disembark from a Kenya Airways flight. PHOTO | FILE  NATION MEDIA GROUP

Kenya Airways is planning to sell four of its older planes to raise cash after posting record losses.

Acting Transport Cabinet Secretary James Macharia told a House committee that the sale is part of a recovery plan by the airline.

Mr Macharia made the announcement when he met the Transport, Public Works and Housing Committee of the National Assembly on Tuesday.

KQ posted a Sh25.7 billion loss that it blamed on competition from Middle East carriers and high operating costs.

The airline also blamed travel advisories that led to a slump in the tourism industry, as well as runway closures for renovation, for eating into the company's 2014/2015 full-year earnings.

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The airline has, however, been accused of poor management decisions, operational inefficiencies and failure to counter competition.

Preliminary evidence gathered by a Senate Select Committee looking into the airline’s operations revealed that strategic errors led to the near-collapse of Kenya’s flag carrier.

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