KQ projects Sh8.4bn savings from sale of B777s

The carrier delivered the first of two B777-200 ER aircraft earmarked for sale to Oklahoma-based Omni Air International last month. This was one of the four Boeing planes put on sale in 2014.

“Both the B777 and B787 have the range and capacity to serve long-haul markets. We have made the choice after careful assessment that the sale and sub-lease of the B777s will significantly reduce our monthly fleet and other costs while continuing to serve the markets of interest with the remaining fleet,” said Mr Ngunze.

Kenya Airways has recently been cutting capacity on long flights, withdrawing all of its long haul aircraft except for its nine B787-8s from the fleet.

It currently uses its B787 fleet on flights from Nairobi to Amsterdam, Bangkok, Dubai, Guangzhou, Hanoi, Hong Kong, Johannesburg, Kinshasa, London Heathrow, Mumbai and Paris.

READ: KQ sells its prime London airport landing slot to Oman Air for Sh7.5 billion

KQ has also been said to have entered a wet lease agreement with Oman Air for two Boeing 787-8s. Wet leasing deals in aviation refer to the hiring out of an aircraft complete with crew, maintenance and insurance to another airline in return for pay-by-hours operated.

“The Embraer is a versatile aircraft that allows us to fly short- to medium-haul missions more regularly with a smaller capacity, driving efficiency and thus serving the most profitable part of our network,” said Mr Ngunze in the commentary.

The decision by the airline to offload its London Heathrow early morning landing slot sparked debate about the airline’s turnaround strategy.

KQ sold off its slot in partnership with Air France, in a 50:50 share of the approximately Sh7.5 billion proceeds.