Tycoons’ 101 planes put on auction over KAA fees

Fly540 staff board a plane. FILE PHOTO | NMG

What you need to know:

  • The KAA, the agency in charge of operations, safety and security at all Kenyan airports, has given the aircraft’s owners 30 days to claim them or have them sold through public auction.
  • The planes include those used by business tycoons and politicians for short flights and commercial aircraft owned by top firms such as 748 Air Services, Silverstone, Jetlink and Fly540.
  • Aircraft belonging to State agencies like the Kenya Police, Moi University and Somalia Airforce also risk being sold when the auctioneer’s hammer falls after September 14.

About 101 aircraft abandoned at various airports across the country are on the verge of being auctioned to clear rising parking charges after the Kenya Airports Authority (KAA) declared them a safety risk.

The KAA, the agency in charge of operations, safety and security at all Kenyan airports, has given the aircraft’s owners 30 days to claim them or have them sold through public auction.

The planes include those used by business tycoons and politicians for short flights and commercial aircraft owned by top firms such as 748 Air Services, Silverstone, Jetlink and Fly540.

Aircraft belonging to State agencies like the Kenya Police, Moi University and Somalia Airforce also risk being sold when the auctioneer’s hammer falls after September 14.

The auction notice comes a month after Kenya allowed air travel to resume following the phased reopening of the country from a Covid-19 lockdown.

“The said aircraft will be sold by public auction and the proceeds of sale shall be defrayed against September 14. The auction notice comes a month after Kenya allowed air travel to resume following the phased reopening of the country from a Covid-19 lockdown.

“The said aircraft will be sold by public auction and the proceeds of sale shall be defrayed against any incurred charges and the balance if any shall remain at the owners’ credit but should there be a shortfall, the owner shall be liable thereof,” said KAA acting managing director Alex Gitari in the latest Kenya Gazette notice.

“The aircraft must be removed within 30 days from the date of publication of this notice and upon payment of all outstanding charges and any incidental costs including the cost of publication of this notice.”

The KAA reckons that the firms and individuals owe it millions of shillings from accumulated parking and landing fees arrears, setting the stage for Kenya’s biggest auction of aircraft.

Large aircraft pay $25 (Sh2,707) daily to park at airports like Jomo Kenyatta International Airport and $585 (Sh63,355) and $702 (Sh76,000) to land during the day and night respectively.

Small planes are charged $15 (Sh1,625) daily parking fees and $223 (Sh24,150) and $268 (Sh29,000) for landing during the day and night respectively.

Kenya’s business magnates, politicians and new millionaires are fast taking to the skies as the preferred mode of transport – expanding the market for leasing and private ownership of planes.

Registration of new aircraft owned by wealthy Kenyans and private aviation firms nearly doubled last year, an indication of growing affluence that has been driving up demand for air travel.

The Kenya Civil Aviation Authority (KCAA) registered 87 new aircraft last year, up from 48 in 2018, pushing the number of planes in the country to 1,548, excluding those owned by the National Police Service and the Kenya Defence Forces.

The abandoned planes are parked at JKIA, Moi International Airport in Mombasa, Lokichoggio Airport and Wilson Airport.

JKIA has 17, including a Sh2 billion Bombardier plane belonging to Jetlink, two Soviet-built passenger planes owned by Somali Airforce and two old Boeing plane registered under Jubba Airways.

Wilson Airport hosts more than half or 64 of the targeted planes, with five linked to the Kenya Police Air wing, Fly540, Skylink, Silverstone and Moi University.

Others belong to individuals and investors operating small chartered short flights targeting the rich.

Wilson Airport in Nairobi handles about 90 per cent of domestic flights that mainly comprise chartered and commercial flights to holiday destinations such as Masai Mara Game Reserve, Mombasa, Amboseli National Park, Lamu, Kilimanjaro, Diani, Lokichogio and Nanyuki. It is currently ranked among the busiest airports in terms of aircraft movement in East and Central Africa.

748 Air Services, a commercial carrier, has abandoned eight aircraft at Lokichoggio Airport, including smaller models such as the HS748 and medium-sized turboprop planes.

Wilson Airport insiders say some of the aircraft have been abandoned by their owners for more than 10 years and have accumulated charges to the tune of millions of shillings.

While some were said to be in serviceable condition, others are only worth their scrap metal after years of inactivity and theft of parts.

Aviation rules require that planes be parked at gazetted points like airports.

Apart from urban-based business leaders, politicians and wealthy deal-makers, Kenyan skies are also dominated by large-scale farmers and ranchers based in Nanyuki, Kitale, Laikipia and Narok.

Aero Club of East Africa – a lobby group of private aircraft owners – attributed the growth in the number of registered planes to Nairobi’s rising status as the region’s business hub and a growing number of wealthy individuals with the means to own and maintain an aircraft.

Besides convenience, wealthy individuals have also acquired aircraft to satisfy their ambitions for reliable and personalised travel.

Air operators say that the biggest headache in owning an aircraft lies in operational and maintenance costs, including high jet fuel prices, airport landing fees, parking fees, insurance and spare parts.

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