akatanyukuile
JF-Expert Member
- Sep 13, 2019
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Mm ninahis ununuzi wa ndege Atcl umekaa kisiasa zaid tu. Na siajabu watoto wa wakubwa wameisha somea uruban sasa wanawatafutia ajira tyu
Kenya Airways to earn billions in sale of 7 aircraft
By BONFACE OTIENO
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SUMMARY
- The listed airline had a fleet of 41 airplanes at the end of last year
- Restructuring its fleet, including selling aircraft and sub-leasing to other airlines has been one of KQ’s focus areas in recent years
- KQ is working on a process that will lead to its nationalisation, eyeing future success. Lawmakers voted to re-nationalise it in July.
COMPANIES
Kenya Airways to earn billions in sale of 7 aircraft
FRIDAY, SEPTEMBER 20, 2019 10:50Kenya Airways chairman Michael Joseph. FILE PHOTO | NMG
Kenya Airways is selling seven planes and an engine in a multi-billion shilling deal that marks the carrier’s latest efforts to reduce its fleet in a bid to shore up its financial position.
The loss-making carrier has hired UK-based Air Partner to guide it in the planned sale of the six Boeing 787-8 Dreamliner planes, one Boeing B777-300 and a spare GE engine at a time when a shortage of pilots is forcing the airline to cancel flights and trim routes.
Kenya Airways (popularly known as KQ) will lease back the aircraft after selling them, according to contract documents between the airline and Air Partner seen by the Business Daily, signalling that it does not intend to see the plane sale hurt its routes.
“Kenya Airways is conducting a series of sale and leaseback transactions covering 6 x B787-8, B777-300 and GEnx spare engine,” said the contract document.
“KQ has requested Air Partner to conduct a desktop review addressing a series of questions around these sale and leaseback transactions.”
The Nairobi bourse listed airline had a fleet of 41 airplanes at the end of last year, comprising a mix of Boeing planes for long-haul and Bombardier and Embraer planes on its short and medium haul flights. Its rival Ethiopian Airlines operates more than 100 planes.
A new 787-8 Dreamliner goes for $206.8 million (Sh21.49 billion) according to a price guide by global aviation website Aircraft Compare.
Ageing fleet
KQ in 2011 signed a deal for the purchase of nine 787-8 Dreamliner planes with Boeing to replace its ageing fleet and expand routes and flight frequencies.
It received the first Dreamliner plane, which is famed for its fuel efficiency, in 2014.
A used General Electric (GE) aircraft engine is expected to fetch hundreds of millions of shillings, with the price of most new ones topping the Sh1 billion mark.
Kenya Airways declined to respond to three e-mails from the Business Daily over the plane sale.
Restructuring its fleet, including selling aircraft and sub-leasing to other airlines has been one of KQ’s focus areas in recent years as it seeks to return to profitability.
Its fleet size has been dropping since 2015 in a period that has seen Kenya Airways struggle to return to profitability after making steep losses in 2014, causing some of its engineers and pilots to seek greener pastures.
It had 52 airplanes in 2015 and the fleet dropped to 39 in 2017 before rising to 41 last year.
The airline has been forced to cancel dozens of flights due to a shortfall in the required pilot numbers.
Flight cancellations
In the first two weeks of last month, the airline suffered 91 flight cancellations, of which 68 flights or 74 percent were due to pilot shortage, its internal memo showed.
Kenya Airways said it will be forced to cancel more flights in the weeks ahead due to the shortages as it faces opposition from pilots union to hire 20 fliers on contract.
The national carrier had earlier in the year announced a plan to double its fleet over the next five years.
KQ is working on a process that will lead to its nationalisation, eyeing future success. Lawmakers voted to re-nationalise it in July.
Kenya Airways to earn billions in sale of 7 aircraft
The airline will lease back the aircraft after selling them.www.businessdailyafrica.com
KQ to earn billions, says the article, and you say they are transferring leases. Explain. (20Marks)The thing is the previous deal they had is eating on their revenues big time n they couldn't honor the Afreximbank loan! The truth is they r transferring the lease!
Making a fool of yourself. You own an asset when you fully pay for it not when its registered in your name.KQ with 3 planes, sells 7 planes.
That means we remain with -4 planes. 😂 😂 😂
Your bs keeps falling apart here everyday.
Mwende mwangaliwe vichwa. Geza Ulole na Mkikuyu- Akili timamu
[emoji38][emoji38][emoji38] Ndio nashangaa, walituambia kwamba KQ wana ndege tatu tu, sasa tena KQ wanauza ndege saba. How?????KQ with 3 planes, sells 7 planes.
That means we remain with -4 planes. Your bs keeps falling apart here everyday.
Mwende mwangaliwe vichwa. Geza Ulole na Mkikuyu- Akili timamu
Making a fool of yourself. You own an asset when you fully pay for it not when its registered in your name.
KQ has only fully paid for 3 planes.
Shirika la ndege nchini Kenya Airways wanauza ndege yao Boing 777,
Hii ndege inauwezo wa kutoka nchini Kenya hadi Washington Marekani non stop ikiwa na abiria 12, huku ikiwa na free seat 239.
Kenya airways imekuwa ikipata hasara kwa miaka zaidi ya 40 mfulilizo.View attachment 1434970View attachment 1434971View attachment 1434971
Abiria 12 huku free seat 239 nairoberry to washington 😀Shirika la ndege nchini Kenya Airways wanauza ndege yao Boing 777,
Hii ndege inauwezo wa kutoka nchini Kenya hadi Washington Marekani non stop ikiwa na abiria 12, huku ikiwa na free seat 239.
Kenya airways imekuwa ikipata hasara kwa miaka zaidi ya 40 mfulilizo.View attachment 1434970View attachment 1434971View attachment 1434971
I was going to ask the same question. That's where desperation has taken them. I wonder how you can sell something that you don't ownSo kq haina ndege tatu tena?[emoji1787][emoji1787][emoji1787][emoji1787]
Hata mi nilikua nataka ku uliza hili swali....I was going to ask the same question. That's where desperation has taken them. I wonder how you can sell something that you don't own
GoK guaranteed KQ's loan to Afriexim bank, If KQ fail to pay for the loans they took to acquire the dreamliners, no one will come to take the dreamliners , instead, the lenders will go to GoK and ask for their money, they wont come to take the planes because the planes have already depreciated in value. So technically speaking KQ has full liability for the dreamliners, that means they can use the dreamliners as security if they wanted to take another loans because the dreamliners are counted as part of their assets, they can even sell the planes to another buyer like in this case, the lenders dont care as long as KQ still pays the loans.Making a fool of yourself. You own an asset when you fully pay for it not when its registered in your name.
KQ has only fully paid for 3 planes.
Kenya Airways (popularly known as KQ) will lease back the aircraft after selling them, according to contract documents between the airline and Air Partner seen by the Business Daily, signalling that it does not intend to see the plane sale hurt its routes.
“Kenya Airways is conducting a series of sale and leaseback transactions covering 6 x B787-8, B777-300 and GEnx spare engine,” said the contract document.
Can you fly turbo prop with 250 passengers to newyork direct?Instead of selling and leasing back, its better if KQ sell dreamliners andreplace them with turboprops such as Bombadier and ATRs which are cost efficient forvregionar routes..
Customer doesnt care much on shortest arrival time as they care about a ticket flight.. This will make KQ more competitive and afloat!