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KEN-VISIT KENYA - 2006 FACTS
FORMED AND STARTED OPERATIONS IN 1977. FLAG CARRIER. SCHEDULED, DOMESTIC, REGIONAL & INTERNATIONAL, PASSENGER & CARGO, JET AIRPLANE SERVICES.
JOMO KENYATTA INTERNATIONAL AIRPORT
PO BOX 19002-00501
EMBAKASI, NAIROBI, KENYA
KENYA (REPUBLIC OF KENYA) WAS ESTABLISHED IN 1963, IT COVERS AN AREA OF 582,535 SQ KM, ITS POPULATION IS 30 MILLION, ITS CAPITAL CITY IS NAIROBI, AND ITS OFFICIAL LANGUAGES ARE SWAHILI AND ENGLISH.
APRIL 1995: TO ADDIS ABABA, BUJUMBURA, CAIRO, DAR-ES-SALAAM, ENTEBBE, HARARE, JOHANNESBURG, KIGALI, KHARTOUM, KISUMU, LILONGWE, LUSAKA, MALINDI, SEYCHELLES, ZANZIBAR, BOMBAY, KARACHI, COPENHAGEN, FRANKFURT, LONDON, PARIS, ROME, STOCKHOLM, ZURICH, DUBAI AND JEDDAH.
2,350 EMPLOYEES (INCLUDING 109 FLIGHT CREW (FC), 450 MAINTENANCE TECHNICIANS (MT)).
PRIVATIZATION UNDERWAY IN 1995, WITH GOVERNMENT HOLDINGS REDUCED TO 23%.
SOLD 707-351B (19634) TO AFRICAN AIRLINES EXPRESS (AFX).
DECEMBER 1995: (KLM) TAKES 26% STAKE, EMPLOYEES 3%.
JANUARY 1996: 1995 = +$25 MILLION (NET PROFIT): .8 MILLION PASSENGERS (PAX) (.32 MILLION DOMESTIC).
JUNE 1996: MR OKERO CHAIRMAN.
JULY 1996: FISCAL YEAR (FY) 1995 = +$24.5 MILLION.
BRIAN DAVIES, MANAGING DIRECTOR & (CEO).
2/2 ORDERS (FEBRUARY 1997) 737-300'S.
NOVEMBER 1996: 1 A310 AMSTERDAM TO NAIROBI.
FEBRUARY 1997: +1 ORDER (MAY 1998) 737-300 (3RD).
MARCH 1997: 1 737-300 DELIVERY (CFM56-3C1).
APRIL 1997: 20 YEARS ANNIVERSARY!
MAY 1997: 2ND 737-300 DELIVERY.
JUNE 1997: RETURNED 1 737-200 (JT8D-17) TO (GUI).
OCTOBER 1997: 1 DHC-7-102 (PT6A-50), (AGES) LEASED.
JANUARY 1998: TO DOUALA/LAGOS. PLANS TO ADD CAIRO, KHARTOUM, & KIGALI IN NEAR FUTURE.
2 737-248'S (21714, 21715) EX-EAST WEST AIRLINES (BOM), HEAVY MAINTENANCE AT AIR ASIA, TAIWAN. EXERCISES 4TH 737-366 (MARCH 1999) (3RD IN MAY 1998). FINDS BUYER FOR 3 F 50'S IN SPAIN. WILL DO "D" MAINTENANCE CHECK, THEN FERRY TO SPAIN BY THE END OF FEBRUARY 1998.
FEBRUARY 1998: NEW CARGO CONTRACT WITH SKYTRAIN LTD FOR KENYAN FARM PRODUCE = 29% OF KENYA AIRWAYS (KEN) PROJECTED CARGO BUSINESS, & +115% BUSINESS FROM SKYTRAIN, OVER LAST YEAR.
APRIL 1998: 2,350 EMPLOYEES (INCLUDING 109 FLIGHT CREW (FC) & 450 MAINTENANCE TECHNICIANS (MT)).
MAY 1998: 3RD 737-300 (5Y-KQC) DELIVERY .
JULY 1998: CODE SHARE WITH ALITALIA (ALI) TO ROME. CODE SHARE WITH NORTHWEST AIRLINES (NWA).
(NWA) AND PARTNER (KLM) OWN 26% (KEN).
LAST OF 3 F 50'S DELIVERED TO AIR NOSTRUM, SPAIN. NOW KENYA AIRWAYS (KEN) HAS AN ALL-JET FLEET.
OCTOBER 1998: TO LAMU, A RESORT DESTINATION ON A SMALL ISLAND OFF NE COAST OF KENYA IN PARTNERSHIP WITH EAGLE AVIATION (ATR42, 45 PAX). TO KINSHASA (737-300). SERVES LONDON HEATHROW AND 19 DESTINATIONS IN AFRICA + SEYCHELLES.
FISCAL YEAR (FY) 1997 = +$24 MILLION (+$18.22 MILLION) (NET PROFIT).
FEBRUARY 1999: 1 A310-304 (485), CONDOR (CDF) 3 YEAR LEASED STARTING MARCH 1999.
MARCH 1999: 737-300 (CFM56-3C1) DELIVERY.
APRIL 1999: 2,775 EMPLOYEES. SITA: NBODDKQ.
RICHARD NYAGA MANAGING DIRECTOR REPLACES BRIAN DAVIES WHOSE CONTRACT EXPIRES JULY 1999.
FISCAL YEAR (FY) 1998 = 1.05 MILLION PASSENGERS (PAX) (+22%).
JUNE 1999: AGREEMENT WITH MARTINAIR (MTH) TO OPERATE JOINT LEASED AN-12F TURBOPROP FREIGHT FLIGHTS IN REGIONAL AFRICA.
SEPTEMBER 1999: FISCAL YEAR (FY) 1998 = +$22 MILLION (-8%): +55% (RPK) TRAFFIC IN AFRICAN REGION, +27% (RPK) DOMESTIC, +15% (RPK) MIDDLE EAST, +10% (RPK) TO EUROPE.
JANUARY 2000: ACCDT: (KEN) A310-300 (CF6-80C2A2) (426, 5Y-BEN) CRASHED INTO THE ATLANTIC OCEAN AFTER TAKEOFF FROM ABIDJAN, IVORY COAST = 10 (FC)-(CA)/159 PASSENGER FATALITIES OF 10/169.
4 ORDERS (DECEMBER 2000) 737-700'S & 3 ORDERS (DECEMBER 2000) 767-300ER'S FOR $750 MILLION. 1 A310-324 (542, EC-HFB) AIR PLUS (APZ) WET-LEASED.
FEBRUARY 2000: 1 767-300ER (KLM) WET-LEASED TO REPLACE A310 THAT CRASHED LAST MONTH.
MARCH 2000: PLANS TO ADD SERVICE TO JEDDAH, MILAN AND MUSCAT.
IN 5/00, WILL LAUNCH A NO-FRILLS, DOMESTIC SUBSIDIARY CALLED "KENYA FLAMINGO" WITH 4 SAAB 340 LEASED.
2 ORDERS (12/02) 737-700'S, AND 3 ORDERS (5/04) 767-400ER'S, 259 PAX. PLANS TO RETIRE 2 737-200'S & 4 A310-300'S BY END OF 2002.
APRIL 2000: 2,780 EMPLOYEES (INCLUDING 146 FLIGHT CREW (FC), 365 CABIN ATTENDANTS (CA) & 400 MAINTENANCE TECHNICIANS (MT)).
2 737-300'S AWAS (AWW) LEASED.
MAY 2000: NEW SERVICES TO JEDDAH, MILAN (MALPENSA) & MUSCAT.
1 A310-200 (CF6-80C2) (600) EX-EMIRATES (EAD), (AIFS) AIRBUS 15 MONTH LEASED. 2 SAAB 340B'S FOR WHOLLY OWNED SUBSIDIARY KENYA FLAMINGO, 35 PAX LEATHER SEATS WITH SERVICE TO MALINDO, LAMU, KISMU AND ELDORET.
JUNE 2000: SUBSIDIARY, KENYA FLAMINGO AIRWAYS TO BE BASED AT JOMO KENYATTA INTERNATIONAL AIRPORT, NAIROBI & TAKE OVER DOMESTIC OPERATIONS FROM PRIVATE CARRIER, EAGLE AVIATION.
FY 1999 = +194%. ALL EMPLOYEES TO BE GIVEN +7% BONUS.
1 767-33AER (591-27909, /95 23 04) EX-LAUDA (LAL), ANSETT (AWW) LEASED. 1 SAAB 340B (163) FOR KENYA FLAMINGO OPERATIONS.
JULY 2000: FY 1999 = +$39.91 MILLION (+$13.25M): 853 MILLION RPK (+21%); 24.07 MILLION FTK (+28%); 435,000 PAX (+20%); 2,780 EMPLOYEES.
1 767-33AER (591-27909, VH-NOA), (ANS) (NORDSTRESS) WET-LEASED.
SEPTEMBER 2000: ALL STAFF RECEIVE +8% PAY RAISE.
1 DC-9-32 MILLION AIR (MIL) WET-LEASED TO REPLACE 737-300 DAMAGED IN HARD LANDING, REQUIRING STRUCTURAL REPAIR BY BOEING (AOG) TEAM.
OCTOBER 2000: 2 SAAB 340B (163, 5Y-FLA; 171) FOR KENYA FLAMINGO OPERATIONS.
NOVEMBER 2000: JOINT CARGO SALES & SERVICE COMPANY WITH KENYA AIRWAYS (KEN) (60%), (KLM), AND MARTINAIR (MTH) FOR AFRICA USING NAIROBI HUB, WITH LEASED 15-40 TON FREIGHTERS, LATER TO BECOME A NEW CARGO AIRLINE.
JANUARY 2001: EXPECTS TO GET RIGHTS TO FLY TO MOZAMBIQUE.
FEBRUARY 2001: CODE SHARE WITH AIR MALAWI (AML) TO LILONGWE.
MARCH 2001: CODE SHARE WITH AIR TANZANIA (TNZ) TO DAR ES SALAAM.
APRIL 2001: 2,749 EMPLOYEES (INCLUDING 146 (FC), 365 (CA), & 400 (MT).
RICHARD NYAGA MANAGING DIRECTOR RESIGNED AND REPLACED BY BRIAN PRESBURY.
MAY 2001: 1 767-36NER DELIVERY (837-30853, 5Y-KQZ) (GEF) LEASED.
JUNE 2001: 1 767-36NER (841-30841, 5Y-KQY) (GEF) LEASED.
JULY 2001: IN 2001-09 TO ACCRA, GHANA (737-700).
1 737-76N (30133), (GEF) 7 YEAR LEASED. 1 767-36NER (30854), (GEF) 7 YEAR LEASED.
AUGUST 2001: 2,780 EMPLOYEES. SITA: NBODDKQ.
2ND 737-76N (WITH WINGLETS) DELIVERY.
SEPTEMBER 2001: TO ACCRA (2X-WEEKLY).
NOVEMBER 2001: CODE SHARE WITH AIR TANZANIA (TNZ) TO DAR ES SALAAM (12X-WEEKLY).
DECEMBER 2001: 2 767-3Y0ER'S (GECAS) (GEF) 3 YEAR LEASED, EX-IBERIA AIRLINES (IBE) (26206, 5Y-KQV; 26207, 5Y-KQW).
JANUARY 2002: 1 737-33A (1739-24096, /89 29 24 5Y-RAB), EX-AIR TOULOUSE (TOU), ANSETT (AWW) LEASED. A310-304 (519) RETURNED TO (ILF) LEASED TO AIR-INDIA (AIN).
MARCH 2002: 25 YEARS ANNIVERSARY!
$500 Million, 3 ORDERS (2004-02) 777-200'S.
April 2002: 3,000 employees (including 146 (FC); 365 (CA); & 400 (MT).
(http://www.kenya-airways.com). SITA: HDQPZKQ.
Owners/Shareholders: Kenya Institutions & General Public (34%); (KLM) Royal Dutch Airlines (26%); Government (23%); Foreign Investors (14%); Employees (3%).
Subsidiaries Shares: Kenya Flamingo Airways (100%); KenCargo Airlines International (60%).
Alliances: Air Botswana; Air Malawi (AML); Air Tanzania (TNZ); Eagle Aviation; (KLM); (KLM) UK (AUK); & Northwest Airlines (NWA).
Main Base: Nairobi (Jomo Kenyatta International (NBO).
Hubs: London Heathrow (LHR); & Amsterdam (Schiphol) (AMS).
June 2002: 1st 2 737-700 deliveries in Africa with blended winglets.
July 2002: 2001 = +$13.5 million (-36%) (net profit): 3.7 Billlion (RPK) passenger traffic (+14.2%); 68.9% LF load factor; 1.41 Million passengers (PAX) (-2%); 92.73 Million (FTK) freight traffic (+20.4%); 3,000 employees (+9.1%).
October 2002: Launches a "Premier World" class on all international and regional services, that replaces first class (F) on regional routes and business class (C) on international flights.
November 2002: $4.3 Million contract with (SITA) to provide 46 new servers at Kenya Airways (KEN)'s airport and town office locations to upgrade (KEN)'s Information Technology (IT) infrastructure.
December 2002: Acquires 49% of Precision Air, Tanzania, a propeller airplane operator for $2 Million to obtain landing rights and routes into and within Tanzania, including 33% from the Tanzania Venture Capital Fund and 16% from founder Michael Shirima, who retains 51%. Alphonse Kioko has been appointed as Managing Director, replacing Michael Shirima.
Receives 120 minutes Extended Twin-engine Operations (ETOPS) approval for 767 airplanes.
January 2003: In 2003-06, Nairobi to Bangkok to Hong Kong (3x-weekly).
3rd 737-7U8 (32371, 5Y-KQG) Swara Aircraft Financing leased, delivery. Airplane had been detained in the USA by the Exim Bank, (KEN)'s financier through Barclays Bank, and the (FAA) and delivered nearly 1 month behind schedule over concerns that Kenya has not yet re-established a competent aviation regulatory authority.
February 2003: Names Titus Naikuni a former government secretary, as (CEO) to replace Brian Presbury, whose contract expires in 4/03.
March 2003: 737-229C (20915) bought from European Aviation (EUL). 1 +1 order (2003-04) 767-300ER (PW4000), (GECAS) (GEF) leased (to be used for new routes to Hong Kong and Bangkok).
April 2003: 2,407 employees.
As flag carrier of Kenya, Kenya Airways (KEN) operates a scheduled network throughout Africa and to Europe and the Indian subcontinent.
Parent organization/shareholders: Kenya Institutional (government 22%; others 16.22%) (38.22%); individual Kenyans (31.23%); foreign institutional (KLM) (26%); others 4.46%) (30.46%); institutional foreign (0.09%).
Owns: KenCargo Airlines International (60%); & Kenya Flamingo Airlines (100%).
May 2003: 737-7U8 (1327-32372, 5Y-KQH) delivery.
July 2003: 2,780 employees. SITA: NBODDKQ.
In 2003-09, Nairobi toO Bangkok (767-300ER, 3x-weekly non-stops) with continuing service to Hong Kong.
2002 = +$6.4 Million (+$13.5 Million): 3.94 Billion (RPK) (+6.3%); 68.3% LF 1.59 Million (PAX) (+12.9%); 118.38 Million (FTK) (+27.7%).
August 2003: Subsidiary Flamingo Airways to fly to Uganda and Tanzania within next 3 months.
Code share with East African Safari Airways (EFZ), Entebbe to Nairobi.
In 2003-09, Nairobi to Bangkok to Hong Kong (3x-weekly).
September 2003: Next month, Nairobi to Cape Town (737-700, 2x-weekly).
Phased out its Flamingo Airlines brand in favor of a franchise agreement. Airplanes will have Kenya Airways (KEN) livery and crews will now wear (KEN) uniforms. Fleet of 3 Saab 340's will be expanded and flights added to Mombasa, Entebbe, Zanzibar & other destinations.
February 2004: Will lay off -260 employees to reduce costs.
March 2004: Will migrate fleet operations to Lufthansa Systems' Lido Route Manual - navigation charts, electronically generated from a database that contains worldwide geographic and aeronautical information. The 5-year deal also provides Kenya Airways (KEN) with use of Flight Information Viewer Internet solution, enabling dispatchers and pilots (FC) to access the Internet from any PC or laptop during flight preparations on the ground and to download and print up-to-date charts.
April 2004: 2,407 employees.
737-3U8 (28746, 5Y-KQA) wet-leased to Precision Air (PRT) for Nairobi to Johannesburg (6x-weekly).
May 2004: 2003 Fiscal Year (FY) = +KYS 1.3 Billion/+$16.3 Million (+325%).
Applied for a license to operate all-cargo services.
767-3P6ER (24484, 5Y-KQR), Pembroke (PEB) leased. 1st 777-2U8ER (33681, 5Y-KQU) delivery for Nairobi to Amsterdam. In 2004-06, to London.
June 2004: In 2004-08, Nairobi to Addis Ababa to Djibouti (737, 2x-weekly).
September 2004: Signs agreement to join the Component Services Program offered jointly by Boeing & Air France Industries (AFA), which provides "fast access to critical components and repairs" for its 777's.
December 2004: 2,780 employees.
April 2005: 2,015 employees.
777-2U8ER (33682, 5Y-KQT) delivery.
May 2005: 767-38EER (24797, 5Y-KQP), Boeing Aircraft Capital (TBC) leased to replace 767-3YOER (26206) that was returned to (GEF) and leased to Air Canada (ACN).
June 2005: The SkyTeam (STM) Alliance creates its new associate program and selected Air Europa (ARE), Copa Airlines (COP), Kenya Airways (KEN) & Tarom (TRM) with joining process to be completed in 2006. Each has been assigned to a sponsor from the alliance: (ARE) - Air France (AFA); (COP) - Continental Airlines (CAL); (KEN) - (KLM); & (TRM) - Alitalia (ALI).
Code share with Air Malawi (AML), Blantyre to Nairobi (6x-weekly).
767-3YOER (26207, 5Y-KQW) returned to (GEF), leased to Air Canada (ACN). 3rd 777-2U8ER (33683, 5Y-KQS) delivery.
September 2005: Kenya Airways (KEN) will operate a weekly service from London Heathrow Terminal 4 to Mombasa via Nairobi using a 777 beginning 2005-12.
Singapore Aircraft Leasing Enterprise (SIL) will lease 3 new 737-800s to Kenya Airways (KEN) for 8 years from the 4th quarter of 2006. The airplanes will be used to replace older 737-200's on its routes between Mombasa, & Nairobi and other points within E Africa.
October 2005: Launched service to Guangzhou by extending 3 of its Nairobi to Dubai flights to Guangzhou and competing with Ethiopian Airlines (ETH). Kenya Airways (KEN) increases the frequency of flights from Nairobi to Dakar from 2 to 3 with the addition of a Sunday flight operating via Bamako (Mali). (KEN) already operates a Bamako to Dakar flight on Tuesdays and Fridays.
November 2005: Kenya Airways (KEN) in July will launch a Nairobi Jomo Kenyatta Airport to Paris (CDG) service in a 2-class layout on July 1st. (KEN) will operate 3x-weekly with a 767-300 departing Nairobi on Tuesdays/Thursdays/Saturdays and Paris on Wednesdays/Fridays/Sundays.
(KEN) ordered its 4th 777-200ER and placed an option for a 5th, Boeing announced. (KEN) also will lease its 6th 767-300ER. The firm 777 will deliver in 2007 and be powered by (Trent 800)s.
December 2005: Kenya Airways (KEN) inaugurated direct service from London Heathrow to Mombasa. The weekly 777-200 operates on Fridays via Nairobi (NBO). (KEN) will inaugurate nonstop service from Mombasa to London Heathrow. That flight operates on Saturdays with a 777-200 as well. (KEN) in July will launch a 767-300ER 3x-weekly Nairobi Jomo Kenyatta Airport toO Paris (CDG). (KEN) will inaugurate direct service from Nairobi to Asmara (Eritrea) on May 3rd. (KEN) will operate 2x-weekly, on Wednesdays/Saturdays via Djibouti with a 737-300. (KEN) will inaugurate nonstop service from Nairobi to Paris (CDG) on July 1st. (KEN) will operate 3x-weekly using a 767-300 departing (NBO) on Tuesdays/Thursdays/Saturdays and departing (CDG) Wednesdays/Fridays/Sundays.
Kenya Airways (KEN) flies >2 million passengers annually and has the largest network into Africa. (KEN) is going through an aggressive expansion plan and this year's additional destinations include Bamako, Dakar, Maputo, Istanbul & Guangzhou (China). This compliments 17x-weekly flights to London and Amsterdam, and regular schedules to select destinations in Asia, including Dubai, Mumbai, Hong Kong and Bangkok.
February 2006: Kenya Airways (KEN) unveiled its new website, which features a state-of-the-art online booking engine developed by E-Travel. (KEN) is offering a -10% discount on tickets purchased on the site. It said it carried >2 million passengers in 2005 and recorded turnover in excess of KES42 billion/$583.5 million.
(KEN) plans to launch service to Paris and Freetown "in the near future."
March 2006: Kenya Airways (KEN) continued its strong association with Boeing by becoming the 28th airline to sign up for the 787 with an order for 6 787-800s. The 787s will replace (KEN)'s 6 767s, with 2 to be delivered in 2010 and 4 in 2011. (KEN) carries >2 million passengers annually and has the largest network into Africa. It operates a 21-airplane fleet comprising mostly 737s, 767s and 777s. Boeing said it has 385 orders and commitments for the 787 Dreamliner.
"The 787 Dreamliner fits perfectly into our fleet strategy and offers Kenya Airways (KEN) the opportunity to reach out across the globe," (CEO) Titus Naikuni said. (KEN) is "going through an aggressive expansion program," according to Boeing recently adding flights to Bamako, Dakar, Maputo, Istanbul and Guangzhou while planning to launch services to Paris, Asmara and Sierra Leone.
May 2006: Kenya Airways (KEN) received permission from the Ugandan authorities to add a 4th daily flight on the Nairobi to Entebbe route and (KEN) intends to commence that frequency on June 15th. Currently (KEN) operates 3x-daily flights with a 4th flight on Fridays, Saturdays & Sundays. Kenya (KEN) operates 737-200/-300s on the route. (KEN) will increase the frequency on its Nairobi to Amsterdam route from 7x- to 9x-weekly on July 1st. In addition to the daily service departing Nairobi in the morning and operated with a mix of 767s and 777s, (KEN) will add 2x-weekly flights departing Nairobi in the evening on Fridays & Saturdays and operated with a 767-300. On the return route, in addition to the daily evening Amsterdam departure, Kenya will add 2x-weekly flights departing Schiphol airport on Saturdays & Sundays.
June 2006: Kenya Airways (KEN) posted a net profit of +KES4.83 billion/+$66.5 million for the fiscal year ended March 31, a +24.4% increase over the +KES3.88 billion earned in Fiscal Year (FY) 2005. Revenues rose +25.1% to KES52.8 billion as (KEN) carried 2.4 million passengers during the year, an increase of +17%. It plans to take delivery of 3 new 737-800s this year and a 4th 777 in early 2007.
July 2006: Kenya Airways (KEN) added a 7th 767-300 to its fleet to meet rapidly growing demand on its network from West, East and Central Africa to Dubai, Guangzhou, Thailand and Mumbai. The new airplane is on lease. (Ken) is looking to expand its Nairobi hub this year and aims to operate daily flights to most of its African destinations. Recently, it started daily service to Douala and increased frequencies to Entebbe and Dar es Salaam. It also will start flights to Brazzaville and Cotonou by September.
(KEN) said its fleet modernization program is on course. (KEN) will also remove 3 737-200s from its fleet by the end of the year. These airplanes are to be replaced with 737-800s. Here is an overview of (KEN)'s fleet:
737-200 = 3 in the fleet until end of 2006.
737-300 = 4 in the fleet.
737-700 = 4 in the fleet.
737-800 = 3 arriving from September to December 2006.
767-300 = 7 in the fleet.
777-200 = 3 in the fleet, 4th arriving January 2007.
787-800 = 6 on order for 2010 to 2012.
August 2006: Kenya Airways (KEN) and Turkish Airlines (THY) signed a code share agreement that will see (THY) place its code on (KEN)'s 2x-weekly Nairobi to Istanbul service.
September 2006: Kenya Airways (KEN) will launch 3x-weekly Nairobi to Paris Charles de Gaulle service from October 26 aboard either 767-300ERs or 777-200s. It is (KEN)'s 4th European destination after Amsterdam, London Heathrow and Istanbul.
October 2006: Kenya Airways (KEN) will launch 2x-weekly flights from Nairobi to Cotonou via Brazzaville from October 26. (KEN) will not launch scheduled service into Congo Brazzaville as was planned. Unresolved issues in negotiations on air traffic rights forced the last-minute cancellation.
1st 737-8AL (35069, 5Y-KYA) delivery - see photo.
November 2006: Kenya Airways (KEN) is considering introducing a dedicated freighter airplane. (KEN) needs more cargo capacity on regional routes that are served with the 737 which offer limited cargo space. They include Entebbe, Dar Es salaam, Burundi, Kigali, Zambia and Malawi.
December 2006: +3 orders 787-8 Dreamliners. It now has orders for 9 firm airplanes +4 options, up from the 6 firm and 6 options placed in March. It will take 1st delivery in October 2010 with the balance of the order arriving through late 2012.
Kenya Airways (KEN) said it will lease 3 E170s from (GE) Commercial Aviation Services (GEF) to help expand its domestic and regional routes. The 1st 2 will be delivered in May and June 2007, and the 3rd in June 2008, replacing Saab 340B turboprops. By the end of this month (KEN) also will have taken delivery of 3 737-800s it is leasing from Singapore Aircraft Leasing Enterprise (SALE) (SIL).
2 737-8ALs (35070, 5Y-KYB; 35071, 5Y-KYC) (SALE) (SIL) leased.
January 2007: Kenya Airways (KEN) will lease 3 Embraer E170s from (GECAS) (GEF) for delivery in mid-2007.
February 2007: The SkyTeam (STM) alliance announced that it signed agreements with Air Europa (ARE), Copa Airlines (COP), and Kenya Airways (KEN) "indicating the carriers are on track for official Associate Airline status." Signing ceremonies were held in the capital of each airline's home country. The trio will add 25 destinations to SkyTeam (STM) alliance's network.
777-2U8ER (36124, 5Y-KYZ) delivery.
March 2007: Starting March 28th, Nairobi to Accra to Monrovia using 737-700s.
April 2007: Amadeus said (KLM), Kenya Airways (KEN), and Martinair (MTH) successfully switched to Altea Reservation. >1.4 million (PNR0s migrated to Amadeus and 22 applications were adapted as part of the cut over. "By now using the same reservation system as Air France (AFA), this migration represents an important step in realizing common Information Technology (IT) platforms and applications between Air France (AFA) and (KLM)," (KLM) Executive VP & Chief Information Officer (CIO) Boet Kreiken said.
May 2007: Kenya Airways (KEN) reported a net profit of +KES4.10 billion/+$61 million for its fiscal year ended March 31, down -15.1% from net income of +KES4.83 billion in the prior year, blaming "increased competition, higher fuel prices and the adverse impact of a weaker USA dollar" for the drop. Revenue lifted +11.3% to KES58.79 billion, but expenses climbed +13.8% to KES51.15 billion, producing an operating profit of +KES7.64 billion, a -2.8% decrease from +KES7.86 billion last year. Fuel expenses rose +20.2% to KES15.89 billion.
(KEN) is set to take delivery of 2 E170s within the next 2 months, with a 3rd slated for delivery next year. It noted that it will replace the 737-800 lost in this month's crash in Cameroon, that killed all 114 on board "as soon as a suitable airplane is available." Meanwhile, 2 Saab airplanes that were planned to be sold later this year will be retained to replace the 737-800's capacity.
(KEN) carried a record 2.6 million passengers for the 12 months, up +9%, on a +13.7% lift in capacity. Load factor was down -0.6 point to 73.6% LF. It noted that passenger yield was flat in USA cents but declined -3.8% when translated into KES.
ACCDT: 737-8AL (2079-35069, /06 5Y-KYA), crashed into a mangrove swamp in Cameroon, about 20 km SE of Douala = all 9/105 fatalities.
The wreckage of a Kenya Airways (KEN) 737-8AL that was missing for 36 hours was found in a mangrove swamp approximately 20 km SE of Douala in Cameroon, (KEN) confirmed, and reports suggested that none of the 105 passengers and 9 crew survived the accident. A local government official told the Associated Press (AP) that he "was there" and "saw none." Flight KQ507 left Douala early Saturday morning bound for Nairobi and made a distress call 13 minutes after takeoff. Contact then was lost. "The last message from the airplane was received by the control tower in Douala immediately after takeoff," the airline said. The flight, which originated in Abidjan had been delayed in Douala about an hour due to heavy rains and possible thunderstorms, according to press reports. The swamp was along the planned flight path, (KEN) said. Confirming casualties was difficult, (KEN) admitted as "most of the airplane is submerged under mud and water." Flight Safety Foundation's Aviation Safety Network reported that the airplane was 1 of 3 recently delivered 737-8ALs that were leased from Singapore Aircraft Leasing Enterprise (SIL). Its 1st flight was just last year. USA (NTSB) officials reportedly were scheduled to arrive in Cameroon to assist with the investigation.
Later, (KEN) said that the flight data recorder from the 737-8AL was recovered "and appeared to be in good condition," adding that "the recovery is still going on under very difficult circumstances" and that (KEN) was flying victims' relatives to Cameroon while working to "put measures in place to minimize disruptions on (KEN)'s flight schedules."
The wreckage examination suggests that the airplane was steeply banked to the right at impact. There was thunderstorm activity in the area at the time.
June 2007: 1st Embraer E170 (00128, 5Y-KYJ) (GECAS) (GEF) leased.
August 2007: (ILFC) (ILF) announced the following lease contract: Kenya Airways (KEN) for 1 new 737-800 (35286) for 8 years with delivery in October 2008.
September 2007: Air Europa (ARE), Copa Airlines (COP) and Kenya Airways (KEN) officially became SkyTeam (STM) alliance's 1st "associate airlines," which the (STM) alliance said grows its network by +47 additional destinations and nearly +500 additional daily flights. (STM) alliance associate airlines will enjoy many of the benefits of full membership such as linking loyalty programs, sharing airport lounges and "seamless" flight connections to (STM) carriers. But the associates will operate under the direction of a sponsor member that represents their interests in all decision-making regarding the (STM) alliance and serves as the liaison between associate and alliance members. "Our entry into SkyTeam (STM) alliance effectively increases the reach of our network across the globe" Copa (COP) (CEO) Pedro Heilbron said. "Our passengers will connect seamlessly between (COP) and our SkyTeam (STM) alliance partners using a single ticket."
February 2008: Kenya Airways (KEN) will suspend its 3x-weekly Paris Charles de Gaulle service on February 26 owing to a plunge in bookings that followed a French government advisory against travel to Kenya. "We are hopeful that we will resume Paris flights for the summer high season once the travel advisory has been removed" (CEO) Titus Naikuni said.
May 2008: Kenya Airways (KEN) will launch services to Antananarivo and boost flights to West and Central Africa, Dubai and Guangzhou. It did not offer a timetable. Service to Paris Charles de Gaulle, suspended in February following a French government advisory against travel to Kenya, should resume in June.
June 2008: Kenya Airways (KEN) reported a net profit for its fiscal year ended March 31 of +KES3.87 billion/+$60.7 million, down -5.6% from +KES4.1 billion earned in the prior year, a drop it attributed to political violence in the country during the final quarter following a disputed election in late December. (KEN)'s board said that it was pleased the profit decline was "marginal" given the temporary reduction in service, including suspending flights on its successful Nairobi to Paris Charles de Gaulle route, necessitated by violence that claimed >1,000 lives, and displaced >300,000. Managing Director Titus Naikuni explained that "January to March is usually our peak period" but that decidedly was not the case in the recently concluded year. "The events post-election had a negative impact on our revenue," he said, adding "at 1 point 1 of our 777s was parked for days with no passengers."
Fiscal-year revenue rose +2.9% to KES60.47 billion, while expenses increased +5.4% to KES53.89 billion, producing an operating profit of +KES6.58 billion, down -13.9% from +KES7.64 billion the prior year. Operating margin was 10.9%, down -2.1 points.
2x-weekly Nairobi to Paris Charles de Gaulle (CDG) flights are expected to resume this month and return to 3x-weekly (the level operated since October 2006) in July, if the French government removes its travel advisory for Kenya, Naikuni said. (KEN) said its fleet expansion remains on track, with an E170 and 3 737-800s scheduled for delivery between August and November. 1 of the 737-800s is a replacement for the 737-800 lost in a May 2007 crash in a swamp approximately 20 km SE of Douala in Cameroon, killing all 114 aboard. It noted that Boeing (TBC) has informed it that 9 787s originally due for delivery from 2010 to 2012 will be "delayed in the region of 2 years."
The board said that "whilst there are opportunities for future growth," it is carefully monitoring "the credit crisis in developed economies, as well as the recent significant increases in fuel prices. Both these factors could significantly affect the company's growth plans." Naikuni commented that political stability in Kenya going forward is critical for (KEN) to remain profitable.
USA and Kenya announced an "open skies" agreement in Washington. The deal is effective immediately, and allows USA carriers to fly to another African country from Kenya after 3 years. Kenya is the USA's 20th "open skies" partner in Africa.
July 2008: Kenya Airways (KEN) will take delivery of a 3rd 72-seat E170LR in August, in addition to the 1st of 3 737-800s it expects to take this year.
August 2008: Lufthansa (DLH) Consulting (LCG) extended its contract with Kenya Airways (KEN) and will help the airline establish a new Hub Control Concept at Nairobi Jomo Kenyatta to be integrated with (LCG)'s already implemented Operations Control Center infrastructure.
Kenya Airways (KEN) took delivery of its 3rd E170LR. The airplane seats 72Y and is leased from (GECAS) (GEF).
737-86N (35632, 5Y-KYD), delivery (GEF) leased.
September 2008: Kenya Airways (KEN) will launch 3x-weekly, Nairobi to Guangzhou on October 28, using a 777-200ER.
No longer flies nonstop Mombasa to London, 1x-weekly.
October 2008: Kenya Airways (KEN) reported a +KES736 million/+$8.5 million profit in its fiscal 1st semester ended September 30, down -62.7% from the +KES1.97 billion earned in the year-ago period, as fuel prices rose and it managed only "paltry" passenger growth, owing to the tourism decline caused by the violence that followed last December's elections.
6-month revenue rose +12.4% year-over-year to KES34.07 billion, while expenses were up +20.8% to KES32.46 billion. Operating profit fell -53.1% to +KES1.61 billion from +KES3.42 billion in the semester ended September 30, 2007. (KEN) said that both passenger traffic and capacity rose by +2%, with yield up +4.4%.
(KEN) said it was "optimistic" that its performance will improve in the current half, with increased passenger numbers, higher yields and an improved exchange rate against the USA dollar, the key drivers. It added that the "stability" of the country's coalition government "remains vital" to attracting tourists and that the global economic downturn's effect on the African and Kenyan economy "is still uncertain."
(SITA) reached a 5-year, $10 million agreement with (KEN) to provide its (VSAT) technology for deploying satellite networks. The system will streamline 46 remote sites into a single satellite hop to head offices in Nairobi and the reservations host in Europe.
January 2009: Kenya Airways (KEN) took delivery of 737-8Q8 (35286, 5Y-KYE) on lease from (ILFC) (ILF).
February 2009: Kenya Airways (KEN) expects to report a profit for its fiscal year ending March 31 but warned that the figure will be as much as -25% lower than the +KES5.5 billion/+$67.8 million earned in 2007 to 2008. "The benefits that accrue from the decline in jet fuel prices are being offset by the hedge costs, thus impacting on the profitability," Chairman Evanson Mwaniki said. The Kenyan shilling also has declined against the USA dollar. (KEN) reported a +KES736 million profit in the 6 months ended September 30.
737-86N (35637, 5Y-KYF) (GEF) leased.
March 2009: Kenya Airways (KEN)'s 2 largest shareholders are Air France (AFA)/KLM (26%) and the Kenyan government (23%).
(KEN) may start flights to Iran following government talks. Iran is a major importer of Kenyan tea, while Kenya buys a lot of Iranian oil-related products.
June 2009: Kenya Airways (KEN) posted a -KES4 billion/-$49.2 million loss for its fiscal year ended March 31, reversed from a +KES3.87 billion profit in the prior year and the 1st annual deficit it has endured since its privatization in 1996. (KEN) said the loss was driven by fuel hedging losses and depreciation of the Kenyan shilling versus the USA dollar. "We have had to take a huge charge of KES7.5 billion in our income statement and this is really as a result of the huge dive in the oil prices compared to where we were hedged at," Finance Director Alex Mbugua told investors, according to Kenya's Capital Business. "This has happened to all airlines. It's not peculiar to Kenya Airways (KEN)."
(KEN) said hedging losses are likely to continue in the current financial year because an undisclosed portion of its fuel consumption is hedged at around $110 per barrel. It had issued a profit warning in early February saying its net income would be down for its 2008 to 2009 fiscal year but had not anticipated posting a loss. Full fiscal year revenue lifted +19% to KES71.8 billion.
(CEO) Titus Naikuni told reporters that the carrier will expand both its fleet and its network in its current fiscal year but did not provide details. It currently operates 28 airplanes to 44 destinations. He added that (KEN)'s hedging policy is under review to determine whether it should be continued.
1 MD-11F (KLM) wet-leased to fly Nairobi - Amsterdam.
July 2009: Kenya Airways (KEN) and its partner, Precision Air (PRT) have reduced their number of flights to Zanzibar to allow for runway refurbishment. The surface will be closed between 1900 hours and 0700 hours for 14 months until August 2010.
August 2009: Kenya Airways (KEN) will launch 2x-weekly, Nairobi - Ndola service September 17.
(KEN) workers represented by the Aviation & Allied Workers Union called off a three-day strike after reaching an agreement with management on a pay increase, (KEN) said in a statement. Flights from Nairobi were delayed as some 3,000 workers went on strike over pay. The new plan includes an interim wage award of +10% for the 1st year and another +10% for the 2nd, (KEN) said. (KEN) said the 3-day strike by its employees cost it -KES600 million/-$7.6 million.
September 2009: Kenya Airways (KEN) launched 3x-weekly, Nairobi - Gaborone service.
October 2009: Kenya Airways (KEN) starts 2x-weekly flights to Malabo in the nouveau oil-rich nation of Equatorial Guinea. (KEN) starts 3x-weekly flights to Kisangani in the Democratic Republic of Congo.
November 2009: In the last 6 months, April through September, Kenya Airways (KEN) earned a net profit of +$11 million, citing a favorable foreign exchange rate and the resurgence of crude oil prices. Revenue declined -2%, helped by a weaker local currency which boosted tourist receipts, but operating costs increased +2%. A major labor strike also did damage during the peak summer season and only ended after management agreed to +20% wage hikes.
(CEO) Titus Naikuni was injured when assailants robbed a restaurant where he was dining.
December 2009: Safair (SFA) has established a base in Nairobi, Kenya. (SFA) will base 3 airplanes at Wilson Airport and hopes to secure a number of contracts from Kenya Airways (KEN), whose owners include (KLM) and the United Nation's (UN)'s World Food Program. (SFA) will locate 2 737-300s and 1 Hercules in Nairobi.
(SFA) parent, Aergo Capital (CLJ) Chief Executive Officer (CEO) Fred Browne said "There is a lot of demand in Kenya and we would like to double the size of the business in the next 12 months." (CLJ) is involved in wet and dry leasing and also has shareholding in an airplane maintenance facility at Johannesburg International airport.
January 2010: 767-300ER, (ILF) 18 month leased.
February 2010: Kenya Airways (KEN) flew 2.14 billion (RPK)s traffic in the fiscal 3rd quarter ended December 31, up +1% year-over-year. Capacity rose +5% to 3.18 billion (ASK)s and load factor slipped -2.2 points to 67.4% LF. Passenger numbers rose +4.2% to 773,079.
May 2010: Finnair (FIN) will lease 2 E170s to Kenya Airways (KEN) for 4 years beginning June 1. The value of the lease agreement is nearly $20 million. The leasing arrangements are being made by USA lessor Jetscape Inc.
June 2010: Kenya Airways (KEN) is giving away free football/soccer t-shirts to any passengers flying to Johannesburg for the FIFA Football World Cup, June 15 - July 15.
July 2010: Jet Airways (JPL) and Kenya Airways (KEN) reached a code share agreement under which (JPL) will place its code on Kenya's daily Mumbai - Nairobi service beginning July 22. Under terms of the agreement, members of either frequent flyer program will be able to earn and redeem miles on the both networks.
Jetscape leased 2 new E190ARs to Kenya Airways (KEN) scheduled for delivery in December 2010 and May 2011.
August 2010: Kenya Airways (KEN) launched 2x-weekly, Nairobi – Luanda flights on August 17 in cooperation with (TAAG) Angola Airlines (ANG).
(KEN) leased a 737-300 from (KLM) for 2 months. It will initially be used to boost services on (KEN)'s Nairobi - Mombasa route.
Kenya Airways Group Managing Director & (CEO) Titus Naikuni said (KEN) is considering canceling the 9 787s it has on order, and claimed Boeing (TBC) has informed him that the 787 Dreamliner's 1st delivery to (ANA) will be delayed another 3 months.
(TBC) has now stated that 1st deliveries will slip into 2011.
Naikuni said he is already in discussions with Airbus (EDS) regarding ordering A330s as a replacement for the 787s. "Yes, I would dare canceling the  order," he said. "If [Boeing] can't deliver, we will cancel. We will take a decision before the end of the year."
He added that he spoke to (TBC) representatives "and they informed me there is a further 3-month delay in the 1st deliveries." He pointed out that a delay in 1st deliveries "would not [necessarily] affect our first deliveries, which are scheduled for around 2013." But he acknowledged that (KEN) "can only confirm" its delivery schedule "after the 1st delivery" to (ANA) takes place.
(KEN)'s initial order for 6 787s plus 6 options was placed in March 2006 with deliveries of its 1st 2 scheduled for September 2010. (KEN) later converted 3 of its 6 options to firm orders. The 787s are part of (KEN)'s fleet modernization and expansion plan, and are slated to replace its aging 767s. While (KEN) has some flexibility in retaining its 767s, their interiors and (IFE) would need to be upgraded at a major cost if they remain in the fleet for an extended period.
Naikuni noted (TBC) has not offered compensation for the delayed 787 deliveries nor offered to participate in 767 retrofits, "which is very disappointing." (KEN) currently operates 29 airplanes including 4 777-200ERs, 6 767-300ERs, 14 737s and 5 E170LRs. "We are mainly a Boeing (TBC) operator, but it is doable to switch to Airbus (EDS)."
(KEN)'s expansion plans are ambitious and (COO) Bram Stellar said (KEN) will need additional airplanes even if the 787s are delivered in a reasonable time frame.
"The plan is to launch a new destination each month for the next 3 years," he said. "We want to fly to each capital in Africa, add more destinations in Europe [and] Asia and commence operations to Latin America." Sao Paulo is earmarked as its 1st Latin American destination and Kuala Lumpur is a possible addition in Asia. (KEN) launched several new destinations this year, including Muscat in June, Juba in July and Luanda this month, lifting its network to 50 points.
Next month, it will launch services to Maputo, followed by N'Djamena in October, Jeddah and Malinde in November, and Rome Fiumicino (FCO) in December.
(FCO) will become its 4th destination in Europe. It also has secured 2 additional slots at London Heathrow (LHR), which will allow it to increase Nairobi - (LHR) frequencies to 9x-weekly for its coming winter schedule.
767-319ER (30586, 5Y-KYW), (GEF) leased, ex-(G-CEOD).
September 2010: Amadeus has been selected by Etihad Airways (EHD), Hong Kong Airlines (CRY) and Kenya Airways (KEN) to provide real-time travel insurance content, product availability and booking functionality through the airlines' direct booking channels.
Kenya Airways (KEN) and Travelport jointly announced a global, full-content 5-year agreement for Galileo and Worldspan-connected users worldwide that will enable full access to (KEN)’s flights and fares.
October 2010: Japan Airlines (JAL) and Qantas Airways (QAN) expanded their code share agreement to allow (JAL) to place its code on (QAN)'s 2x-daily, Singapore Changi - Brisbane service from October 1. (JAL) is suspending its own Tokyo Narita - Brisbane service on September 30 after 22 years of operating the route.
A new code-sharing agreement between Qantas Airways (QAN) and Kenya Airways is expected to help (QAN) boost its presence in the African market. Under the deal, (QAN) will put its code on daily (KEN) flights between Bangkok and Nairobi, and Kenya Airways (KEN) will put its code on daily, (QAN) services between Bangkok and Sydney.
The code share will begin on November 15. There is “considerable potential” for growth in both leisure and business travel between Australia and Kenya, says Group Executive (QAN) Commercial, Rob
Gurney. Kenya is Northeast Africa’s leading tourism destination,
and Nairobi is the region’s major business and aviation hub, Gurney says. The deal “positions (QAN) well to capitalize on that [market] potential.” Gurney said the code share will complement (QAN)’s
existing direct service between Sydney and Johannesburg, which the carrier recently upgraded to daily flights. “We believe this is the ideal time to be enlarging our footprint in Africa, with the [soccer] World Cup in South Africa having delivered global coverage of not
just the host country but the continent as a whole,” Gurney said.
November 2010: SEE ATTACHED AIR TRANSPORT WORLD (ATW) ARTICLE ON KENYA AIRWAYS (KEN) - - "KEN-2010-11-A/B/C/D/E."
Kenya Airways (KEN) will operate 3x-weekly, Nairobi - Rome Fiumicino 767-300ER service on December 13 in code share with Alitalia (ALI). (KEN) will resume 6x-weekly, Nairobi - Malindi service on December 6 aboard an E170.
(KEN) reported a net profit of +KES1.44 billion/+$172 million for its fiscal 1st half ended September 30, a +67% increase from the KES860 million it earned in the year-ago period. Revenue soared +23.1% to KES41.2 billion. Operating profit heightened from KES162 million to KES2.83 billion. (EBIT) margin was 5.8% compared to 0.5% in 2009.
“Kenya Airways (KEN), riding on a strong industry up-cycle, achieved positive growth during this period and successfully launched new destinations including Muscat, Juba and Luanda,” Managing Director, Titus Naikuni told investors.
6-month operating costs rose +19.3% to KES25.9 billion, mainly owing to a +29.1% hike in fuel costs and a +20.9% increase in staff costs. (KEN), which in recent months avoided a new strike by its staff, said employee costs as a percentage of total costs has grown from 9.6% in 2006 to 14.4% this year, and doubled to KES10.2 billion in real value in the 5-year period. “In order to secure profitability in the future, employee cost in the future will need to be carefully managed in order to slow down this trend,” it warned.
Traffic (RPK)s rose +9.3% year-over-year to 4.36 billion on a +3% increase in capacity to 6.2 million (ASK)s, producing a load factor gain of +4.1 points to 70.2% LF. Passengers carried grew +6.7% to 1.52 million. (CASK) (in USA dollars) rose +16.2% to 5.32 cents and (RASK) lifted +71% to 7.49 cents. Yield per (RPK) improved +25.1% to 9.75 cents.
(KEN) added 3 destinations in the reporting period and had 29 airplanes in operation as of September 30, +4 more than a year earlier.
Naikuni said (KEN) has not yet decided whether to purchase A330s as a substitute for delayed 787s it has on order.
January 2011: Kenya Airways (KEN) said its domestic traffic surged + 35% (RPK) in December, boosted by additional frequencies on key routes and the relaunch of flights to Malindi, a city on Kenya’s Indian Ocean coast. With forward bookings strong, (KEN) has acquired 2 737-300s, 2 E170s, and 1 E190. Like so many airlines, Kenya Airways (KEN) eagerly awaits its 787 to expand internationally.
February 2011: Kenya Airways (KEN) flew 2.3 billion (RPK)s traffic in its 2010 fiscal 3rd quarter ended December 31, 2010, up +8.9% over the year-ago period, on a +5.2% increase in capacity to 3.4 billion (ASK)s. Average load factor improved 2 points to 69.8% LF. Passenger boardings rose +7.3% to 829,263.
(KEN) posted a net profit of +KES1.4 billion/+$165 million in the 1st half ended September 30, a +67% increase on the year-ago period, on a +23% rise in revenue to KES41.2 billion driven by higher passenger numbers, lower fuel hedging costs and higher yields.
Passenger boardings within Kenya rose +23% during the quarter compared to the year-ago period and load factor averaged 70.3% LF. Within Africa (excluding Kenya) enplanements rose +4.2% to 439,555 on a +7.2% capacity increase. Passenger uplift to/from Europe increased 5.4% to 102,493 backed by 2.5% capacity growth with the introduction of flights to Rome Fiumicino in December. Load factor to/from Europe was 73.5% LF, up +1.7 points.
(KEN) took delivery of the 1st Embraer E190 Advanced Range airplane, with which it intends to serve the Lusaka, Kigali, Bujumbura, and Maputo routes. It now operates 6 E-Jets.
April 2011: Kenya Airways (KEN) received Kenya Civil Aviation Authority and UK Civil Aviation Authority certification for its 737-800W flight simulator.
May 2011: As the Kenyan flag carrier, Kenya Airways (KEN) operates a scheduled, jet airplane network throughout Africa, to Europe, and to the Indian subcontinent.
(IATA) Code: KQ - 706. (ICAO) Code: KQA - (Callsign - KENYA).
Parent organization/shareholders: Individual Kenyan shareholders (32.5%); (KLM) (26%); Government of Kenya (22%); Kenyan Institutional investors (15.7%); foreign institutional investors (4.36%); & individual foreign investors (0.07%).
Owns: Precision Air (PRT) (49%).
Alliances: Skyteam Alliance (STM); Aeroflot Russian Airlines (ARO); Air Botswana; AirFrance (AFA); Air Mauritius (MAU); Air Nigeria; Alitalia (ALI); China Southern Airlines (GUNJ); Jet Airways (JPL); (KLM); Korean Air (KAL); Linhas Aereas de Mocambique (LAM); MartinAir (MTH); PrecisionAir (PRT); Qantas (QAN); Rwanda Airlines (RWA); and TAAG Angola Airlines (ANG).
Main Base: Nairobi Jomo Kenyatta International airport (NBO).
Domestic, Scheduled Destinations: Kisumu; Lamu; Malindi; Mombasa; & Nairobi.
International, Scheduled Destinations: Abidjan; Accra; Addis Ababa; Amsterdam; Bangkok; Bujumbura; Cairo; Cape Town; Cardiff; Dar Es Salaam; Djibouti; Douala; Dubai; Dusseldorf; Entebbe/Kampala; Harare; Hong Kong; Johannesburg; Khartoum; Juba; Kigali; Kinshasa; Lagos; Lilongwe; London; Luanda; Lubumbashi; Lusaka; Mahe Island; Malindi; Mumbai; Muscat; Nampula; Rome; Yaounde; & Zanzibar.
Kenya Airlines (KEN) will launch 2x-weekly, Nairobi - Cotonou - N'djamena 737-800 service on June 19.
June 2011: Kenya Airways (KEN) reported a net profit of +KES3.54 billion/+$41.8 million for its fiscal year ended March 31, up +73.9% over a +KES2.04 billion profit in the prior fiscal year.
“This is an exceptional performance,” Group Finance Director, Alex Mbugua said, noting that (KEN) “managed to reach two historic milestones in the reporting year, by surpassing the 3 million [annual] passenger mark and exceeding the $1 billion [annual] revenue mark. These key milestones were reached without [negatively impacting] the yields.”
Revenue soared +21.3% to KES85.84 billion on higher volumes and higher yields in both its passenger and cargo business. Passenger revenue rose +19.9% to KES73.35 billion and cargo revenue was up +20% to KES6.52 billion. Almost half of its revenue is generated in Africa.
Passenger yield in USA dollars ((KEN)’s preferred way of measurement) increased +7.2% to 9.79 cents and strengthened +11.5%, when translated into Kenyan shilling, primarily due to a weaker Kenyan currency in the period. (RASK) improved +11.7% to 6.78 USA cents, while (CASK) heightened +7.1% to 5.27 USA cents. Cargo yield per kg rose +13.7% to 1.49 USA cents.
Operating profit almost tripled to +KES5.82 billion from +KES1.84 billion in the year-ago period and operating margin was 6.8%. Mbugua pointed out that European airline groups Lufthansa (DLH) and Air France (AFA)/(KLM) (which is the largest shareholder in (KEN) with 26%) reported operating margins of just 3.2% and 1.7%, respectively, in their most recent reporting year.
Total operating expenses grew +16.1% to KES80.02 billion, mainly owing to the +31.7% rise of its fuel bill to KES24.78 billion, the weaker Kenyan shilling and increased operations as it opened 6 new destinations and increased frequencies on existing routes. “We have relentlessly pushed our reach to new and promising markets regardless of the increasingly competitive business environment,” said (CEO) & Group Managing Director Titus Naikuni. (KEN) intends to pursue its growth strategy and will open eight new gateways in the current fiscal year including N’djamena, Ouagadougou, Abuja, Beirut, Kilimanjaro, Port Louis, Asmara, and Jeddah. 2x-weekly service to N’djamena will commence this month.
To support further growth, (KEN) is in negotiations with Embraer, Naikuni revealed. “We are talking about a potential order for an additional 8 to 10 E-jets,” he said. (KEN) took delivery of a 7th E-jet and will take delivery of a further 3 E190s this fiscal year, bringing its E-jet fleet to 10 units.
Naikuni also revealed discussions with a potential lessor for a 747F are ongoing and could be finalized soon. It also wants to add 2 737-300Fs. “We have been slow to develop cargo,” he admitted, “but the potential is great. We did belly cargo but the next step is full freighters. We are really excited about it.” (KEN) is also looking at closer cooperation on cargo with its SkyTeam (STM) Alliance partners, which will be discussed at the (STM) board meeting during the coming (IATA) Annual General Meeting (AGM) in Singapore, he said.
Full-year passenger boardings rose +8.5% to 3.14 million and traffic increased +10.2% to 12.8 billion (RPK)s on a +5.9% hike in capacity to 12.8 billion (ASK)s. Passenger load factor gained +2.7 points to 69.2% LF.
Kenya Airways (KEN) received compensation from Boeing (TBC) for the delay of its 787 Dreamliners, although the amount does not fully cover the expenses associated with the delay,said Group Finance Director, Alex Mbugua.
(KEN) mid-April reached a settlement with (TBC) on a new delivery schedule for 9 787-8s, and finalized a purchase agreement signed in 2006 after previously threatening to cancel the order over delays to the program. The 787s are part of (KEN)'s fleet modernization and expansion plan, and are slated to replace its aging 767s. Delivery of (KEN)'s 1st 2 787s was initially scheduled for October 2010; it now expects them to arrive in the 4th quarter of 2013, with the remaining seven in 2014 and 2015.
“We received some compensation, in cash and in kind,” Mbugua confirmed. He declined to release specific details citing “confidentiality issues” but admitted the “compensation covers only part of the expanses we incurred owing to the three-year delay. No, we’re not happy about that.” (KEN) calculated that the direct operating expenses owing to the delay, including upgrading of the interiors/In-Flight Entertainment (IFE) of the 767s, additional maintenance costs and the higher fuel burn of the 767 compared to the 787, amount to at least $300 million. “And this excludes the competitive and image impact,” he added.
(KEN) Group Managing Director & (CEO) Titus Naikuni told investors he could not guarantee the (KEN) 787 Dreamliners would be delivered in 2013, as foreseen in the settlement agreement. “We’re in the hands of Boeing (TBC) on this one.” He said the delay had a negative effect on (KEN)’s planned network expansion noting that “some routes that we wanted to open have to wait.”
(KEN) has not yet listed an engine selection for the 787s and intends to exercise options on +4 additional 787s “after the initial 9 787s have been delivered.”
As of March 31, (KEN) had 31 airplanes, including 6 767-300s, 4 777-200s, 6 737-300s, 4 737-700s, 5 737-800s, 5 E170s and 1 E190 (which compares to 27 airplanes at the end of (FY) 2009 - 2010).
Kenya Airways (KEN) has entered into an 8-year lease agreement with Air Lease Corporation (ALE) for three new Embraer E190ARs, scheduled for delivery in August and September, and May 2012.
(KEN) will launch 2x-weekly, Nairobi - Cotonou - Ouagadougou 737–800 service on July 15.
July 2011: Kenya Airways (KEN) signed a letter of intent (LOI) with (GECAS) (GEF) for the lease of two new 777-300ERs as part of its long-term expansion plan, Group Managing Director, Titus Naikuni revealed. The new 777-300ERs are in addition to its 787 Dreamliner order and are expected to be delivered at the end of 2012 - early 2013, if the contract is firmed, he said.
(Ken) would use the wide bodies on new routes to India and other points in the Far East as well as Dubai. Traffic rights are no issue, he said, noting (KEN) has the rights to Delhi and is in talks regarding Mumbai. Kenya and the (UAE) have an "open skies" agreement.
(KEN) operates 4 777-200s in a 2-class configuration with 320 seats. “We have not yet decided on the configuration of the 777-300ERs, but seat density will be higher than our 777-200s,” he said. (KEN)’s 1st 787s are slated to be delivered in the 4th quarter of 2013. “I pray to God, Boeing (TBC) will not change [the delivery schedule] again,” he commented.
Naikuni also confirmed (KEN) concluded an agreement for a 747-400F and is looking at 2 737Fs. The 2nd-hand 747 is leased and is expected to start flying with the (KEN) livery in October. A team is inspecting the 2 737Fs “for the moment. Then we will make a decision and we expect to have them in September.”
(KEN) recently signed a (LOI) for 10 Embraer Ejets with a further 10 options. (KEN) currently operates 2 E190s and 5 E170s in a 2-class configuration. 2 new E190s, with seat-back In-Flight Entertainment (IFE) in both classes, will join its growing fleet before year end. (KEN) is using the E-jets on thin routes and new routes in Africa. “When you open a new route in Africa you traditionally go in with a single frequency. We realized this was not a good service. The E-jets allow us to have a high frequency,” he noted.
(KEN) is moving ahead with its plan to add 7 new destinations this year and 7 next year as part of its long-term strategy to “unlock Africa” by flying to capital cities across the continent by the end of 2013. (KEN) commenced 2x-weekly 737 service to Ouagadougou last week, its 9th destination in West Africa. While most new routes will be in Africa, (KEN) has Beirut and Jeddah (JED) mapped as new routes. (JED) has been on its wish list for a while, “but slots are a problem,” he said. “They have offered slots which do not fit well in our schedule. We are negotiating.”
The (KEN) (CEO) reiterated his call for more aviation liberalization and privatization on the continent, allowing for more intra-African cooperation and eventually mergers. “Ethiopian (ETH) is an airline that I admire a lot, but they are state-owned. It is difficult to forge cooperation with them,” he admitted. “My advice to Africa is: Governments get out of [airline] ownership.” He pointed out there are “still governments in Africa that dictate where their airline will fly and it does not matter for them if they transport air or passengers.”
(KEN) is one of the few privately owned and profitable airlines in Africa. (KEN) is looking to increase capital to support its ambitious growth plan; management will present details later.
August 2011: Kenya Airways (KEN) is considering setting up a low-cost carrier (LCC) subsidiary that would operate on domestic and regional routes. (KEN) stressed it is “too early to discuss the details and planning around "Jambo Jet,” referring to the name of the (LCC) ("Jambo" is a shortened version of "hello" in Swahili).
Managing Director & (CEO) Titus Naikuni revealed that the company has registered Jambo Jet as a business name. He added that the new unit will have a leaner cost structure compared to the mainline operation, though he declined to go into details.
Several regional or budget operators are currently registered in Kenya, including Jet Link, Fly540 and Airkenya, and operate from either Jomo Kenyatta International or Nairobi Wilson Airport. (KEN) commonly refers to them as “mosquitoes” because they “are always there, they are small but they sting,” (COO) Bram Steller said.
(KEN) remains tight-lipped on Jambo’s potential fleet but it has a Letter of Intent (LOI) with Embraer for up to +20 more E170s. It operates 2 E190s and 5 E170s in a 2-class configuration. 2 new E190s, with seat-back In-Flight Entertainment (IFE) in both classes, will join its growing fleet before year end. The airline is using the E-jets on thin routes and new routes in Africa.
At the recent "Connectivity in Africa" conference organized by Embraer in Nairobi, Naikuni said that the introduction of more E-jets would be accompanied by the expansion of its freighter fleet and cargo services to accommodate the huge amounts of baggage Africans traditionally carry.
(KEN) reported +27.6% year-over-year growth in passengers carried to 850,908 for the June quarter. Domestic enplanements rose +62.5% to 184,845, owing to additional daily frequencies on the Nairobi - Mombasa route using E-jets and the introduction of Malindi flights. Boardings on its extensive African network, excluding Kenya, jumped +18.1% year-over-year to 432,366.
September 2011: Kenya Airways (KQ) finalized an order with Embraer for 10 E190s, plus purchase rights for a further 16 E-jets, as part of its long-term expansion plan to fly to all African capital cities by the end of 2013. The order follows a letter of intent (LOI) signed at the Paris Air Show in June. Deliveries are scheduled to begin in the 3rd quarter of 2012.
“The Embraer E190 fleet will be key in ensuring Kenya Airways (KEN) becomes the leading carrier on the continent, interlinking African cities and (through our Nairobi hub) connecting Africa to the world,” (KEN) Group Managing Director & CEO Titus Naikuni said. “The Embraer E190’s excellent range, efficiency, size and superior level comfort will allow us to increase frequencies and start new routes, along with improving the overall passenger flying experience throughout Africa.”
The E190s will be configured in a dual-class layout with 96 seats, comprising 12C in business class and 84Y in economy. All seats will be In-Flight Entertainment (IFE)-equipped with individual touch screens.
The finalized E190 order is in addition to (KEN)’s (LOI) with (GECAS) (GEF) for the lease of 2 new 777-300ERs, expected to be delivered at the end of 2012 (early 2013 if the contract is firmed), Naikuni said.
(KEN) has also concluded an agreement for a 747-400F expected to arrive next month. (KEN) additionally has 9 787s on firm order plus four options. Its 787 Dreamliner deliveries are scheduled to begin in the 4th quarter of 2013.
(KEN) currently operates 5 E170s and 2 E190s, with a further 3 E190s (under an existing deal) to be delivered by early 2012.
October 2011: Kenya Airways (KEN) starts Nairobi - Jeddah flights later this month.
(KEN) has appointed Ms Busi Motlhasedi as Marketing & Public Relations (PR) Manager for Southern Africa. She was formerly marketing and promotions coordinator for Media 24.
November 2011: Kenya Airways (KEN) posted a strong year-on-year +18.2% increase in passengers carried to 1 million in its fiscal second quarter ended September 30.
Traffic jumped +14.8% on the year-ago period to 2.83 billion (RPK)s on a much lower increase of +7.3% in capacity to 3.64 billion (ASK)s, resulting in a +5.1 points rise of the average cabin factor to 77.8% LF. Cargo carried was up +13.5% to 16,021 tonnes, reflecting “an improved business environment and increased sales efforts.”
(KEN), which is 26% owned by the AirFrance (AFA)/(KLM) Group, registered a +42% jump in passengers carried on its domestic network to 202,826 on a +35.4% increase in capacity, owing largely to the introduction of the Nairobi - Mombasa shuttle from November last year, which averaged 10 daily flights and reintroduced Malindi flights. Domestic load factor was 74% LF, compared to 70.9% LF in the year-ago period.
Within Africa, but excluding Kenya, passengers rose +13.5% to 509,570 on a +4.4% rise in capacity. Load factor was 67.8% LF, up +7.3 points year-on-year. Enplanements to/from Europe grew +11% year-on-year to 158,247 on the back of a +8.6% capacity hike, resulting in an 83.3% LF seat occupancy level.
On routes to/from the Middle East, Far East and India, passenger numbers jumped +18.7% to 133,833 against a capacity growth of +9.7%, which led to a load factor of 88.3% LF, up +5.9 points year-over-year.
Kenya Airways (KEN) posted a net profit of +KES2.03 billion/+$21.3 million for its fiscal year first-half ended September 30, up +41.6% from +KES1.4 billion in the year-ago period. It noted the improved profitability was realized despite the challenging economic and geopolitical environment and said it was “optimistic” for continued improvement in the 2nd half.
Fiscal first-half revenue rose +33.3% year-over-year to KES54.9 billion but direct operating costs rose by +52.5% to KES39.5 billion, mainly due to an increase in operations and high fuel expenses. Fuel costs, excluding hedge costs, increased year-on-year +89.7% to KES21.2 billion. Consequently, six-month operating profit sank -57.2% to +KES1.02 billion.
(KEN)’s fiscal first-half traffic, in terms of (RPK)s, heightened +17.9% on a +13.2% increase in (ASK)s, largely as a result of increased frequencies and the launch of two new destinations (Ouagadougou and N’Djamena).
(KEN) took delivery of 3 new Embraer E190s and returned 1 767-300 to its lessor in the reporting period. This resulted in a net increase of 3 airplanes to 33 units, including 4 777-200s, 5 767-300s, 5 737-800s, 4 737-700s, 6 737-300s, 4 E190s and 5 E170s.
Passenger yields, including fuel surcharges in USA cents, increased by +0.9% and strengthened to 12.6% when translated into Kenya shillings, (KEN) said.
(KEN) (in which the Air France (AFA)/(KLM) Group holds a 26% stake and the Kenyan government holds 23%) intends to raise capital via a rights issue within the next 6 months to finance its 10-year expansion plan through Fiscal Year 2020 - 2021. The plan includes “new destinations roll out covering the 6 continents and a fleet acquisition plan.”
December 2011: The "Economist" in its article about Africa's economic prospects, mentioned a number of positive trends: High commodity prices, favorable demography, greater adoption of productive technologies, improving infrastructure, falling barriers to small business creation, more stable governments, better health care, falling trade barriers, more foreign investment, a growing middle class and indeed, greatly improved air links within Africa, thanks to airlines in countries like Ethiopia, Kenya, and South Africa.
January 2012: Kenya Airways (KEN) carried 956,742 passengers in its 3rd fiscal quarter ended December 31, a +15.4% increase on the year-ago period.
Traffic (RPK)s rose +9.9% on a system wide +6.4% lift in (ASK)s as a result of increased frequencies to several destinations and the launch of Jeddah operations. Load factor gained +2.2 points to 72% LF.
The amount of cargo carried was up +6.2% to 16,131 tonnes, on a +6.5% (ASK) capacity increase.
(KEN) said domestic enplanements were up +26% year-on-year to 205,654 on a +16.9% (ASK) capacity hike. Passenger growth was up +14% to 502,435 on routes to the rest of the continent, excluding Kenya, compared to a +3.9% capacity growth in 2010.
Passenger uplift to Europe rose +14.7% to 117,527 on the back of a +14.9% capacity increase, resulting in a 73.4% LF seat occupancy level.
On routes to/from the Middle East, Far East and India regions, boardings increased +6.8% to 131,126 and load factor was 75.4% LF.
Nine African airlines have come together to purchase airplane fuel jointly, a move the carriers believe will increase their leverage and raise the value and quality of fuel being procured.
According to the African Airlines Association (AFRAA), the nine airlines participating in the program include Kenya Airways (KEN), Ethiopian Airlines (ETH), Air Malawi (AML), Air Namibia (NAM), Air Seychelles (ASY), (LAM) Mozambique Airlines, Precision Air (PRT), Rwandair (RWA) and TAAG Angola Airlines (ANG).
The (AFRAA), which said more of its 32 members could join the program in the future, stated that the joint fuel buying project "is aimed at attaining better and stable unit price of fuel for the participating airlines, assuring quality of the product and supply reliability whilst the relevant fuel suppliers will benefit from higher fuel volumes purchased by airlines. Other areas of focus include addressing the incidents of high taxes, charges and fees levied on fuel, especially in African airports, and lobbying stakeholders for the elimination of monopoly fuel suppliers at some airports."
The carriers will purchase about 700 million liters of fuel in aggregate annually valued at about $1.5 billion. Fuel purchasing contracts for this year have already been jointly negotiated by the 9 carriers, the (AFRAA) said. While negotiations are being conducted by the carriers on a joint basis, fuel contracting will still be done by individual airlines.
"The contracts implementation dates will vary, with some airlines starting to purchase fuel under the [jointly] negotiated terms in February 2012," the (AFRAA) stated. "All contracts will, however, end in December 2012 and [be] replaced by new contracts for a full calendar year in 2013 and subsequent years following another bidding, evaluation, negotiation and awarding process to be carried out [jointly by the carriers] during the course of this year."
February 2012: Kenya Airways (KEN) and (KLM) have jointly launched a 2x-weekly, 747-400F Amsterdam (AMS) - Guangzhou (CAN) - Sharjah - Nairobi (NBO) - Lagos - (NBO) - (AMS) freighter service.
The new service, which marks (KEN)’s entry into the dedicated freighter segment, is an extension of an existing joint venture (JV) between (KEN) and (KLM). The airplane is owned by Martinair (MTH), a subsidiary of KLM.
(KEN) said it plans to introduce 12 freighters into its fleet over the next 10 years, some wholly owned and others leased, which it said is “to improve the airline’s overall cargo carrying capability and reduce over-dependence on the passenger fleet whose belly capacity is limited.”
The 747-400F has a one-off livery, featuring Kenya Airways Cargo and Air France (AFA)/(KLM) Cargo (- - SEE PHOTO - - "KEN-747-400F - 2012-02") to reflect the joint operation of the service and "Safari Connection," denoting its triangular network connecting Europe, China and Africa. The 747-400F bears the slogan “Hunting for Business” in Chinese Mandarin on its tail.
Servisair Cargo and Kenya Airways (KEN) signed a multi-year agreement for cargo handling services of (KEN)’s cargo at London Heathrow (LHR). The airline operates daily Boeing service between Nairobi and (LHR).
March 2012: In addition to Kenya Airways (KEN)’s goal to serve every city on the African continent by 2014, which is running slightly behind schedule, it is also interested in expanding beyond Africa and plans to commence service to Beirut “very soon," increase its service to India, resume service to Karachi in Pakistan, and is considering entering the Central Asian market. (KEN) is keen to enter new markets and plans to use Dubai as a transit city for some of the planned new routes.
Kenya Airways (KEN) will launch 4x-weekly, Nairobi - New Delhi 767-300 service on May 15.
April 2012: Kenya Airways (KEN) has selected the (GE) Aviation (GEC) (GEnx-1B) engine to power its 787-8s. (KEN) has 9 firm 787-8s on order, plus 4 options for 4 additional airplanes. The firm engine order is valued at $380 million at list prices, (GEC) said.
Airlines can select between the (GEnx) and the Roll-Royce (RRC) (Trent 1000) for the 787.
(KEN)’s 787s are scheduled to start delivery in the 4th quarter 2013.
"The 787 Dreamliner is expected to achieve between 15% to 17% fuel efficiency over the 767 with this particular engine type. This will enable the 787 to fly further with more passengers and cargo than the 767," (KEN) Group Managing Director & (CEO) Titus Naikuni said.
May 2012: Kenya Airways (KEN) recorded a +5.2% year-over-year increase in passengers carried to 832,366 during its fiscal fourth quarter ended March 31. Traffic increased +1.6% to 2.24 million (RPK)s on flat capacity of 3.29 million (ASK)s, pushing the load factor up +1.4 points to 68.1% LF.
During the quarter, capacity in Northern Africa grew +4.2% year-over-year, while East African capacity shrunk -21.2%. Southern Africa grew +10.4%, West Africa lifted +8.3%, Central Africa shrunk -12.9%, Kenya fell -10.6%, and Kisumu jumped +20.7%. Capacity into the Middle East, Far East and India regions grew by +3.6% mainly on the Bombay and Bangkok - Hong-Kong routes, while capacity into Europe shrunk by -5.0%, which (KEN) attributed to a frequency reduction to London and switching out a 767 for a 737 in Rome.
Passengers carried to Europe fell -4.1% to 113,184, while passengers carried in the Middle East, Far East and India regions jumped +6% to 117,543. Africa, excluding Kenya, grew+ 8.3% to 419,877, and passengers carried in Kenya lifted +4.2% to 181,762.
(KEN) said cargo tonnage increased +4.1% year-over-year to 14,909, on an improved business environment and increased sales efforts.
Spanish Information Technology (IT) specialist, Indra will help Kenya’s air navigation services provider, Kenya Airports Authority (KAA), modernize terminal operations at the country’s two international gateways: Nairobi’s Jomo Kenyatta and Mombasa’s Moi airports.
Indra will integrate a new Airport Operational Database (AODB) system with the (SAP)-based Enterprise Resource Planning (ERP) resource management system, making it possible for (KAA) to significantly increase efficiency by facilitating a much greater degree of automation.
The (AODB) system will streamline the collection of a wide range of airport operational information and update in real time all the data necessary for managing and allocating resources, such as boarding bridges, vehicles, ground personnel and check-in counters. This will help (KAA) improve service levels for both airlines and passengers, while at the same time optimizing resources. Increased automation should also help minimize the potential for management errors.
The new (ERP) system will support the management of the entire (KAA) business, allowing greater integration of the management systems used at Nairobi and Mombasa airports. As a result, operational information will flow automatically into the (ERP) finance module, automating invoicing and collections. The (ERP) will also include human resources, logistics and purchasing and market intelligence modules, all of which will help (KAA) to improve efficiency and reduce costs.
Indra will maintain these systems for the next 5 years.
Kenya Airways (KEN) now flies to India’s capital Delhi from its hub at Nairobi’s Jomo Kenyatta Airport. (KEN) will launch 6x-weekly, Nairobi - Kilimanjaro service on July 2.
(KEN) has detailed plans for a major expansion of its operations, which calls for launching services to North and South America, plus Australia, by 2017. Despite this expansion into new continents, (KEN) said the main thrust of its efforts will be to broaden its route map to Asia.
In China, (KEN) currently flies only to Guangzhou; by 2021, it plans to add Beijing, Shanghai, Chengdu, Chongqing, Xiamen, Kunming, and Urumqi. It also plans launch six new routes into India plus three elsewhere in Asia.
(KEN) is also planning growth in its existing European and Middle Eastern markets.
SkyTeam Alliance (SKT) member (KEN) said the next decade will see its route network rise from its current 56 destinations (45 in Africa) to 115. Its passenger fleet will more than triple to 107 airplanes (almost half of them wide bodies).
By 2021, (KEN) said the 787 will be its workhorse, with 32 forecast for its fleet. (KEN) has 9 787s on firm order, plus 4 options. (KEN) will operate the 777 on high-density routes, such as Nairobi to London or Amsterdam.
It plans also to operate 29 737 NextGens, plus 31 Embraer E190s, which will be used on thinner African routes that other carriers have either served with low frequencies or not at all.
Figures released by (KEN) and the Centre for Asia Pacific Aviation (CAPA) reveal (KEN)’s plans will require some $3.7 billion of financing over the next 5 years, through a combination of cash flow, debt and capital market funding.
(KEN) also aims to develop a fleet of freighters. Earlier this year, (KEN) and (KLM) jointly launched a 2x-weekly, 747-400F Amsterdam (AMS) - Guangzhou (CAN) - Sharjah - Nairobi (NBO) - Lagos - (NBO) - (AMS) freighter service. The new service marked (KEN)’s entry into the dedicated freighter segment.
(KEN) will take on a 2nd 747F freighter in Fiscal Year (FY) 2012 - 2013 and is planning for 7 777-200LRF freighters by (FY) 2020 to 2021. (KEN) also anticipates having 5 737-400Fs freighters by that date.
June 2012: Kenya Airways (KEN) profit dropped >-50% for the year ended March 31, compared to the year-ago period as (KEN) felt the effects of high fuel prices, the crisis in the eurozone and generally weak economic conditions.
It recorded a profit after tax of +KES1.66 billion/+$19.5 million, down from last year’s figure of +KES3.53 billion. Revenue rose +26% to a record KES107.9 billion, up from KES85.8 million.
Earnings represented a net profit margin of 1.5%, down from the previous year’s 4.1%.
(KEN)’s passenger numbers grew +11.8% measured in (RPK), compared to a rise in capacity of +7.9%. Load factor for the year increased to 71.7% LF from 69.2% LF. Cargo tonnage was also up, showing a rise of +10.8% and yield growth of +6.8%.
(KEN) said the results compared favorably with those of other industry players, given the challenging economic and geopolitical situation it had faced over the year. With pressure on yields likely in 2012, (KEN)’s board said it would continue to open new routes on a selective basis, invest in fleet development, and seek to improve its systems and customer service.
At the end of May, (KEN) detailed plans for a major expansion of its operations, which calls for launching services to North and South America, plus Australia, by 2017.
(KEN) has also made changes to its summer schedule, which include introducing new 3x-weekly Jomo Kenyatta - Dubai flights. It will suspend flights to Muscat and Rome, effective immediately, “due to capacity optimization across the network,” it said.
(KEN) is suspending services to Muscat (MCT) and Rome (FCO) as part of its capacity optimization plans aimed at increasing frequency on some existing routes, and introducing new destinations in Africa and the Middle East.
(KEN) Group Managing Director, Titus Naikuni said there was insufficient demand on the (MCT) - (FCO) route to sustain it. “Owing to the decreased passenger volumes on these routes, we have decided to re-align our capacity across the entire network to meet growing demand on other destinations including new ones,” Naikuni said.
Other changes include adding a 3x-weekly, Jomo Kenyatta (NBO) - Dubai (DXB) service, bringing to 10 the number of weekly flights.
(KEN) is also combining its daytime Lagos (LOS) and Accra (ACC) services, routing (NBO) - (LOS) - (ACC) - (NBO). As a result, (KEN) will be operating 12x-weekly service to (ACC) and 9x-weekly flights to (LOS). (KEN) has also increased frequency to Ndjamena to 3x-weekly. Flights to Dakar will connect through Ouagadougou (OUA), increasing frequency to (OUA) to 3x-weekly; Bamako flights will operate via Cotonou 3x-weekly.
(KEN) said introducing wide body capacity to (LOS) and (ACC) will have a “significant impact” on its passenger and cargo revenue streams and enable the airline “to offer more capacity and minimum connecting time between Guangzhou, Bangkok, Hong Kong, Dubai, Mumbai (BOM), and West Africa.”
Outside Africa, (KEN) flights to (BOM) will increase from daily to 10x-weekly, with 3x-weekly flights to Delhi. (KEN) will increase Jeddah frequency to 3x-weekly from July.
Kenya Airways (KEN)) has announced financing for the purchase of 9 new 787-800s, 1 777-300ER and 10 Embraer E190 airplanes, from the African Export-Import Bank (Afreximbank). The 787 and 777-300ER airplanes are slated for delivery during the 1st and 4th quarters of 2014, respectively, while the E190s are scheduled for delivery in the 3rd quarter of this year.
“Our 10 year strategy is quite robust,” (KEN) (CEO) & Group Managing Director Titus Naikuni said. “The new deliveries financed by (AFREXIM) will serve both capacity increases as well as allow for replacement of airplanes that are due for retirement. The 787 Dreamliners will replace the 767s, whilst the E190s will be used for capacity expansion on the Africa/regional routes.”
The Afreximbank financing package consists of a pre-delivery payment facility and an airplane delivery finance facility to fund the delivery of all 20 airplanes. The pre-delivery payments of the 9 787-800s will also be financed by proceeds of a recent (KEN) rights issue, under which it raised Ksh14.49 billion. The fleet expansion is part of (KEN)’s 10-year growth plan, with which it seeks to grow its fleet from 34 airplanes to 119 by 2021, and increase its destinations from 57 to 115.
July 2012: Kenya Airways (KEN) added one Embraer E190 to its fleet, bringing its Embraer fleet to 10. It acquired the airplane from Air Lease Corporation (ALE).
August 2012: Kenya Airways (KEN) has begun implementing a 2-phase program to reduce staff in a bid to cut costs.
A voluntary early retirement program began August 1 and will be followed by redundancies. (KEN) has not specified how many staff it plans to shed.
In June, (KEN) announced a -53% drop in profit for its fiscal year 2011/2012. It said that “a large increase in headcount” during the financial year, combined with “significant annual staff salary increments, and costly decisions driven by the collective bargaining agreements negotiations with staff unions” had driven labor costs “to unsustainable levels.”
(KEN) (CEO) & Group Managing Director Titus Naikuni said, “Despite various initiatives that we have put in place, our cost base continues to be extremely high. This, coupled with other direct operating costs, has put pressure on our contribution margin, reducing our overall ability to operate profitably.”
Staff costs at (KEN) have more than doubled over the last six years, up from KES6 billion/$70 million in 2007 to KES13.4 billion in 2012. During the same period, the total number of employees has grown from 4,154 to 4,834.
Naikuni said that a downturn in passenger numbers, declining revenues, unstable fuel prices and an increasingly competitive environment had all contributed to the current “harsh operating environment.”
He said (KEN) might have to outsource labor and services in some of the non-core functions of (KEN) as a result of the restructuring program. However, he insisted that (KEN) would “forge ahead with its 10-year growth strategy.”
The unions, however, have insisted they will fight the cuts, saying (KEN) has not fully explored other cost-cutting measures.
Later, Kenya Airways (KEN) said it has announced a new cost savings plan including -300 job cuts to be achieved through a voluntary retirement scheme and redudancies as well as outsourcing of some staff to service providers. This has caused major criticism from the Aviation and Allied Workers Union representing the majority of (KEN)'s employees as (KEN) had just recently announced a major route and fleet expansion plan.
Kenya’s Industrial Court has temporarily blocked Kenya Airways (KEN)'s recently announced plans to cut jobs in a bid to reduce costs.
(KEN) introduced a voluntary early retirement initiative at the beginning of August, after which it was planning to transition to mandatory redundancies if it had not received a sufficient number of volunteers.
The Aviation & Allied Workers Union turned to the court for a restraining order, arguing that (KEN) has not fully explored other cost-cutting measures. According to "Reuters," a court order imposed a temporary injunction that prevents (KEN) from proceeding with any negotiation or staff rationalization that could lead to redundancies.
(KEN) and union will reportedly hold a meeting with the Minister of Labor and the Attorney General later this month, and will return to court on September 21 for direction.
(KEN) has not specified how many staff it intends to lay off, but points out that staff costs have more than doubled over the last 6 years, while staff numbers during that period have increased by just >+16%.
Kenyan media reports suggest that, despite the stop order, (KEN) is continuing a program of assessments that the union claims is aimed at identifying staff destined for redundancy. (KEN) had hoped to draw up a final list of redundancies by the end of August.
September 2012: Kenya Airways (KEN) said 126 staff members have left (KEN), completing the voluntary redundancy phase of its cost-cutting program after a court order was lifted blocking plans to cut jobs.
The program was concluded despite a directive from Kenya’s Prime Minister, Raila Odinga earlier this month urging (KEN) to suspend its cutback plans until union negotiations were over.
The staff who accepted the layoff package account for nearly 21% of the 600 redundancies targeted as (KEN) tries to shave close to -KES1.2 billion/-$14 million a year from its labor costs.
(CEO) & Group Managing Director Titus Naikuni said staff would receive an estimated average pay-out of up to KES2 million.
(KEN), which is 26.7% owned by AirFrance (AFA)/ - (KLM), has embarked on an ambitious 10-year expansion plan that includes tripling its fleet from 35 airplanes, which is expected to cost $3.6 billion in the first five years.
Naikuni said (KEN) recognized “the need to rationalize the current business in order to create a platform for the planned growth of network and fleet.” He said the staff rationalization exercise was aimed at addressing internal inefficiencies, and reducing the employee cost base of KES13.4 billion by -10% to -15%.
“Our employee cost/person has doubled in 5 years [from $71.5 million in 2007 to $160 million in 2012] due to salary increases linked to union awards and job evaluation,” Naikuni said.
October 2012: Kenya Airways (KEN) returned to the Kenyan domestic route between its Nairobi (NBO) hub and Eldoret (EDL), the agricultural and athletic center in the western part of the country, on October 17. (KEN), which last served the city in 2004, will now operate the route 10x-weekly with its 72-seat E170s. Competition on the route comes from Jetlink Express’ 14 and Fly540’s 9x-weekly.
(KEN) believes new African rival FastJet will “get it right,” as it presses ahead with plans for its own "Jambo Jet" low-cost carrier (LCC) venture. FastJet (FSJ), which is backed by easyJet (EZY) Founder, Stelios Haji-Ioannou, will launch from Tanzania on November 15. (FSJ) poses a threat to (KEN) because it already has 4 African air operator’s certificates (AOC)s in Ghana, Angola, Tanzania, and Kenya through its acquisition of Fly540.
(KEN) Head Network Planning & Airline Strategy, Jimmy Kibati said: “[Failed budget carrier] Flamingo had the timing wrong, but the idea was right. Today is the right time because you can buy tickets on a [mobile] phone. FastJet (FSJ)’s management is experienced in low-cost carrier (LCC) operations. They will get it right.”
(KEN) is planning its own low-cost carrier (LCC) and has registered Jambo Jet as a business name. According to previous comments made by (KEN) (CEO), Titus Naikuni, the new (LCC) subsidiary will operate on domestic and regional routes.
Kibati declined to give further details on plans for Jambo Jet, and said (KEN) is “still scoping and evaluating” its plans. “I don’t want to comment, but it is coming. We just want to make sure that, whatever we do, we get it right. We will come up with more information once we are sure we are ready.”
However, Kibati also hinted that (KEN) might seek a partnership with FastJet. “Not every new entrant is competition. They could be a partner,” he said.
Embraer (EMB) reached a significant milestone, with the delivery of its 900th E-Jet, an E190, to Kenya Airways (KEN). The E190 airplanes are configured in a dual-class layout with 96 seats: 12C in business class and 84Y in economy. They feature individual screens for every seat, with In-Flight Entertainment on demand. This airplane joins (KEN)’s existing fleet of 12 Embraer airplanes, comprising a mixture of 5 E170s and 7 E190s. (KEN) has +7 E190 airplanes on order with a delivery each month between now and February 2013. The airplanes are operated from its Nairobi hub.
(KEN) has announced that it will convert 4 of its 737-300s to freighters with the 1st 737-3U8 (29088, 5Y-KQC) to be converted by Boeing Shanghai Aircraft Services at Shanghai Pudong International (PVG) later this year. It will be Boeing Shanghai’s 1st Passenger to Freighter (PTF) conversion. (KEN) plans to use the airplane for cargo services from Nairobi to Bangui M'Poko (BGF), Bujumbura (BJM), Dar-es-Salaam (DAR), Douala (DLA), Entebbe/Kampala International (EBB), Juba (JUB), Kigali Kanombe (KGL), Kinshasa N'Djili International (FIH), Luanda 4 De Fevereiro (LAD) and Yaoundé Nsimalen International (NSI) airports. (KEN) already jointly operates a 747-412BCF (24066, PH-MPS) with Martinair (MTH).
1 Embraer E190-100AR (00577, 5Y-FFC), ex-(PT-TGD), delivery.
November 2012: Kenya Airways (KEN) will add 4 extra weekly flights on Nairobi - Johannesburg service on December 1, with a new Embraer E190 airplane.
Kenya Airways (KEN) has been forced to stop selling seats between Lilongwe Kumuzu International airport (LLW), Malawi and Lusaka International airport (LUN), Zambia, following 4 years of operations on the route with 5th freedom rights. National carrier Air Malawi (AML) had complained to the government that (KEN)'s low fares would prevent it from operating on the route. Air Malawi (AML) has now partnered with Air Botswana (BOT) which operates 3x-weekly ATR 42-500 round-trips between the 2 cities. (KEN) operates a total of 4x-weekly flights with a mix of E170s, 767-300ERs and 777-200ERs but is now no longer allowed to carry local passengers.
(KEN) has a code share agreement with Vietnam Airlines (VIE) under which (VIE) will place its code on (KEN) Nairobi - Bangkok (BKK) service. (KEN) will place its code on (VIE) service to (BKK) from Hanoi and Ho Chi Minh City.
(KEN) is still evaluating the launch of budget arm Jambo Jet and has recently secured approval for the carrier as a 737-300 operation. Jambo Jet, which is slated to operate domestic and regional routes, has been in the pipeline for nearly 18 months, but (KEN) is taking a cautious approach to the launch.
“We are still doing our homework and don’t want to go ahead and just create a mini Kenya Airways (KEN),” (KEN) (COO) Mbuvi Ngunze said. “We recently got our air services agreement, but we are not going to start just because [African start-up] FastJet (FSJ) is coming in.”
Ngunze said Jambo Jet was slated to operate (KEN)’s 737-300s, although he also made close reference to (KEN)’s Embraer airplanes, suggesting these could be earmarked for the new venture.
FastJet (FSJ), which is backed by easyJet (EZY) founder, Stelios Haji-Ioannou, will launch from Tanzania on November 15. (FSJ) poses a threat to (KEN) because it already has 4 African air operator’s certificates in Ghana, Angola, Tanzania and Kenya through its acquisition of Fly540.
December 2012: Kenya Airways (KEN) has been ordered by a local court in Nairobi to reinstate 475 of the 600 employees it had laid off earlier this year as part of its restructuring plan. All employees which have not voluntarily retired from the airline will have to be hired again based on the court order as (KEN) would not have complied with consultation and severance pay rules and regulations when it cut the jobs.
(KEN) and RwandAir ((IATA) Code: WB, based at Kigali Kanombe airport (KGL)) (RWA) have announced that they have entered into a strategic partnership agreement that will see the 2 carriers cooperate on flights between Kenya and Rwanda as well as cargo, maintenance and training. Further details about the agreement are expected to be announced at a later stage. (KEN) operates up to 4x-daily services between Nairobi and Kigali while RwandAir (RWA) offers 3x-daily flights on the route and a 3x-weekly service linking Kigali with Mombasa Moi International airport (MBA).
January 2013: Kenya Airways (KEN) is cutting its frequencies on the Nairobi - Mumbai route.
Kenya Airways (KEN) is expanding its influence in the African market by aligning itself with smaller carriers as it seeks to build its home base of Nairobi as a continental hub. This includes promoting greater cross-border cooperation and fostering economic development among nations which jealously guard their independence, despite the clear evidence that this has been a fundamental cause of their problems.
(KEN) as Africa’s 4th largest carrier and the continent's only member of the SkyTeam (STM) alliance, is focusing on airlines in S Africa, having already brought (LAM) Mozambique Airlines, Air Botswana (BOT), Air Malawi (AML) and (TAAG) Angola Airlines (ANG) into the fold.
On December 20 2012, (KEN) and RwandAir (RWA) announced plans to form a strategic partnership and build stronger relations including improved synergies in scheduling, reservation systems and a combined frequent flyer plan. The partnership will also strengthen the airlines' cargo, maintenance and flight training operations.
Meanwhile, Ethiopian Airways (ETH) looks to strengthen its Addis Ababa hub, as the Gulf carriers (now partnering with some global alliance airlines) expand their global networks across Africa.
Boeing Shanghai Aviation Services began its first Boeing 737-300 passenger-to-freighter conversion at its hangars at Shanghai Pudong Airport. The modification for Kenya Airways (KEN) is conducted under a Supplementary Type Certificate (STC) developed by Aeronautical Engineers and slated for completion in March 2013.
(KEN), for now, is retaining its order for Boeing 787 and is “still optimistic” of receiving the 1st 787 in the 1st quarter of 2014.
(KEN) has 9 787-8s on firm order to replace its aging fleet of 767 models, plus an additional 4 on purchase options. After a series of postponements related to the 787’s initial production problems, (KEN) is due to take delivery of the 1st of the 9 787s by the end of the 1st quarter of 2014 and the remainder by 2016. A spokesman for (KEN) said (KEN) is awaiting the outcome of a safety review of the 787 by the (FAA) and Boeing (TBC) before deciding if it has so look for a substitute for the 787.
(KEN), meanwhile, added a new Embraer E190. The airplane is the 6th of 10 fully owned E190s that (KEN) expects to receive by mid-year as it expands its African route network. The E190 has a 2-class layout, with 12C seats in business and 84Y in economy class.
(KEN) remains tight-lipped on whether it will use some E-jets on its proposed low-cost carrier (LCC), Jambo Jet. Jambo Jet received its air operator’s certificate (AOC) late last year. (KEN) launched plans to set up a (LCC) 2 years ago, but has not revealed fleet, routes or start date.
February 2013: Kenya Airways (KEN) and Etihad Airways (EHD) have signed a code share agreement for flights between Abu Dhabi and Nairobi beginning April 1. (KEN) will launch a 3x-weekly, Nairobi - Abu Dhabi service in June, on which (EHD) will then place its code as well as on 27 destinations across the (KEN) domestic network. (KEN) will place its code on (EHD)’s existing daily, Nairobi - Abu Dhabi service and on 32 destinations on (EHD)’s global network.
March 2013: Kenya Airways (KEN) will launch 3x-weekly flights from Nairobi to the Zambian city of Livingstone on June 2. The new route will include a stopover in Harare, Zimbabwe. It will primarily cater for tourist traffic to Victoria Falls.
Livingstone will become the Kenyan flag carrier's 2nd Zambian destination, alongside capital city, Lusaka.
Boeing Shanghai & Aeronautical Engineers have completed the conversion of 1 Kenya Airways (KEN) 737-300 and have inducted a 2nd, scheduled for redelivery in June.
April 2013: Kenya Airways (KEN) has begun daily, Guangzhou - Bangkok - Nairobi flights, from 4X-weekly. (KEN) will begin Lilongwe - Lusaka service on June 3.
Kenya Airways (KEN) (CEO) Titus Naikuni has said he is “cautiously optimistic” that low-cost carrier (LCC) subsidiary, Jambo Jet will launch this year.
May 2013: Kenya Airways (KEN) adds 4th weekly, Nairobi - Maputo (Mozambique) service on June 10.
June 2013: Kenya Airways (KEN) commenced services on the 3,400 km route from its Nairobi (NBO) hub to Abu Dhabi (AUH) on July 1, increasing the connectivity to the hub of its code share partner, Etihad Airways (EHD). (KEN) carrier offers 3x-weekly departures on the route which it operates using 737-800s. (EHD) also operates flights in the market from Abu Dhabi to Nairobi, offering daily frequencies.
(KEN) is mulling the acquisition of a Boeing 777F as part of its strategy to double its cargo revenues over the next 3 to 4 years.
(KEN) is seeking 8 737-800s and is preparing for the arrival of its 1st 787 in March next year.
August 2013: Kenya Airways (KEN) adds 2x-daily, direct flights Nairobi - Kigali, and – Bujumbura.
(KEN) which already operates flights to Lilongwe in Malawi, added a second destination in the country from its Nairobi (NBO) hub. Beginning on August 2nd, (KEN) offers 3x-weekly A320-operated flights on the 1,600 km route to Blantyre (BLZ) in southern Malawi. The route is seasonal and scheduled to terminate on August 28.
SkyTeam (STM) Alliance-linked carrier, Kenya Airways (KEN) is to code share with fellow African operator Air Namibia (NAM).
(KEN) will place its 'KQ' code on Air Namibia (NAM) flights from Johannesburg and Lusaka to Windhoek, while (NAM) will place its 'SW' code on Kenya Airways (KEN) flights from Lusaka and Johannesburg to Nairobi. "By facilitating convenient travel for our passengers, this code share agreement will enable us to make a contribution towards spurring sustainable development in Africa," says Kenya Airways (KEN) Chief Operating Officer (COO) Mbuvi Ngunze.
Air Namibia (NAM) brings to 20 the number of code share arrangements that Kenya Airways (KEN) has signed with international airlines.
All flights in and out of Jomo Kenyatta International Airport (JKIA), Nairobi, were canceled Wednesday morning, August 7th as firefighters tackled a major blaze in the terminal building.
Kenyan Interior Minister, Joseph Ole Lenku told the (BBC) from the scene the fire started in the immigration hall around 0430 local time. Although it had been contained, “We have lost the arrival areas and a number of offices have been gutted.” No casualties had been reported, he added.
There is no indication when flights will resume. Television pictures from the scene showed flames leaping from the terminal building along a wide front. Other images showed that part of the terminal building’s roof had caved in.
Incoming flights were diverted to Mombasa and other airports in the region while the fire was raging. African budget carrier Fastjet, (FSJ) whose Fly540 Kenyan operation operates into Nairobi, said it has suspended its services. “Once the extent of the damage to the airport facilities is clear, the company intends to implement a plan to resume operations as soon as possible,” it said.
British Airways (BAB) said it had canceled Wednesday’s flight to Nairobi, and passengers were given the options of a refund or rebooking at a later date.
Kenya Airways (KEN) also suspended flights Wednesday: "Kenya Airways (KEN)'s management is working closely with The Kenya Airports Authority management and senior government authorities to see how we can resume some operations at the earliest convenience. Please note that no flights are expected to arrive or depart from (JKIA) until further notice. All other flights that were expected into (JKIA) have been diverted to Moi International Airport-Mombasa."
The Kenyan capital’s airport is not only the country’s main airport but acts as a regional hub. It handles around 6 million passengers annually. It is also a major freight hub, particularly for Kenya’s flower trade, which exports blooms internationally.
Later, Nairobi’s Jomo Kenyatta International Airport (JKIA), which was badly damaged by a fire on August 7th, reopened for flights. The Kenya Airports Authority (KAA) put in place a series of measures to get traffic flowing again, but warned that some passengers would still experience disruptions. The authority said the airport, a major hub for East Africa, partly reopened late Wednesday afternoon local time.
The (KAA) and airline staff worked overnight Wednesday into Thursday to convert part of the domestic departures building into a temporary international arrivals and departures hall, which is now handling international flights previously handled by the airport’s badly damaged international arrivals and immigration area. A further section of the terminal opened later for more international services.
Domestic flights are operating out of Kenya Airways (KEN)’s cargo terminal, while cargo flights are operating during an overnight slot.
The (KAA) reported that national carrier (KEN) had resumed “more or less normal operations.” It added that (KAA) personnel had given special safety briefings to other airport staff to ensure that international safety and security standards were maintained.
It added, however, that both international and local passengers “may experience some level of discomfort and delays” while work to restore normal operating conditions continued.
Kenya Airways (KEN) resumed all domestic services August 9 after the fire at the Jomo Kenyatta International Airport in Nairobi on August 7. International flights are up to 85%. Temporary arrival and transit facilities, and passenger holding areas are being used at this time. The Kenyan government is accelerating the building of a new Terminal 4 scheduled for opening next year.
September 2013: Kenya Airways (KEN) is to open non-stop services to the Chinese city of Guangzhou on November 19th. (KEN), which is linked to the SkyTeam (STM) alliance, is to operate 777-300ERs on the route. (KEN) said the airplanes will be delivered in October.
(KEN) already operates daily to Guangzhou via Bangkok. (KEN)'s (CEO) Titus Naikuni, says 3 of these 7 services will be replaced by the non-stop operation.
Kenya Airways (KEN) code shares with China Southern Airlines (GUN) through Guangzhou. (KEN) adds that it is discontinuing services to Hong Kong via Dubai from the beginning of October, flying only via Bangkok 3x-weekly.
Kenya Airways (KEN) will take delivery of its 1st of 3 777-300ERs (the largest in (KEN)’s fleet) in mid-October. The 400-seat airplane will enter service on the Nairobi - Guangzhou route in November. (KEN) operates daily service to Guangzhou via Bangkok, but will begin operating 3x-weekly nonstop service between Nairobi and the southern Chinese city with the arrival of its new 777-300ER.
The 777-300ER has been acquired as part of (KEN)’s 10-year strategic plan, which targets an increase in fleet size from 44 to 107 airplanes and destinations from 62 to 115 by 2021.
Kenya Airways (KEN) has already taken delivery of 3 Embraer E190s this year; a further 2 777-300ERs are expected to be delivered in mid-2014. Its fleet comprises 4 777-200ERs; 6 767-300ERs; 14 737s (737-800s, 737-700s and 737-300s); 18 E170s and E190 regional jets; and 2 737-300F conversions. (KEN) also has 9 787s on order, the 1st of which is due to be delivered in early 2014.
Kenya Airways Group Managing Director & (CEO) Titus Naikuni said the 777-300ERs “will enable us serve our existing markets much more effectively and facilitate the opening of new long-haul routes in the near future. Our current 777-200ER airplanes have a seating capacity of 322 passengers while this one has 400 seats and impressive cargo capacity [>7,000 cubic feet of cargo volume — over 20 metric tons].”
Naikuni said new direct flights to Guangzhou (announced just days after Kenya’s President Uhuru Kenyatta concluded a state visit to China, where the two countries signed financing deals worth about KES425 billion/$4.8 billion, would facilitate interaction between the 2 regions. He said, “China has emerged as a key trading partner for Africa. Our direct flights to Guangzhou seek to build on this relationship in order to make a contribution toward sustainable development of Africa.”
Kenya Airways (KEN) will continue to operate 4x-weekly service to Guangzhou via Bangkok. (KEN) also announced changes to its Hong Kong routes, which will operate 3x-weekly service via Bangkok from October 2; it will discontinue service via Dubai.
(KEN) has appointed Willem Alexander Hondius as (CEO) of Jambo Jet, (KEN)’s new low-cost carrier (LCC) subsidiary. (KEN) said in April it was “cautiously optimistic” the (LCC) would launch this year. (KEN) said the appointment “moves the airline closer to the realization of its goal.”
Hondius is a former (KLM) Royal Dutch Airlines General Manager for Eastern Africa and Project Manager for Jambo Jet. Between 2005 and 2012, he was Executive VP & Chief Commercial Officer (CCO) of Transavia Airlines (TAV), a wholly owned subsidiary of (KLM).
Jambo Jet will lease 3 737-300s from (KEN)’s mainline fleet, initially serving domestic destinations including Eldoret, Kisumu and Mombasa before later branching out into East African regional services.
October 2013: Kenya Airways (KEN) plans to open routes to every continent within the next 10 years by utilizing a fleet of Boeing 787s and 777s. (KEN) plans to open 6 new destinations every year as its 9 787s and leased 777-300ERs begin to arrive.
Jimmy Kibati, Head Network Planning & Strategy said Moscow, Chengdu, Beijing, Madras, Kuala Lumpur, Shanghai, São Paolo, and Colombo are among the destinations on (KEN)'s agenda.
(KEN) would then “look across the Atlantic and the Pacific” to open routes to places “along the lines of” Washington and Incheon. The next phase in (KEN)’s development would be building its network to African cities.
As the airline expands, Kibati said his “vision of the future would be to have an African airline alliance that includes Ethiopian (ETH), EgyptAir (EGP) and Royal Air Maroc (RAM),” which could take advantage of the growing air market of the continent.
Another area of expansion will be cargo, said Kibati, who told delegates at the World Routes Airline Briefing that (KEN)’s existing joint venture (JV) with Martinair (MTH) was working well and that it was now exploring the possibility of a (JV) with an Asian partner.
Kibati described the fire that gutted parts of its Nairobi base airport, Jomo Kenyatta, earlier this year "as a major blow" for (KEN) but also says it was a "blessing in disguise" as it meant the Kenyan government was now committed to modernizing and transforming its facilities.
Boeing (TBC) has delivered a 777-300ER (Extended Range) to (GE) Capital Aviation Services (GEF) for lease to Kenya Airways (KEN). It is (KEN)’s 1st 777-300ER and the largest airplane in (KEN)’s fleet.
(KEN)’s 777-300ER is configured with 400 seats, 28PY in Premier World and 372Y in Economy, and features (USB) ports, power sockets and an all-new in-flight entertainment system throughout the cabin. The airplane can fly up to 7,825 nautical miles/14,490 km and is equipped with (GE90-115B) engines.
(KEN) is set to take delivery of a further 2 777-300ERs, including an additional lease, as part of (KEN)’s 10-year strategic plan dubbed ‘Project Mawingu.’ (KEN) plans to increase its fleet size from 44 airplanes to 107 by 2021 and destinations from the current 62 to 115. Currently (KEN) operates an all-Boeing (TBC) long-haul fleet of 4 777-200ERs and 6 767-300ERs.
With this delivery, (KEN) is also working with Boeing (TBC) to support the Alaskan Sudan Medical Project (ASMP) by carrying 10,400 lbs/4,717 kg of humanitarian supplies on the 777-300ER’s delivery flight to Kenya. The (ASMP) will use the supplies to build medical clinics, drill water wells and construct bio-sand filters for clean water in the Jonglei region of South Sudan. The humanitarian cargo will also include water pumps and agriculture equipment to support local farmers, fulfilling the (ASMP)’s mission statement of saving lives through health, clean water and agriculture.
(KEN) operates a fleet of >25 Boeing airplanes including, 777s, 767s and 737s. (KEN) serves >60 destinations across Asia, Africa, the Middle East, and Europe and has 9 787 Dreamliners currently on order from Boeing.
November 2013: Kenya Airways (KEN) has reported a profit after tax of +KES384 million/+$4.4 million for the half year ended September 30, marking a significant turnaround from the -KES4.8 billion loss reported during the same period last year.
(KEN) and AirFrance (AFA) - (KLM) signed an expanded joint venture (JV) for passenger and cargo services, effective January 1st, 2014. The 2 carriers will add new routes, in addition to those currently served in The Netherlands, France and Kenya: London to Nairobi, Amsterdam to Entebbe/Kigali, Amsterdam to Lusaka, and Harare, and Amsterdam to Kilimanjaro/Dar es Salaam.
December 2013: Kenya Airways (KEN) began 3x-weekly, Nairobi to Guangzhou Boeing 777-300ER service.
Kenya Airways ((IATA) Code: KQ, based at Nairobi Jomo Kenyatta) (KEN) has once more suspended flights to the South Sudanese capital, Juba, this time until January 1, 2014. International carriers including Fly540 ((IATA) Code: 5H, based at Nairobi Jomo Kenyatta) and RwandAir ((IATA) Code: WB, based at Kigali) (RWA) had resumed flights on December 19 in the wake of turmoil occasioned by a failed coup attempt in South Sudan. However, with the situation deteriorating once more, some carriers have pulled the plug on their flights to South Sudan indefinitely though flydubai (FDB) as well as Sudan's Nova Airways ((IATA) Code: O9, based at Khartoum) (NOV) have decided to maintain their services. Both the United States Air Force (USF) and the Royal Air Force (RRR) have operated evacuation flights for their citizens and personnel stationed in the country. The world's youngest nation, South Sudan has been teetering on the brink of all out civil war in which President Salva Kiir, a member of the country's largest ethnic tribe, the Dinka, is pitted against his former deputy Riek Machar, from the smaller Lou Nuer tribe. The 2 tribes have had violent conflicts (mostly centered in Jonglei State) ever since South Sudan seceded from Sudan in 2011.
Kenya Airways (KEN) currently operates 45 airplanes, to 40 countries, 53 destinations on 69 routes and 102 daily flights.
March 2014: Kenya Airways (KEN) will take delivery of its 1st 787 on April 4, marking the 1st of 6 of the type to join its fleet in 2014.
(KEN) said the new additions, which also include a 2nd 777-300ER slated for delivery in May, form a key part of its "Project Mawingu" 10-year growth strategy.
The airplanes will be used as part of a “deliberate effort” to step up (KEN)’s long-haul capacity, allowing (KEN) to increase its number of direct flights, and add new destinations and frequencies. “Routes to Paris, Amsterdam and Beijing are among the destinations earmarked for direct flights, as we continue exploring new markets that will be instrumental in helping us achieve our objective, to contribute toward the sustainable development of Africa,” (KEN)(CEO) Titus Naikuni said.
Kenya Airways (KEN) also recently confirmed plans to launch new budget carrier, Jambo Jet on April 1.
April 2014: Comair (CML) low-cost carrier (LCC) subsidiary, Kulula (KUL) has signed its 1st code share agreement, with Kenya Airways (KEN). The bilateral code share, which takes effect May 1, has been approved by Kenyan and South African authorities. It builds on an interline agreement, which has been in place between the 2 carriers since 2013.
Under the new deal, kulula (KUL) will place its code on Kenya Airways (KEN)’s services between Johannesburg and Nairobi. In return, kulula (KUL) will add its partner’s designator on all its South African domestic routes (Cape Town, Durban, George, and East London). Kenya Airways (KEN) Commercial Director Gerard Clark said there is potential to expand the relationship further in the future.
Earlier in April, Comair (CML) (CEO) Erik Venter said that Kulula (KUL) was eyeing potential code share opportunities as it transitions to a hybrid model to attract more corporate travelers.
Comair (CML) recently switched to a new Sabre Information Technology (IT) system, opening up the potential for new kulula (KUL) partnerships. “One opportunity that comes with Sabre is that we can now do code shares with Kulula (KUL). A lot of airlines that fly to South Africa are not alliance members. If they are not partners with South African Airways (SAA) or British Airways (BAB), they have been out in the cold, so this gives up the opportunity to introduce code shares with the Kulula (KUL) brand.
Kenya Airways (KEN)’s low-cost carrier (LCC) subsidiary, Jambojet launched its 1st flight on April 1 after nearly 3 years on the drawing board - - SEE ATTACHED - - "KEN-2014-04-JAMBOJET LAUNCH." The inaugural Boeing 737 flight took off from Jambojet’s Nairobi home base for Mombasa with 120 passengers on board.
Jambojet will lease 3 737-300s from (KEN)’s mainline fleet. It will initially add domestic flights from Nairobi to Kisumu and Eldoret, before later branching out to regional destinations including Arusha (Tanzania), Bujumbura (Burundi), Dar es Salaam (Tanzania), Entebbe (Uganda), Kigali (Rwanda) and Kilimanjaro (Tanzania).
JamboJet is headed by former (KLM) Royal Dutch Airlines General Manager Eastern Africa, Willem Hondius, who was previously Executive VP & (CCO) of (KLM) leisure subsidiary, Transavia Airlines (TAV).
Hondius said JamboJet plans to convert people from road to air travel, with fares starting at around $33. “We just want to own a slice of the 30 million-plus passengers per year market,” Hondius said. “We are not competing with the established carriers as such.”
Kenya is Eastern Africa’s biggest economy. Its expanding middle class is fueling the growth of leisure and travel spending. Air travel take-up could also be spurred by a government ban on public transport at night, which was introduced last year to reduce road deaths.
JamboJet will sell fares online via its homepage, using mobile phone-based payments to get around Africa’s low credit card penetration. Passengers will have to book early to secure the lowest fares, which will include 10 kg of hand luggage. JamboJet will outsource some functions, including Maintenance and Human Resources (HR), to Kenya Airways (KEN).
The startup is aiming to carry 600,000 passengers annually. JamboJet acknowledged the market is “intensely competitive” and said regional destinations will be added “in due course.”
Kenya Airways has pressed ahead with JamboJet against the backdrop of possible competition from Fastjet (FSJ), an African low-cost carrier (LCC) backed by easyJet (EZY) founder, Stelios Haji-Ioannou. Fastjet (FSJ) could set up budget operations in Kenya because it holds a Kenyan (AOC) from its acquisition of Fly540.
Kenya Airways (KEN) has taken delivery of its 1st of 6 787 Dreamliners (35510, 5Y-KZA - - SEE PHOTO - - "KEN-787-8-2014-04"). (KEN) has a total of 9 787s (powered by the (GE) Aviation (GEnx-1B) engine) on order. The recently delivered 787 is scheduled to begin flying regionally within Africa in the coming weeks, before beginning long-haul service to Paris in early June. The 787 will form the backbone of (KEN)’s future long-haul fleet. Kenya Airways (KQ, Nairobi Jomo Kenyatta) has officially taken delivery of its 1st of 9 787-8s (35510, 5Y-KZA) from Boeing (TBC) at a ceremony held in the USA on April 1. The 787 is expected at Nairobi Jomo Kenyatta on April 4.
Its 1st scheduled services are expected to include Mombasa as well as Paris (CDG) and Johannesburg O R Tambo. In the long-term, (KEN) will also use the 787 on flights to Beijing, China.
The 787 marks the start of the 2nd phase of a USD1.9billion airplane purchase transaction arranged by the African Export-Import Bank (Afreximbank) which also involves +1 777-300ER.
The new fleet additions, which also include a 777-300ER slated for delivery in May, form a key part of its "Project Mawingu" 10-year growth strategy.
SEE VIDEO ON 787-8U8 DELIVERY - -
May 2014: Kenya Airways (KEN) begins 4x-weekly, Abuja to Nairobi Boeing 737-700 service on June 6.
June 2014: Kenya Airways (KEN) has reintroduced, 5x-weekly, Nairobi to Zanzibar service and will go to daily service next month.
(KEN) launched its 1st Boeing 787 on the 4x-weekly, Nairobi to Paris route on June 4.
Kenya Airways (KEN) has named Mbuvi Nguze as its new Managing Director and (CEO) to succeed Titus Naikuni, who will retire at the end of November. Nguze, who is currently (COO), will take up the new position on December 1.
In January, the board of directors hired international executive search firm, Spencer Stuart Ltd, to assist in identifying a successor to Naikuni, who has led the airline for 11 years. “The board will lend its full support to Mr Nguze in leading the (KEN) team in running the company business,” Kenya Airways (KEN) said.
SEE VIDEO ON FIRST FEMALE PILOT OF 787 - -
July 2014: Kenya Airways (KEN)’s traffic was up 1.1% in 2013; Nairobi to Mombasa is the top Summer 2014 (S14) route:
Launched in January 1977, following the breakup of the East African Community and the subsequent disintegration of East African Airways, Kenya Airways (KEN) is the flag carrier of Kenya, headquartered in Nairobi. The SkyTeam (STM) Alliance member, in which (KLM) and the Kenyan government have a 26.7% and a 29.8% stake respectively, has established itself as the 5th largest operator in Africa, with nearly 4.2% of weekly seats, behind South African Airways (SAA), EgyptAir (EGP), Royal Air Maroc (RAM), and Ethiopian Airlines (ETH). Operating a fleet of 47 units (including both Boeing (TBC) and Embraer (EMB) airplane types), (KEN) has been growing without interruption in recent years, as analysis of Innovata seat capacity indicates that around 135,000 weekly seats will be offered this August, and +33% more since anna.aero last looked at (KEN) 5 years ago.
Examination of (KEN)’s traffic data indicates that (KEN) carried 3.7 million passengers last year - - SEE ATTACHED - - "KEN-2014-07-PASSENGERS AND LF," representing a modest increase of only +1.1%, when compared to 2012 figures. Even though its load factor went down by -3.1%, 2013 was not a bad year for (KEN), as it managed to grow its total revenue by +6% to $1.2 billion as well as its (ASK)s by +1.8%.
Overall, looking at passenger development between 2005 and 2013, (KEN)’s traffic has soared, noting +55% growth over this time frame, while its load factors have fluctuated between 65% LF and 74% LF.
Nairobi to Mombasa is #1 route by seats - - SEE ATTACHED - - "KEN-2014-07-TOP 13 ROUTES."
(KEN) operates 116 non-stop services to a total of 48 countries in Africa, Europe, the Middle East and Asia. (KEN)’s main base is at Nairobi, from where it operates a network of 37 routes this summer, of which Mombasa is the most frequently flown destination, being operated 9x-daily. In fact, (KEN) is the dominant carrier at the gateway to Kenya’s capital, featuring a seat share of 62% and being 12x- larger than the 2nd operator Ethiopian Airlines (ETH). In terms of its most significant services, the top 13 routes account for 29% of all weekly seats, representing a modest increase of +1% from last year’s figures.
Kenya Airways (KEN)’s weekly seat capacity posted +7.3% growth this August, when compared to data from the corresponding week last year, with eight of the top 13 airport pairs growing, while the 6,827 km sector from Nairobi to London Heathrow saw its operations unchanged. Therefore, the stand out performance is that emanating from the route to Lagos, the seventh fastest-growing city in the world (according to City Mayors Statistics). Benefiting from this favorable economic climate, (KEN) has increased its capacity by +104% or +1,453 weekly seats in the past 12 months. On the other hand, this year’s top position (the Nairobi to Mombasa airport pair) provided the greatest capacity decrease (-25%), as a result of (KEN) having been reduced its frequency from 12x- times to 9x-daily.
(KEN) began Boeing 787 service on Nairobi to Johannesburg, replacing the Boeing 767 on this route.
On April 1st 2014, (KEN) launched its low-cost carrier (LCC) subsidiary: — Jambojet (JMB), with the addition of 3 domestic services. Operating a fleet of 3 737-300s, the new start-up is currently flying from Nairobi to Kisumu with 2x-daily flights, to Eldoret with 10x-weekly operations as well as to Mombasa with 4x-daily services. Therefore, the capacity decrease of (KEN) on the Nairobi - Mombasa airport pair comes as a result of (KEN) transferring some of its operations to Jambojet (JMB) in April.
777-3U8ER (42097, 5Y-KZX) and 787-8 (36040, 5Y-KZC) (Charleston #35) deliveries.
August 2014: Kenya Airways (KEN) will curtail its West African operations in the wake of the most recent outbreak of the deadly Ebola virus which has now claimed the lives of >1,100 people.
The Kenyan national carrier said it suspended flights to Freetown and Monrovia Roberts with effect from August 19. Both airports were served via Accra. "Following the [Kenyan] Ministry of Health statement; Kenya Airways (KEN) wishes to confirm that we will comply with the advice to suspend our commercial flight operations to Liberia and Sierra Leone temporarily. This operational decision, effective August 19th 2014 midnight, is based on the situation risk assessment by Kenya’s Ministry of Health," it said.
So far, British Airways (BAB), Emirates (EAD), Gambia Bird (GMQ), Arik Air (AKI), ASKY Airlines (AKY), and Air Côte d'Ivoire (VRE) have suspended their respective flights to Guinea, Sierra Leone, and Liberia with Delta Air Lines (DAL) scheduled to terminate its Accra to Monrovia Roberts extension of its New York (JFK) to Accra flights.
787-8 (36041, 5Y-KZD) (Charleston #38) delivery.
September 2014: Kenya Airways (KEN) has added Far East 787 destinations and is continuing to move its flights to Nairobi’s new Terminal 1A.
After receiving its 4 787 on August 28, (KEN) has deployed the twinjet on its existing Nairobi to Bangkok to Guangzhou and Nairobi to Bangkok to Hong Kong services. These join its initial 787 routes, which comprised Paris and Johannesburg.
(KEN) has 9 787-8s on order, with 5 still awaiting delivery. 2 of these are slated to arrive in October. The 787s have been brought in to replace (KEN)’s 767-300ERs, which have already exited the fleet, leaving it with 37 airplanes: 4 787-8s, 3 777-300ERs, 4 777-200ERs, 5 737-800s, 4 737-700s, 2 737-300F freighters and 15 Embraer E190s.
“As part of (KEN)’s long-term fleet and route development strategy, over the next 10 years (KEN) is implementing a plan geared at growing the fleet size, modernizing the airplane equipment and simplifying it by reducing the number of airplane types from 7 to 4,” (KEN) said.
Kenya Airways (KEN) has also migrated another 11 flights to Terminal 1A at its Jomo Kenyatta International Airport home hub. It now operates 15 flights from the new facility, which is dedicated to (KEN)and its SkyTeam (STM) Alliance partners.
Terminal 1A has capacity for 2.5 million passengers per year, but will only handle departures until its completion in 2015. Dar-es-Salaam, Delhi, Entebbe, Johannesburg, and Luanda are already served from the new facility.
(KEN) has been affected by the W African Ebola outbreak, causing some cancellations and disruption to its Liberia and Sierra Leone flights.
(KEN) has taken delivery of a 3rd Boeing 787 Dreamliner airplane.
November 2014: News Item A-1: Kenya Airways (KEN) reported a net loss of -KES10.45 billion/-$115 million for the 6 months ended September 30, reversing a net profit of +KES384 million/+$4.2 million during the same period in the previous financial year.
Although revenue for the period was up +5% to KES56.8 billion, costs were also significantly higher, with direct operating costs up +13% to KES42.2 billion, mainly due to an increase in capacity following delivery of 5 Boeing 787 Dreamliners as part of (KEN)’s fleet renewal plan. Fleet ownership costs also increased +30%, reaching KES7.8 billion.
This resulted in an operating loss of -KES5.05 billion for the 1st half of this financial year, reversed from an operating profit of +KES1.8 billion in the same period last year.
(ASK)s increased +15.2% to 8.2 billion year-on-year, while (RPK)s rose +5.2% to 5.2 billion. Yield fell -5.6% compared to the year-ago period.
(KEN) said the business environment in the 1st half of the year had been “very challenging,” continuing the trend from last year, following the fire at Nairobi Jomo Kenyatta International Airport (JKIA), and regional insecurity leading to reduced travel into Kenya. In the 1st half of this year, travel advisories by various countries warning against travel to Kenya in the wake of terrorist attacks, also impacted traffic flows. The situation has been further aggravated by the Ebola pandemic, which led to the suspension of Kenya Airways (KEN) flights to Sierra Leone and Liberia in August.
Looking forward, (KEN) said its positive highlights include deploying a new fuel efficient fleet, and the opening of a dedicated new Kenya Airways (KEN) terminal at (JKIA), new lounges and improved infrastructure at the airport.
However, (KEN) also issued a profit warning, saying: “Given the factors and concerns stated above, 2nd-half-year results of (KEN) are unlikely to reverse the full impact of the 1st-half loss and attain results close to or at last year’s levels. It is reasonable at this time to anticipate earnings for the financial year 2014 to 2015 that will be lower than the previous year’s by at least -25%. The board of directors has taken adequate measures to guard against further erosion of shareholder value and remains optimistic that the revamped customer experience offered by various investments and other initiatives by management will return (KEN) to profitability.”
News Item A-2: Kenya Airways (KQ, Nairobi Jomo Kenyatta) (KEN) has officially retired the 767-300ER from its longhaul fleet with the recent return of its last airplane of the type, (29386, 5Y-KYV), to its lessor, the International Lease Finance Corporation (ILFC). The 767s have been systematically replaced with an incoming fleet of 787-8s of which the Kenyan national carrier now has 6. Kenya Airways (KEN) also operates 4 777-200ERs and 3 777-300ERs.
(KEN) currently operates 45 airplanes, and travels to 40 countries, 53 destinations on 70 routes and 135 daily flights.
February 2015: Kenya Airways (KEN) begins 3x-weekly Nairobi to Hanoi Boeing 787 service on March 30.
March 2015: The devastating impact of sanctions by the Tanzania Civil Aviation Authority against Kenya Airways (KEN) clearly prompted heavy political pressure on Kenya's top duo, and it appears that the lobbying and what essentially amounted to "get this sorted or else," messages bore fruit, when Kenya President Kenyatta spoke to Tanzania President Kikwete to lift sanctions imposed by both countries earlier on, at a lower level.
It is understood that Kenya Airways (KEN) and other Kenyan airlines will resume their full schedule with immediate effect and that Mwanza will also remain open for Kenyan airlines to operate into.
The result of presidential intervention also exposes the incredible stubbornness and "cutting off your nose to spite your face" attitude among tourism and aviation bureaucrats, and the responsible ministers on both sides of the border. Hotheads from Kenya and Tanzania for a few days were in a shouting match frenzy on social media and comment sections in the print media, and several notorious individuals even spoke of cutting diplomatic ties. This exposed their dire lack of common sense and their ability to seek compromise over confrontation, something they seem to thrive on.
In turn, Tanzanian tourist vehicles will again be able to access Jomo Kenyatta International Airport. 1st in December, and then again in February, this whole scenario was made impossible by a verdict of none other than the Kenyan Cabinet Secretary for East African Affairs, who also still holds the tourism portfolio, clearly failing on both scores and paving the way for the confrontation.
It is hoped that the directive by the heads of state to resume deliberations, and it is understood that the entire range of issues from both sides will be put on the agenda, can bring their bureaucrats to heel, and have them do what is necessary to ensure continued smooth cross border operations for tourism and aviation.
Sources close to Tanzania's Fastjet (FSJ), an airline clearly meeting nationality requirements, as is outlined under the Bilateral Air Services Agreement between the 2 countries, are contrary to what ill-intended individuals have been peddling in public, having expressed quiet hope that their landing rights will soon be approved now that the spirit of give and take has resumed at the highest level of relations between the 2 countries.
Said an Arusha-based source: "Keeping these bans up, even in an election year, would have caused immense economic damage on both sides. This was the best outcome, and we hope that the next round of negotiations will reach agreement on a whole range of issues, all aimed to fully implement the East African Community [EAC] protocols in place about economic cooperation and access to each other's markets. We need to learn to be partners. Our parks and attractions complement each other. Serengeti and Masai Mara are trans-boundary ecosystems which need protecting and using in equal terms. Tsavo and Mkomanzi, and Amboseli and Kilimanjaro and Arusha National Park are adjoining, too, and I personally hope that sooner, rather than later, we can return to the pre-1977 modus operandum, when borders were open across the (EAC) and everyone could travel freely."
June 2015: News Item A-1: "Struggling Kenya Airways (KEN) Enlists Seabury Consulting for Help" ch-aviation Newsletter, June 2015.
(KEN) Chief Executive Officer (CEO) Mbuvi Ngunze has revealed that the struggling East African carrier has hired Seabury Consulting, a boutique advisory firm specializing in airline strategy development and turnarounds, to help revamp its operations.
Speaking at a press conference in Nairobi, Ngunze said that since the beginning of the year, Seabury specialists had been analysing Kenya Airways (KEN)'s sales, ticketing, and network planning functions with a view to bringing them into line with global best practices.
“The Seabury team will [be] looking at all our commercial business and benchmarking with the industry,” Ngunze was quoted by "Kenya's Star" newspaper. “They will then give recommendations based on that audit. They will highlight the areas where there is scope for improvement.”
An undisclosed group of global financial firms have also been enlisted to restructure (KEN)’s debt and retire short-term loans said to amount to KES40.7 billion/USD419.29 million.
(KEN)) was last month granted a KES4.2 billion/USD43 million loan from the Kenyan government in addition to an undisclosed amount from fellow shareholder, (KLM) Royal Dutch Airlines, to help it weather its current storm. Over the past 18 months, (KEN) has been hit hard by the Ebola outbreak in West Africa as well as a spate of Al Shabaab terrorist attacks which have targeted local cities and towns.
In addition, strong competition from regional rivals, Ethiopian Airlines (ETH) as well as Emirates (EAD) and Etihad Airways (EHD) has forced (KEN) to scale back its wide body operations with its 777-200ER and 777-300ER fleets to be phased out by year-end. It has also transferred its remaining 787-8s on order from Boeing (TBC) to sale/lease-back agreements.
(KEN) currently operates 48 airplanes to 42 countries, and serves 55 destinations, 77 routes and 159 daily flights.
July 2015: News Item A-1: Kenya Airways (KEN) reported a net loss of -KSh25.74 billion/-$274 million for the 2014 to 2015 financial year ended March 31, deepened from a -KSh3.38 billion net loss in the year-ago period.
(KEN) also announced it has secured a KSh20.4 billion loan from Cairo-based AfrEximbank to avoid complete bankruptcy. AfrEximbank will further advise Kenya Airways (KEN) on raising capital.
(KEN) said the loss was due to increased overhead costs (KSh25 billion), as well fuel costs, the decline in tourist numbers, terrorism in the region, and external factors such as the West African Ebola crises and competition from Gulf carriers that was coupled with an ambitious fleet expansion.
(KEN) booked an unrealized loss of -KShs5.78 billion from its fuel hedging after the slide in the price of crude oil. “We have had turbulent times and this loss is obviously significant. It is, however, important to know that we have made significant investments at a time when the industry generally was going through hard times,” (CEO) Mbuvi Nguze said in several media reports.
Nevertheless, fleet growth was not matched by revenue growth. (KEN) said it completed its fleet renewal program involving the acquisition of 5 long-delayed Boeing 787-8s, 2 777-300ERs and 3 737-800NGs. The loss also includes impairment costs and spares provision of KShs7 billion to 4 777-200s put up for sale and the accelerated depreciation for out-of-service 767-300ERs.
News Item A-2: Kenya Airways (KEN) (CEO) Mbuvi Ngunze has denied reports in the local press which claimed the government was considering selling its 29.8% stake in (KEN) to an undisclosed Middle Eastern carrier. In May, the "Daily Nation" quoted undisclosed company sources as saying Qatar Airways (QTA) and Emirates (EAD) had been approached over their possible acquisition of a stake in (KEN).
However, during a Kenyan parliamentary inquest last week, Ngunze dismissed the reports as purely speculative. “We have seen speculations in the media of planned changes in (KEN)’s shareholding," he was quoted by "Business Daily Africa." "That is just speculation. There is no change of shares. The government holds 29% of shares, (KLM) Royal Dutch Airlines has 26%, while the rest belongs to other shareholders.”
Faced with rising costs and a slump in demand, both regionally and domestically, Kenya Airways (KEN) has requested and received a KES4.2 billion/ USD43 million bridging loan from the government with (KLM) also contributing an undisclosed amount. (KEN), said to be finalizing a USD200 million long-term financing facility, is in talks with financiers to restructure its debt and retire short-term loans valued at KES40.7 billion/USD419.29 million.
Airline turnaround specialist, Seabury Consulting has also been enlisted to help with overhaul and improve (KEN)'s operations.
August 2015: Kenya Airways (KEN) has brought in aircraft-remarketing broker, Cabot Aviation (see Air Partner (APN)) to sell 4 of its 777-200ERs.
The 777s (33681, 33682, 33683 and 36124) were all delivered new to (KEN) between 2004 to 2007 and have been used on (KEN)’s scheduled network. They are configured with 28C business and 294Y economy seats, and powered by Rolls Royce (RRC) (Trent 892) engines.
Kenya Airways (KEN) operates a fleet of 46 airplanes, including Boeing 777s, 787s, 737s, Embraer E190s and Embraer E170s. In 2014 to 2015, it completed its fleet renewal program, which involved acquisition of 5 long-delayed Boeing 787-8s, 2 777-300ERs and 3 737-800NGs.
“This tops off an excellent few months for Cabot, in which a number of transactions are nearing completion,” Cabot Aviation (CEO) and Founder, Tony Whitty said. Cabot Aviation was acquired by UK charter broker, Air Partner (APN) in May.
November 2015: News Item A-1: (BOC) Aviation (SIL) has added its first two new Boeing 787-8 to its fleet. Both wide body airplanes have been placed on long-term leases to Kenya Airways (KEN) following the sale and leaseback transaction between the two companies.
737-86N (43408, 5Y-CYE), ex-(N1796B) (GEF) leased, in Skyteam (STM) Alliance colors.
December 2015: (GE) Capital Aviation Services (GECAS) (GEF) took delivery of its 500th Boeing airplane. The Next-Generation 737-800 will be leased to Kenya Airways (KEN) and is the 401st 737 delivered to (GEF).
January 2016: "Kenya Airways (KEN) Reduces its 777 Fleet" by (ATW) Alan Dron, January 14, 2016.
Kenya Airways (KEN) plans to sell 2 of its Boeing 777-200ERs to USA charter operator, Omni Air International (OAE) and has warned of further imminent cuts to its airplane inventory.
(KEN) announced in November 2014 it would be selling its 4 777-200ERs in a fleet rationalization as part of its turnaround strategy. In August 2015, (KEN) unveiled heavy losses and required a major loan to stave off bankruptcy.
The 2 777s going to Oklahoma-based (OAE) were delivered new to Kenya Airways (KEN) between 2004 to 2007 and were used primarily on its long-haul routes to Europe and Asia. The 777s are powered by Rolls-Royce (RRC) (Trent 892)s and have a 2-class configuration of 28C business-class and 294Y economy-class seats.
Kenya Airways (KEN) Group Managing Director & (CEO) Mbuvi Ngunze said, “It has taken a while to find a good home for our 777-200ERs. We are now satisfied with this sale and will make other important announcements on fleet rationalization later this month.”
The two airplanes will depart for the USA within 2 months, with the 1st leaving by the end of January.
February 2016: "Kenya Airways Continues Turnaround Strategy" by (ATW) Kurt Hofmann, February 19, 2016.
Kenya Airways (KEN) has appointed (PJT) Partners as a transaction advisor on its balance sheet restructure and long-term capital refinancing, which is part of its turnaround strategy. “We are at a stage where our turnaround strategy is beginning to gain traction. Over the next 6 to 9 months, we will work with (PJT) Partners and they will be instrumental in assisting (KEN) to secure its future beyond the turnaround,” group Managing Director & (CEO) Mbuvi Ngunze said.
Kenya Airways (KEN) reported a net loss of -KSh25.74 billion/-$274 million for the 2014 to 2015 financial year, deepened from a -KSh3.38 billion net loss in the year-ago period.
Several media outlets have reported that the Kenyan government, which holds a 29.8% stake, has said the carrier requires a capital injection of $500 to $600 million to survive.
(KEN) is also 26.7% owned by Air France (AFA) - (KLM).
Kenya Airways (KEN), a SkyTeam (STM) Alliance member, plans to sell 2 of its Boeing 777-200ERs to USA charter operator Omni Air International (OAE) and has warned of further imminent cuts to its airplane inventory. (ken), the loss-making African carrier announced in November 2014 it would be selling its 4 777-200ERs in a fleet rationalization as part of its turnaround strategy.
Cabot Aviation, a division of Air Partner plc and a leading aircraft remarketing agent, has delivered the first former Kenya Airways (KEN) Boeing 777-200ER to Omni Air International (OAE), a USA based airline providing global passenger (ACMI), wet lease and charter programs. The aircraft was originally delivered to (KEN) in 2007 and was operated by the airline on its scheduled routes, especially long-haul routes to Asia and Europe. The aircraft is powered by Rolls-Royce (RRC) (Trent 892B) engines.
March 2016: Jambojet ((IATA) Code: JX, baed at Nairobi Jomo Kenyatta) (CEO) Willem Hondius said the budget carrier is looking to acquire additional airplanes ahead of the launch of its maiden international flights.
The Dutchman told Shipping & Logistics magazine that the (LCC) was looking at either acquiring new or 2nd-hand airplanes. Though he did not specify their type, Hondius has in the past mentioned using 737-700s to replace its 737-300 fleet.
The Kenya Airways (KEN) subsidiary currently operates 3 737-300s and 2 Dash 8-400s (leased from (DAC) East Africa on flights from Nairobi Jomo Kenyatta to Eldoret, Kisumu, Lamu, Malindi, Mombasa, and Ukunda locally.
According to Hondius, while JamboJet posted a modest +KES57 million/+USD547,000 profit for the first half of its 2015/2016 Financial Year, an increasingly tight domestic market means the (LCC) has now decided to turn its attention abroad. As such, JamboJet plans to serve Entebbe/Kampala, Mogadishu, Juba, and Dar-es-Salaam initially, before expanding further into East and Central Africa.
The exact date for the launch of international operations is unclear given that JamboJet's most recent application for international traffic rights was deferred by the Kenyan Civil Aviation Authority (KCAA).
July 2016: News Item A-1: Kenya Airways (KEN) posted a net loss of -KSh26 billion/-$252 million for the 2015 to 2016 financial year to March 31, virtually identical to last year’s loss of -KSh25.7 billion, which was the largest loss in Kenyan corporate history.
Since then, (KEN) has been engaged in a turnaround process that has involved redundancies and shedding of capacity to both USA and Middle East carriers, as well as the sale of a lucrative slot at London Heathrow (LHR) airport.
Chairman Dennis Awori said that the Kenya Airways Group’s operating loss improved sharply, from -KSh16.3 billion in 2014 to 2015 to KSh4.1 billion. However, a combination of several factors undid that improvement.
The US dollar strengthened “significantly” against the Kenya shilling, resulting in an increase in the foreign exchange loss of -KSh9.7 billion; interest on the Group’s borrowing increased by +KSh2.3 billion; and fuel hedging losses increased amounted to an additional KSh5.1 billion.
The latest accounts noted that the -4.4% decrease in 2015 to 2016 to 14.74 billion (ASK)s was part Kenya Airway (KEN)’s strategy to reduce capacity. Passenger numbers rose +1.2% to 4.23 million, resulting in an improvement of +5% in load factor to 68.3% LF.
(KEN)’s auditors noted in their accounts that the Group’s liabilities exceeded its assets at March 31, 2016; a similar situation existed following the preceding year’s accounts.
Looking to the future, Awori said 1 focus of the turnaround strategy, known as "Operation Pride," would be a series of unspecified capital structure optimization processes that aimed to put (KEN) on a stronger financial footing and provide a stable base for long-term growth.
He added that the Kenyan government and Dutch carrier (KLM), both major shareholders in Kenya Airways (KEN), had indicated their continued strong support for the operational and capital structure optimization processes and intended to remain long-term shareholders.
News Item A-2: Kenya Airways (KEN) is considering debt-to-equity deals as one of the possible solutions to its ongoing financial woes. The revelation comes as the struggling carrier's financial standing worsened after it reported its fourth straight annual loss.
For the year ending March 31, 2016, (KEN) posted a net loss of -USD262 million which it blamed on a strengthening US dollar, increased borrowing costs as well as fuel hedge losses. In all, its state of negative equity has now worsened to USD357 million.
Despite the negative news, "The EastAfrican" newspaper said Treasury Cabinet Secretary, Henry Rotich revealed that private equity investors had shown an interest in investing in (KEN). It is within this context that a debt-to-equity scheme would also be considered, the paper said referencing informed sources.
Currently, (KEN) counts the Kenyan government and (KLM) Royal Dutch Airlines as its largest shareholders with 30% and approximately 27%, respectively. The government has already committed to a KES10 billion/USD98.8 million bridging loan. “The Government of Kenya and (KLM), in their capacity as major investors in Kenya Airways (KEN), have indicated their continued strong support of the company’s operational turnaround and the capital structure optimization process,” (KEN) (CEO) Mbuvi Ngunze said. "They have been closely involved throughout the process and intend to remain major stakeholders in the company over the long term."
As part of its "Operation Pride" turnaround plan launched following the previous year's net loss of -KES25.7 billion/-USD251 million, (KEN) has committed itself to downsizing both its staff and fleet compliments.
With -600 employees set to be laid off, (KEN) has already disposed of its unwanted 777-2U8ER fleet (to Omni Air International ((IATA) Code: OY, based at Tulsa International) (OAE)), while several of its 777-300ERs and 787-8s have been sub-leased to Turkish Airlines (THY) and Oman Air (OMR), respectively.
March 2017: Kenya Airways (KEN) has continued its cost-cutting measures with the sale-and-lease back of 2 Boeing 737-700s.
The remarketing division of Air Partner (APN), the UK-based aviation services group, said March 10 it had arranged the sale of the airplanes to an undisclosed lessor. The 2 airplanes had then been leased back to (KEN) for continued operation. They were originally delivered new to Kenya Airways (KEN) in 2002 and 2003 and are powered by (CFM56-7B26) engines.
(KEN), the East African flag carrier has incurred heavy losses in recent years and has substantially slimmed down its fleet as it seeks to return to profitability.
Air Partner (APN) was appointed as (KEN)’s exclusive airplane remarketing agent in August 2015. It has also been responsible for the sale of 3 777-200ERs to USA-based charter operator Omni Air International (OAE). (KEN) has also leased 3 777-300ERs to Turkish Airlines (THY) and 2 Boeing 787-8s to Oman Air (OMR). Air Partner (APN) is continuing to re-market (KEN)’s 1 remaining 777-200ER, and a new (GE90-115BL) engine.
(KEN) (CEO) & Managing Director Mbuvi Ngunze said this milestone deal is “in line with our ongoing turnaround plan. Air Partner (APN) has found a suitable buyer for the 2 airplanes, from whom (KEN) will lease them for a period of 18 months to ensure seamless operations.”
The 2 737-700s may be scrapped following their final stint in Kenya, Air Partner (APN) Head Re-marketing & (ACMI) Tony Whitty said. “They were built in 2002, so by the time they come back [to the lessor] they will be 17 years old.” Airliners as young as 10 years old have been parted out in recent years, he said.
April 2017: Moscow-based lessor Ilyushin Finance (IFC) has converted a Bombardier Dash 8-Q400 option into a firm order, taking its order to 2 of the type, to be placed with Kenya Airways (KEN) low cost carrier (LCC) subsidiary Jambojet (KQA).
“This agreement for these next generation turboprops signifies a key development in (IFC)’s international leasing business. The demand for high-performance turboprops, such as the Dash 8-Q400, continues to expand,” (IFC) Director General Alexander Rubtsov said.
Jambojet (KQA), which operates Kenyan domestic flights from Nairobi, is expected to take delivery of the 1st leased Dash 8-Q400 aircraft in May and the 2nd aircraft later this year. “The Dash 8-Q400 aircraft’s performance has exceeded our expectations on all fronts,” (KQA) (CEO) Willem Hondius said. “The Dash 8-Q400 turboprop has helped us optimize and expand our operations and is undeniably the backbone of Jambojet (KQA)’s growth strategy.”
The 2 additions will increase the African Q Series fleet to >120 aircraft, including about 70 Dash 8-Q400s.
May 2017: Kenya Airways (KEN) has appointed former (LOT) Polish Airlines head Sebastian Mikosz as Group Managing Director & (CEO), effective June 1. Mikosz replaces incumbent Mbuvi Ngunze, whose departure was announced in November 2016.
Ngunze stayed on while the company searched for a successor and continued to steer what the airline described as “the complex capital optimization program” to try to reduce heavy losses.
(KEN) Chairman Michael Joseph noted Mikosz had twice held the role of President & (CEO) at (LOT), during which he was involved in “an in-depth turnaround of the company leading to it 1st positive results in many years.”
(KEN) has experienced heavy losses in the past 2 years.
Mikosz will be responsible for resurrecting the fortunes of (KEN).
Joseph and the board of directors had warm words for outgoing (CEO) Ngunze. “Mbuvi led (KEN) during an extremely challenging period … ensuring that (KEN) stayed afloat, leading from the front in negotiations with financiers and critical partners, and launching the turnaround, which has achieved key milestones and whose results we are now seeing. Mbuvi will stay on beyond June as advisor to the company until the capital optimization plan is completed, which we expect will be done by end of July at the latest,” he said.
November 2017: Kenya Airways (KEN) ceased flights to Hong Kong, China and Hanoi, Vietnam from October 29, following an evaluation of its Asian network.
The move will allow (KEN) to operate a more efficient schedule to Asia with a daily service on its existing Nairobi to Bangkok to Guangzhou route. “We will continue to serve our customers to Asia through our direct flights to China and Thailand, and are working closely with our partners to cover the Asian continent,” (KEN) Commercial Director Vincent Coste said.
(ETH), the Kenyan flag carrier, is a SkyTeam (STM) alliance member.
The network change allows Kenya Airways to allocate more seats across its African network, which has strong demand outlook and insufficient capacity on certain routes. The decision will help the airline strengthen its focus on Africa.
Kenya Airways said it constantly assesses its network to position its fleet on routes with strong demand.
January 2018: Kenya Airways (KEN) will launch daily Nairobi Jomo Kenyatta to New York (JFK) 787 services on October 28, becoming the 1st airline to offer a nonstop flight between East Africa and the USA.
Kenya Airways Group Managing Director & (CEO) Sebastian Mikosz said the new service “fits within our strategy to attract corporate and high-end tourism traffic from the world to Kenya and Africa.”
East Africa-based Ethiopian Airlines (ETH) operates nonstop flights from the USA east coast on westbound flights returning to Addis Ababa. However, (ETH) is not able to operate eastbound flights to the USA because its Addis Ababa Bole International Airport hub sits at high sea level (7,657 ft above sea level), which reduces engine performance and requires a longer takeoff run, potentially exceeding the amount of available runway.
Kenya Airways (KEN) will operate a Boeing 787-8 to New York (JFK) with a total capacity of 234 passengers and 16 crew members.
(KEN) said in November 2017 that it constantly assesses its network to position its fleet on routes with strong demand. (KEN) ceased flights to Hong Kong, China and Hanoi, Vietnam from October 29, 2017, following an evaluation of its Asian network.
February 2018: Airinmar was selected by Kenya Airways (KEN) to assist in enhancing its supply chain management and performance, and maximizing new aircraft warranty entitlement recovery.
March 2018: Kenya Airways (KEN) is weighing the possibility of acquiring 4 Boeing 737 MAX narrow bodies to operate on smaller international markets. (CEO) Sebastian Mikosz said that 2 737-700s, which were in a sale-and-lease back deal in 2017, will leave (KEN)’s fleet in 2018 and (KEN) is looking to replace those and expand. (KEN), a SkyTeam (STM) alliance member, operates a fleet of 8 Boeing 737-800s, the 2 737-700s, 2 737-300Fs, 7 Boeing 787-8s and 15 Embraer E170/E190s.
April 2018: Kenya Airways (KEN) is adding capacity as it prepares to take back 2 Boeing 787-8s and 3 777-300ERs as their leases expire over the next 2 years.
The 787-8s that were on a 3-year wet lease arrangement with Oman Air (OMR) will return in 2019 and the 777s that were leased to Turkish Airlines (THY) will return in 2019/2020.
(CEO) Sebastian Mikosz said (KEN), which leased out the airplanes as part of its restructuring plan, is not sure what to do with the 3 larger 777-300ERs, when their leases expire. “This creates a big question mark of what to do with them (what is the most optimal solution for these airplanes,” Mikosz said. He said there is an oversupply of 777s in the global market. “And I don’t believe we can find an airline that pays the good lease rates. So we may be able to use those for ourselves.”
(KEN) operates in a very competitive environment; however, Mikosz said its financial restructuring plan has paid off significantly. “But it has not ended the process of healing (KEN),” he said. “We must continue to fix revenue and cost issues, among many other necessary measures.”
(KEN) will launch daily Nairobi Jomo Kenyatta to New York (JFK) services on October 28, 2018. “The launch of our 1st route to the USA New York (JFK) is the 1st element of change. It’s a very nice moment because it’s an element of growth.”
June 2018: News Item A-1: Air Mauritius (MAU) eyes alliance with Kenya Airways (KEN), and South African Airways (SAA).
News Item A-2: State-run national flag carrier Kenya Airways (KEN) plans to merge with Nairobi Jomo Kenyatta International Airport (JKIA) to compete with other state-owned carriers in Africa and the Middle East, such as Ethiopian Airlines (ETH) and Emirates Airline.
“The deal should be completed by the end of the year, which is gaining an instrument against competition,” said (KEN) (CEO) Sebastian Mikosz.
The 2 state-controlled companies are being brought together under 1 holding. “This move will help us grow our Nairobi hub,” Mikosz said.
(JKIA), which is managed by state-owned Kenya Airports Authority (KAA), will be owned and managed by a holding company that will be 100% owned by Kenya Airways (KEN). (JKIA) employees will be taken over by the holding company.
Mikosz said the holding is expected to bring efficient operations between the (JKIA) and (KEN), including controlling aviation-related businesses such as ground handling, fuel distribution, catering and slot coordination.
Ethiopian Airlines (ETH) uses a similar model at its hub at Addis Ababa Bole International Airport.
SkyTeam (STM) Alliance member Kenya Airways (KEN) operates in a very competitive environment. However, Mikosz said its financial restructuring plan has paid off significantly. “But it has not ended the process of healing (KEN),” he said. “We must continue to fix revenue and cost issues, among many other necessary measures.”
(KEN)’s ownership now comprises 48.9% by the government, 38.1% by local banks, 7.8% by (KLM) and 5.2% by other shareholders. According to the (KAA), (JKIA) handles >40 passenger and 25 cargo airlines.
News Item A-3: Kenya Airways (KEN) is evaluating an order of up to 20 Bombardier CSeries or Embraer E2 regional jets. A decision will be made by the end of this year, (CEO) Sebastian Mikosz said on the sidelines of this month’s (IATA) (AGM) in Sydney.
“We are talking about 20 aircraft on top of what we have,” he said.
Mikosz said one advantage is that Egyptian flag carrier EgyptAir (EGP) has ordered 12 CS300s and he expects Ethiopian Airlines (ETH), as well as a Tanzania-based carrier, will order the CSeries as well. “This would make sense in terms of our maintenance capacity,” Mikosz said.
(KEN) as a SkyTeam (STM) member is also evaluating a Boeing 737 MAX order.
(KEN) operates a fleet of 8 Boeing 737-800s, 2 737-700s, 2 737-300Fs, 7 787-8s and 15 Embraer E190s.
Separately, (KEN) is expanding its network to Europe and Asia when (KEN) adds 5 wide body airplanes in the next 18 months. Mikosz did not reveal the new destinations, but said they would be announced “sometime after the summer.”
(KEN) is adding the additional capacity as it prepares 20 take back 2 Boeing 787-8s and 3 777-300ERs when the leases expire.
The 787-8s, which were on a 3-year wet lease arrangement with Oman Air (OMR), will return in 2019 to support New York flights. (KEN) plans to launch daily Nairobi Jomo Kenyatta to New York (JFK) services on October 28.
3 777s that were leased to Turkish Airlines (THY) will return in 2019 to 1920. “These we will put in our network [to] manage capacity growth,” he said.
Mikosz said (KEN) will establish 30 to 60 new pilot (FC) positions for long-haul fleet expansion. The pilots (FC) will use common type ratings for both the 777 and 787. However, 2 types of long-haul airplanes should be reduced to one type in the future. “This could be a single 787 fleet, which is a natural choice. But we are also eyeing the Airbus A350, which is a good product,” Mikosz said.
Click below for photos:
KEN-747-400F - 2012-02
KEN-777-300ER - 2015-06.jpg
KEN-787-8 - 2017-10.jpg
KEN-787-8 Magical Kenya 2017-11.jpg
KEN-EMB-190 - 2012-10
KEN-EMB-190AR - 2012-01
1 707-330B (JT3D-3B) (454-18927, /78 ), EX-(DLH), LEASED TO (AFX).
0 707-351B (JT3D-3) (690-19633, 5Y-BBJ).
0 737-229C (JT8D-15A) (401-20915, /75 5Y-KQN), EX-(EUL) 2003-03. 12F, 89Y.
0 737-248 (JT8D-9A) (565-21714, /79 5Y-KQJ; 579-21715, /79 5Y-KQK), EX-(ARL) & (BOM), MAINTAINED BY (ASW), (ECC) LEASED 1998-03, 12F, 89Y.
3 737-300 (CFM56-3C1), (KEN) LEASED FOR JAMBOJET.COM LAUNCH 2014-04. - - SEE ATTACHED - - "KEN-2014-04-JAMBOJET LAUNCH."
2 737-3U8F (CFM56-3C1) (2863-28746, /97 5Y-KQA; 2884-28747 /97 5Y-KQB; 3034-29088, /98 5Y-KQC; 3095-29750, /99 5Y-KQD), 28746 WET-LEASED TO (PRT) 2004-04. 29088; SENT TO BOEING SHANGHAI AIRCRAFT SERVICES FOR CONVERSION TO FREIGHTER 2013-03. FREIGHTER.
0 737-33A (CFM56-3) (1739-24096, /89 5Y-RAB), EX-(TOU), (AWW) LEASED 2002-01, RETURNED, LEASED TO (ASW).
0 737-76N (CFM56-7B24) (877-30133, /01 5Y-KQE; 1145-30136, /02 5Y-KQF), (GEF) 7 YEAR LEASED 2001-07. 2 RETURNED. WINGLETS. 16F, 100Y.
2 737-7U8 (CFM56-7B24) (1242-32371, /02 5Y-KQG; 1327-32372, /03 5Y-KQH). WINGLETS. 16F, 100Y.
2 737-8AL (CFM56-7B) (2079-35069, /06 5Y-KYA, 2006-10 - SEE PHOTO, W/O & DESTROYED IN CRASH 2007-05; 2115-35070, /06 5Y-KYB, 2006-12; 2138-35071, /06 5Y-KYC, 2006-12), (SIL) LEASED.
1 737-8Q8 (CFM56-7B) (35286, 5Y-KYE), (ILF) LEASED.
2 737-86N (CFM56-7B) (2690-35632, 5Y-KYD, 8/08; 2803-35637, 5Y-KYF, 2009-02), (ILF) 8 YEAR LEASED.
1 737-86N (CFM56-7B) (43408, 5Y-CYE), EX-(N1796B), (GEF) LEASED 2015-11. IN SKYTEAM (STM) ALLIANCE COLORS.
2 737-800 (CFM56-7).
1 747-412BCF (PW4056) (791-24066, /90 PH-MPS), (MTH) WET-LEASED 2011-11 - - SEE PHOTO - - "KEN-747-400F - 2012-02." FREIGHTER:
0 767-300ER, (KLM) WET-LEASED 2000-02, RETURNED 2000-07.
0 767-3P6ER (CF6-80C2B4F) (260-24484, /89 5Y-KQR), (PEB) LEASED 2004-05. RETURNED. 25C, 196Y.
0 767-3Y0ER (CF6-80C2B4F) (487-26206; /93 5Y-KQV; 503-26207, /93 5Y-KQW), EX-(IBE), (GEF) 3 YEAR LEASED 2001-12. 26206; & 26207; RETURNED 2005-06, LEASED TO (ACN). 20C, 196Y.
0 767-319ER (CF6-80C2) (30586, 5Y-KYW), (GEF) LEASED 2010-08, EX-(G-CEOD). 20C, 196Y.
0 767-36NER (CF6-80C2B7F) (841-30841, /01 5Y-KQY; 837-30853, /01 5Y-KQZ; 834-30854, /01 5Y-KQX), (GEF) 7 YEAR LEASED 2001-07, 20C, 196Y.
0 767-33AER (PW4056) (591-27909, /95 VH-NOA), EX-(LAL), RETURNED (AWW) 2001-07, 25C, 196Y.
0 767-33AER (PW4056) (27310, 5Y-KQQ), RETURNED (AWW) 2010-06. RE-REGISTERED (N310AN).
0 767-38E (328-24797, 5Y-KQP), (TBC) LEASED 2005-05.
0 777-2U8ER (TRENT 892) (479-33681, /04 5Y-KQU; 514-33682, /05 5Y-KQT, 2005-04; 522-33683, /05 5Y-KQS; 614-36124, 5Y-KYZ; 2007-02). 1 OPTION. 2 SOLD TO OMNI AIR INTERNATIONAL (OAE) 2016-01. 28C, 294Y.
3 777-38UER (GE90-115B) (42097, 5Y-KZX, 2014-07), (GEF) LEASED, SOME SUB-LEASED TO TURKISH AIRLINES (THY) IN 2016. WILL RETURN IN 2019/2020. 28PY, 372Y.
6 +3/4 ORDERS 787-8U8 DREAMLINER (GEnx-1B) (157-35510, /14 5Y-KZA "THE GREAT RIFT VALLEY" - - SEE PHOTO - - "KEN-787-8-2014-04" AND VIDEO, 36040, 5Y-KZC, 2014-07; 36041, 5Y-KZD, 2014-08; 36042, 5Y-KZE "SERENGETI PLAINS"), SOME SUB-LEASED TO OMNI AIR INTERNATIONAL (OAE). 270 PAX.
2 787-8 DREAMLINER (GEnx-1B), (BOC) AVIATION (SIL) LEASED TO (KEN) 2015-11. TO SEND BACK WHEN LEASES EXPIRE.
0 DC-9-32 (612-47478, 5Y-BBR), (MIL) LEASED 2000-09. RETURNED.
0 MD-11F, (KLM) WET-LEASED 2009-06. RETURNED FREIGHTER.
0 A310-304 (CF6-80C2A2) (426, 5Y-BEN; 519, /89 5Y-BFT "UHURU STAR"), (ILF) LEASED 2001-06, 416 SOLD TO (GEF). 426; RETURNED. 519 RETURNED 2002-01, LEASED TO (AIN). 18C, 187Y.
0 A310-304 (CF6-80C2) (485, /88 5Y-KQL), (CDF) 3 YEAR LEASED 1999-03, RETURNED 2002-03. 18C, 187Y.
0 A310-308 (CF6-80C2) (600), EX-(EAD), RETURNED (AIFS) 2001-07.
0 A310-324 (542, EC-HFB), (APZ) LEASED 2000-01. RETURNED.
1 AN-12F TURBOPROP LEASED 1999-06 FOR REGIONAL FREIGHT WITH (MTH).
2 +2 ORDERS SAAB 340B (CT7-9B) (163, /89 5Y-KFA; 171 /89 5Y-KFB) EX-TATRA AIR, LEASED FOR KENYA FLAMINGO OPERATIONS. 35Y.
0 EMBRAER E170LR (CF34-8E5) (00111, /05 5Y-KYK; 00128, /06 5Y-KYJ; 00230, /06 5Y-KYH), (GEF) LEASED 2007-08. RETURNED. 72Y.
0 EMBRAER E170 (CF34-8E5) (00141, /06 57-KYG; 00146, /06 5Y-KYL), (FIN) 4 YEAR LEASED 2010-06. RETURNED 72Y.
2 EMBRAER E190AR (CF34-10E6) (00398, /10-5Y-KYP; 00440, 5Y-KYQ, 2011-05), JETSCAPE LEASED, 12C, 84Y.
3 EMBRAER E190AR (CF34-10E6) (00478, 5Y-KYS, 2011-09), (ALE) 8 YEAR LEASED, EX-(PT-TPA). 12C, 84Y.
10 +15 OPTIONS EMBRAER E190-100AR (CF34-10E6) (00577, 5Y-FFC, 2012-10), EX-(PT-TGD). 12C, 84Y.
Click below for photos:
KEN-1-EVANSON MWANIKI - 2012-01
KEN-1-Sebastian Mikosz - 2017-05.jpg
KEN-4-CAPTAIN PAUL MWANGI - 2012-01
KEN-5-ALEX WAINAINA MBUGUA - 2012-01
KEN-6-MOHAN CHANDRA - 2012-01
KEN-7-YVES GUIBERT - 2012-01
KEN-8-ALBAN MWENDAR - 2012-01
KEN-9-KEVIN KINYANJUI - 2012-01
MICHAEL JOSEPH, CHAIRMAN.
EVANSON MWANIKI, NON EXECUTIVE CHAIRMAN.
Mr Mwaniki holds a Bachelor of Arts (Hons) from the University of London. He was the General Manager for Shell and BP between June 1989 and December 1994. Over this period, M Mwaniki's notable achievements included turning around the company from a loss position in 1989 to profitability. He also led the oil industry negotiations with the Government on liberalization of the oil industry, leading to actual decontrol in October 1994 and prepared Kenya Shell & BP Kenya (including restructuring the organization) for effective marketing in the new (liberalized) business environment. Mr Mwaniki has represented the oil industry in various influential forums. These include the Federation of Kenya Employers and the East Africa Association. Mr Mwaniki currently sits on the boards of various companies, including British American Tobacco Kenya (Non-Executive Chairman), East African Breweries Ltd, East African Packaging Industries Ltd and Lion of Kenya Insurance Company Ltd.
SEBASTIAN MIKOSZ, GROUP MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER (CEO) (2017-05).
MBUVI NGUNZE, MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER (CEO) (2014-12), BECAME ADVISOR TO THE COMPANY ON THE APPOINTMENT OF NEW (CEO) SEBASTIAN MIKOSZ (2017-05) UNTIL JULY 2017-07.
Mbuvi Ngunze who was Chief Operating Officer (COO) since (2011-09), succeeded Titus Naikuni after his retirement at the end of November 2014.
Mbuvi Ngunze holds a Bachelor of Commerce degree accounting option from the University of Nairobi. He is a Chartered Accountant (England & Wales) and is also a graduate of the Harvard Business School’s Management Development Program (PMD75). He joined Price Waterhouse in Nairobi in 1990 and was seconded to Manchester in the United Kingdom where he was articled. In the UK, he started of as an Audit Assistant and left 5 years later as an Assistant Manager. In 1995, he rejoined Price Waterhouse in Kenya as Audit Manager, leading audits of various blue chip companies, and was also involved in training and recruitment. In 1998, he joined Bamburi Cement (a Lafarge subsidiary) as Finance Manager and was promoted to the Finance Director’s position in February 1999. He held this position up to March 2002 when he was appointed Managing Director Hima Cement Uganda (Lafarge). In May 2006, he moved to the headquarters of Lafarge in Paris. He 1st took up the role of Mission Director in the Group Audit Department for 6 months, and then was appointed Group Vice President Internal Communications in November 2006. In March 2009, he was appointed General Manager for Lafarge’s operations in Tanzania (Mbeya Cement).
He joined Kenya Airways (KEN) in September 2011 as Chief Operating Officer (COO). Mbuvi has extensive Board room experience having served on the Board of Bamburi Cement (from 1999), Hima Cement, Mbeya Cement, and serving as Secretary to the East African Cement Producers Association.
WILLEM ALEXANDER HONDIUS, (CEO) OF JAMBO JET, (KEN)'S NEW LOW COST CARRIER (LCC) SUBSIDIARY, EX-(KLM) (2013-09).
Willem is a former (KLM) Royal Dutch Airlines General Manager for Eastern Africa and Project Manager for Jambo Jet. Between 2005 and 2012, he was Executive VP & (CCO) of Transavia Airlines (TAV), a wholly owned subsidiary of (KLM).
Jambo Jet will lease 3 737-300s from (KEN)’s mainline fleet, initially serving domestic destinations including Eldoret, Kisumu and Mombasa before later branching out into East African regional services.
ALEX WAINANA MBUGUA, GROUP FINANCE DIRECTOR (2008-07).
Alex Wainana Mbugua was appointed Group Finance Director on 14th July 2008. He is an (MBA) graduate with specialization in Corporate Finance & Investment Banking; a Certified Public Secretary; Certified Public Accountant; and a member of the Institute of Certified Public Accountants of Kenya. He has previously held several board positions at AngloGold Holding (UK, RSA and 5 African Countries); Bain Hogg and Norfolk Holdings (K) Ltd. With regard to his professional experience, Mr Mbugua has since 2003, been the Chief Finance Officer (CFO), Africa Open Mines, AngloGold Ashanti, South Africa. His other previous roles include Chief Executive Officer (CEO), Combined Systems Group, Africa Division PWC, Johannesburg (2000 -2003); Finance & Administration Director, Bain Hogg Insurance Brokers, Kenya (1997 -1999); (CFO), Express Kenya (1992 – 1997); Financial Consultant, International Air Transport Association (IATA) (1990 -1991) and Audit Consultant, (KPMG), Kenya (1985 – 1989).
VINCENT COSTE, COMMERCIAL DIRECTOR.
YVES GILBERT, DIRECTOR GROUND SERVICES.
Mr Guibert holds a Bachelor of Science in Computer & Mathematics, and a degree in Business & Administration from the Paris Sorbonne University. Between 1989 and 1995, Mr Guibert worked for Air France (AFA) as an Assistant Station Manager and would replace any Airport Manager during their absence due to his excellent adaptability and interpersonal skills to adapt to numerous airports set ups and various cultures. Between 1998 and 2001, he worked as the Station Manager in Johannesburg, where he achieved many great things among them being to open South Africa for Virgin Atlantic Airways (VAA) and managed the operation. In 2001, he was promoted to an Airport Manager (West Africa) where he motivated a team and a territory unexposed to (VAA). In 2005 to 2006, he was the Head of Ground Services and was the part of a senior management team. He was Director of Customer Services from 2006 until his appointment as Kenya Airways (KEN) Ground Service Director.
ALBAN MWENDAR, GROUP HUMAN RESOURCES (HR) DIRECTOR (2011-08).
Mr Mwendar is an alumnus of the Alliance High School, and holds a Bachelor of Education (B Ed) degree and a Masters in Business Administration (MBA) degree, both attained at the University of Nairobi. He is also a Fellow Member of the Institute of Human Resources Management of Kenya. Mr Mwendar has extensive experience within multinational businesses in the corporate sector having joined Unilever (K) Ltd in 1987 as a Management Trainee, and rising up the ranks within the (HR) function and in Logistics. He left Unilever in 1995 to take up the role of Head of Human Resources (HR) at British American Tobacco (K) Ltd, a role he held until the year 2000 when he was appointed Group (HR) Director at Kenya Commercial Bank (KCB). At (KCB) he spearheaded cultural reform programs and internal branding initiatives that turned the bank from a parastatal organization to the present day commercial organization that prides itself with the largest branch network in East & Central Africa. In 2004, Mr Mwendar was appointed Group (HR) Director of East African Breweries Ltd, a Diageo plc subsidiary, and again led internal re-branding initiatives that launched Diageo into the Eastern African markets. During the course of his career, Mr Mwendar has played a consultancy and advisory role on (HR) matters to numerous individuals and organizations and has made several presentations to (HR) practitioners in the region. He has also attended numerous professional courses abroad including in institutions such as Harvard Law School. He has been a past Vice Chairman of the Kenya Institute of Bankers, a member of the Board of Governors of Alliance High School, and Assistant Chairman, Institute of (HR) Management of Kenya. He currently sits on the Council of the Agricultural Society of Kenya. He joined Kenya Airways (KEN) in August 2011.
KEVIN KINYANJUI, INFORMATION SYSTEMS (IS) DIRECTOR (2004-02).
Mr Kinyanjui aged 43 years has over 23 years experience in the Information Technology (IT) field. This includes 6 years at the management consulting firm, Price Waterhouse, 6 years at Bamburi Cement Ltd and a total of 4 years in the banking sector. As an (IT) management consultant, he carried out numerous management consultancy assignments in the finance, hospitality, manufacturing and service industries in both private and public sector organizations. These organizations were spread out beyond Kenya and in other African countries including Uganda, Tanzania, Malawi, and Ethiopia. As Group (IS) Manager at Bamburi Cement for all group companies in Kenya and Uganda he was instrumental in strategy formulation, shifting the group to an end user computing environment and integrated (ERP) systems and putting in place a complete (IT) organization. Mr Kinyanjui was the first (IT) Director at Housing Finance, where he oversaw similar planning and implementation activities for banking business systems. This included the evaluation and selection of a completely new banking system platform. In 2001, the Computer Society of Kenya awarded him the Chairman’s Achievement Award in recognition of his achievements in the (IT) field. He has attended many technical (IT) and management courses both locally and abroad. Mr Kinyanjui joined Kenya Airways (KEN) in February 2004.
CATHERINE MWANGI, DIRECTOR CORPORATE COMMUNICATION.
JASON KAP-KIRWOK, DIRECTOR STRATEGY & INDUSTRY AFFAIRS.
STEVE CLARKE, TECHNICAL DIRECTOR, (HDQDEKQ)
HEZEKIEL OBONYO, MANAGER TECHNICAL SERVICES.
SAMUEL MBURU MUCHAI, HEAD ENGINEERING QUALITY.
JIMMY KIBATI, HEAD NETWORK PLANNING & AIRLINE STRATEGY.
JOHN OMWAKWE, MANAGER QUALITY ASSURANCE (QA).
NGENY BIWOTT, MANAGER AIR SAFETY (NBOESKQ),
D KARIMI, 757 FLEET MANAGER & LINE MAINTENANCE.
NAFTALLY MWANGI, HEAD TECHNICAL SUPPORT.
MS BUSI MOTLHASEDI, MARKETING & PUBLIC RELATIONS (PR) MANAGER FOR SOUTHERN AFRICA (2011-10).
ARUN PATEL, HEAD AIRCRAFT PRODUCTION.
KAMAU MBOGOH, MANAGER PROPULSION SYSTEMS.
DAVID OOKO, MANAGER OPERATIONS CONTROL.