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Kenya Airways Eyes Downsizing Its Dreamliner & Embraer Fleets

Kenya Airways Eyes Downsizing Its Dreamliner & Embraer Fleets

Nairobi-based Kenya Airways is eyeing cutting its fleet from 36 planes to 27. The as yet un-confirmed move is part of a broader turnaround strategy that aims to cut costs and rejuvenate the airline. Kenyan media report Kenya Airways’ Boeing 787-8 and Embraer E190-100ARs fleets are set to shrink. Kenya Airways Dreamliner & Embraer fleets set to shrink

Embattled Kenya Airways enlisted the London-based Steer Group to put together a turnaround plan last year. Kenya Airways posted a US$333 million loss in 2020 (2021 numbers are yet to be released), but its financial woes predate COVID-19. The airline has been insolvent for 10 years.

“ Kenya Airways has come up with short, medium, and long-term strategies to help in realizing two main objectives. The first is to survive the current depressed market, and the second is to implement strategies that will make the business more sustainable in the long term," said Kenya Airways CEO Allan Kilavuka last May.

According to Kenya’s Star newspaper, the Steer Group has finished its turnaround plan and during a meeting between the consultancy and airline executives, the prospect of trimming Kenya Airways’ fleet was raised. Notably, if planes go, so will jobs – further reducing costs at the airline. Kenya Airlines Chairman says nothing is yet decided

After substantial job losses already at the airline, the Kenya Airline Pilots Association (KALPA) and the Kenya Aviation Workers Union (KAWU) are not in favor of further job cuts.

“Nothing has been decided,’’ Kenya Airways Chairman Michael Joseph told the newspaper. But sources at that meeting told The Star the airline was eyeing trimming its Boeing 787-8 back to five planes and cutting its Embraer E190 fleet to ten planes. Kenya Airways currently has nine Dreamliners and 15 Embraers – meaning a fleet reduction of nine planes.

In addition to those two aircraft types, Kenya Airways also flies a dozen Boeing 737s, including eight B737-800s, two B737-700s (both parked), and two B737-300(SF)s. There is no move to cull the Boeing 737 fleet. The overall fleet is a mix of 17 owned and 19 leased jets. Nine of the Embraers are owned while six are leased. Six of the Dreamliners are owned while three are leased.

Breaking leases might cause ripples among lessors but isn’t an insurmountable problem. With only three 787-8s leased, one would need to be sold – a tougher ask. Consultancy says they put forward a range of options

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