Kenya Airways Boeing 787-8 Also on ch-aviation
Kenya Airways (KQ, Nairobi Jomo Kenyatta ) expects to save USD45 million this year after changing the lease terms of its aircraft fleet, opting for hourly rates over fixed costs, says Managing Director Allan Kilavuka.
He said the carrier had negotiated a productivity-based payment method with its lessors to avoid fixed costs and to reduce expenses related to fleet management at a time when it has been struggling with low travel demand due to the pandemic. Consequently, it has cut capacity, which has seen a good portion of its fleet underutilised, reports Nairobi’s Business Daily.
Kilavuka said the airline is seeking to reduce fixed costs for both its fleet operations and its employees. “We have been successful on the fleet side because we have been able to move towards hourly pay for all of our lessors by 2021 and that should bring significant cash savings for us estimated at USD45 million,” he said.
Kenya Airways has also saved USD3.1 million after terminating the lease of two B737-700 s, he added. According to ch-aviation …
The Board of Kenya Airways (KQ, Nairobi Jomo Kenyatta ) has urged the country’s National Assembly to fast track the nationalisation of the airline by approving the National Aviation Management Bill, 2020, reports Capital FM in Nairobi.
The Bill is pending despite having been gazetted more than a year ago, on June 15, 2020. Under its terms, the government, which holds a 48.9% stake in Kenya Airways, proposes to fully re-nationalise the flag carrier by creating a National Aviation Council and a holding company, Kenya Aviation Corporation, that will house three subsidiaries: Kenya Airways, the Kenya Airports Authority, and an investment arm, the Aviation Investment Corporation.
Last year, members of parliament halted debate on the bill on the grounds that it needed more public input, delaying initial plans for the nationalisation of the airline by October 2020. As a result , the Nairobi Securities Exchange (NSE) also extended the suspension from trading of Kenya Airways shares for an additional nine months with effect from April 5, 2021.
Capital FM reports Kenya Airways chairman Michael Joseph said…
Ending a month-long feud, Kenya has re-opened its airspace for flights to/from Somalia in what Uhuru Kenyatta’s government has termed a sign of goodwill to boost bilateral relations between the two countries.
“The Government of Kenya has taken due consideration of intercessions made and has decided to re-open Kenya’s airspace to […]