Kenya Airways: The Staggering Cost of Becoming Number 1 in Africa

Kenya Airways: The Staggering Cost of Becoming Number 1 in Africa

Carrier Needs over $2 billion to become airline of choice in Africa

Details have emerged about the potential cost of Kenya Airways’ drive to become the number one airline of choice in Africa, connecting the continent’s various destinations via their Nairobi hub.

 Only recently did ‘The Pride of Africa’ sign a record breaking deal of 10 firm orders and 16 options with Brazilian manufacturer Embraer, which, should all options to turn into firm orders as, will double the size of the carrier’s current fleet. Also, when Boeing delivers nine 787 aircraft on firm order, it will allow KQ to add more long haul destinations such as flights to the US, India and the emerging tourism markets in the Far East and the South East.

The cost however is mindboggling with figures ranging from 2+ billion US Dollars upwards, according to sources in Kenya. The forthcoming share rights issue by Kenya Airways is expected to create a core fund to finance this growth, but borrowing and retaining profits at the expense of higher dividends will be other avenue the airline will have to use to be able to pay for the ambitious expansion plans.

At the same time there is intensive lobbying going on to have government boost aviation infrastructure at the country’s main airport in Nairobi, where a second runway is a must to roll out the fleet expansion, while more terminal space and parking spaces for aircraft too are required in order to handle the added passenger and aircraft load. Delays by past KAA management are now coming home to roost as capacity constraints are not only hampering Kenya Airways’ growth plans, but also prevent more airlines from flying to Nairobi or just boosting the number of the existing flights.

 Post courtesy Wolfganghthome blog
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Kenya Airports Authority Lying to the Public over Vandalism Claims

Kenya Airports Authority Lying to the Public over Vandalism Claims

The Kenya Airport Authority only managed to pour more fuel into the fire of discontent over their dismal performance of late, when their Managing Director yesterday blamed vandals for the power outages.

Incompetent? Eng. Stephen Gichuki, Kenya Airports Authority Managing Director

‘The man is not only incompetent, and his staff responsible are incompetent too, now they are also lying to us. How can they blame vandalism of cables in a secured area. Has anyone heard of intrusion into the airport perimeter, cutting of fences or climbing them? Had police got any evidence that there was in fact vandalism or that the power substation was broken into? Has KAA filed a case with police? That cable is underground so who can access it from above? And if anyone intruded into the secure area, what does that mean for KAA’s security measures in place? This is pure hogwash and they know it. They are trying to absolve themselves from blame and by lying make it worse. They must resign or be fired for negligence and incompetence. And no, you cannot use my name because these people are very vindictive and can cause our airline a lot of problems’ said a regular source to this correspondent yesterday evening when discussing KAA’s latest attempt to shift blame from themselves to ‘others’ who remain unnamed.

Airlines are demanding huge compensation from KAA for flight diversions and the resulting costs of passengers missing flights and having to be accommodated, the extra fuel to reach diversion airports and related cost caused by a string of recent power outages at East Africa’s most important international aviation gateway. Meanwhile is a crippling electricity deficit of up to 200 MW causing power rationing across Kenya, following suit to Tanzania’s perennial power shortages and of late similar problems in Uganda, leaving businesses, in particular the hotel industry and manufacturing reeling from the added cost of doing business by using in house generators which at present prices of diesel and petrol are eating deep into their bottom line.

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Kenya's Phoenix Aviation introduces MD-83s for North Africa and the Middle East

Kenya's Phoenix Aviation introduces MD-83s for North Africa and the Middle East

Kenyan operator Phoenix Aviation is introducing an MD-83 which will suit North African and Middle East charter requirements. The aircraft has just returned from South Africa where its interior was completely refurbished. It is now based in Nairobi and is available for charter enquiries.

The versatile EASA compliant aircraft is configured for up to 170 passengers in an economy class configuration and can be converted quickly to mixed business and economy class with 12 business class seats and 146 economy. With a range of 2540nms, self-start capability, forward integral and ventral airstairs, Phoenix says the MD-83 provides a reliable self-contained solution to the region’s transportation requirements

The MD83 has a flying duration of 7 hours and as a European compliant aircraft, in terms of equipment, can operate into and out of Europe with ease. It is available from home base Nairobi or globally for ad hoc charter and short or medium term wet lease (ACMI: Aircraft, Crew, Maintenance and Insurance). The self-start capability and integral airstairs make this aircraft a versatile solution for passenger transport requirements to airports lacking extensive ground support equipment (GSE).