Kenya Airways Unveils 5-Year Plan to Acquire 13 New Aircraft and Retire Embraer Fleet

Aiming to cut operating costs and boost efficiency with an all-Boeing fleet.

Kenya’s national carrier, Kenya Airways, has announced plans to acquire 13 new aircraft to expand its existing fleet, according to Tuko Media. The airline’s current fleet includes Boeing 787-8 Dreamliners, Boeing 737-800s, and Embraer E190s, which will expand to over 55 planes within the next five years.

As early as the 2000s, Kenya Airways introduced the Embraer E170 model and later upgraded to the more advanced E190, which accommodates 96 passengers. With a fuel consumption of about 1.6 tonnes on flights to Mombasa, the E190 has proven effective for shorter domestic and regional routes, thanks to its slightly improved baggage capacity compared to the E170.

However, the airline is now transitioning to an all-Boeing fleet to achieve fleet commonality, enabling the airline to streamline operations and reduce costs. This shift will optimize spare parts utilization and significantly lower pilot training expenses.

“Currently, we have a total of 42 aircraft, including those operated by Jambojet. As Jambojet grows and we continue our expansion, we estimate that we will have a combined fleet of around 65 planes within the next five years”, according to Kilavuka.

Kenya Airways reports that it spends up to KSh 1 billion (approximately $7.8 million) annually on cross-training pilots to operate different aircraft types, requiring additional certification and specialized training for each model. This increases costs due to the need for extra simulator time, classroom sessions, and instructor fees. By transitioning to a single aircraft manufacturer, the airline aims to streamline pilot training, making it more cost-effective and significantly reducing these expenses.

Kilavuka also emphasized that expanding the airline’s fleet and its plans to serve additional destinations will increase passenger numbers. He stated that expanding to more destinations will naturally attract more passengers, making it essential and urgent to address airport infrastructure promptly. He highlighted that time is of the essence.

Kenya Airways Fleet Portfolio

• Boeing 787-8 Dreamliner: A long-haul, wide-body, twin-engine aircraft primarily designed for international flights, offering superior passenger comfort and advanced technology. Kenya Airways operates a fleet of nine Dreamliners.
• Boeing 737-800: A narrow-body, short- to medium-haul commercial aircraft optimized for regional routes, providing flexibility and efficiency. Kenya Airways has eight of these aircraft in active service.
• Boeing 737-300F: This freighter version of the Boeing 737-300 is specifically engineered for cargo operations, enabling transporting goods and freight. Kenya Airways operates two of these freighter aircraft to support its cargo services.
• Embraer E190: A narrow-body, twin-engine jet manufactured by the Brazilian company Embraer, the E190 is renowned for its operational efficiency on short-haul flights, providing a comfortable experience for passengers. Kenya Airways has 13 aircraft in its fleet, which are scheduled for retirement as part of its new strategic plan.

He clarified that while Kenya Airways is not directly involved in the ongoing airport management negotiations, it remains the airport’s largest shareholder and primary operator. Kilavuka emphasized that any operational model implemented must not increase Kenya Airways’ operational costs, as this could jeopardize shareholder interests and undermine the airline’s competitiveness.

He noted, “We’ll be competing with other airlines with lower operating costs, so the model used must not increase our cost of operations. Otherwise, it will make us unviable.”

Strategy for Diversification and Growth

Kenya Airways is strategically diversifying its business portfolio to enhance the resilience of Kenya’s aviation supply chain. This approach aims to establish greater control over critical infrastructure, ensuring more reliable operations. In doing so, the airline seeks to reduce the financial burden associated with operational disruptions, ultimately strengthening its market position and contributing to the overall stability of Kenya’s aviation sector.

“We incur a lot of costs due to flight disruptions, which often result in booking passengers into hotels. This significantly impacts our bottom line. Many of our competitors operate in regions with better infrastructure, including nearby hotels, which reduces their costs,” Kilavuka noted.

To address this, KQ has plans to collaborate with hotel operators or potentially develop its own hospitality facilities in the future. Additionally, Kenya Airways intends to expand its presence in the aviation support services sector.

The airline is prioritizing the growth of its Maintenance, Repair, and Overhaul (MRO) capabilities, which have gained significant regional recognition for their quality, reliability, and integrated logistics support. By leveraging its expertise, Kenya Airways is positioning itself as a critical player in the African aviation maintenance and logistics industry, offering a comprehensive range of MRO and logistical solutions to enhance its client airlines’ operational efficiency and safety.

Currently, Kenya Airways provides maintenance services to a diverse portfolio of African carriers, including Precision Air, Uganda Airlines, Air Peace, Jubba Airways, Air Tanzania, Jetways, Air Burkina, Mauritania Airways, Skyward Aviation, Fanjet Express, and AMREF Flying Doctors. The airline’s MRO services cover various aircraft needs, from routine inspections and scheduled maintenance to more complex repairs and efficient supply chain logistics.

To deliver these services effectively, Kenya Airways relies on its state-of-the-art MRO facility located at Jomo Kenyatta International Airport (JKIA), which is equipped to handle various aircraft types and is supported by a robust logistics network. The facility’s capabilities include advanced diagnostic equipment, specialized tools, and highly trained personnel who adhere to global safety and quality standards. Additionally, Kenya Airways extends its MRO expertise by deploying specialized teams of engineers and professionals to the countries of client airlines, providing on-site support and ensuring seamless operations with minimal disruptions.

This strategic focus on MRO and logistics expansion not only strengthens Kenya Airways’ position as a leader in aviation maintenance across the continent but also contributes to the overall development of the African aviation supply chain by enhancing safety, reliability, and cost efficiency for regional airlines through integrated maintenance and logistics solutions.

Kilavuka also revealed the airline’s ambition to build an aviation medical centre as part of its efforts to provide comprehensive aviation-related services. Profitability and revenue diversification In recent months, Kenya Airways has recorded an increase in revenue, driven by strategic adjustments, in its latest financial results. In the first half of the year, the airline posted a profit of KSh 513 million (approximately $4 million), marking the first time it has achieved profitability in nearly a decade. This turnaround is a significant milestone for the airline, which has faced considerable financial challenges in recent years.

Additionally, a water bottling plant has been launched at the airport, which will establish a pyro-diesel facility that converts waste plastic into diesel fuel for its ground operations. These initiatives are part of its broader revenue diversification strategy, aimed at reducing its environmental footprint while generating alternative income streams.