Kenya Airways inked a deal with airplane manufacturer Boeing, in a move that will help the airline improve servicing of its fleet.
The deal is part of the agreements that President Kenyatta led government and the business community to sign during his trip to White House.
Kenya Airways Group Managing Director and Chief Executive Officer Sebastian Mikosz said the deal worth $5 million will be for five years. He commented on the sidelines of the companies half year results.
Under the agreement, Boeing which last year opened a new office in Nairobi, will store the spare parts locally and avail them to Kenya Airways when needed. This will enable the airline to only pay when the spare parts are needed, unlike when they would have to be flown from Seattle, Boeing’s Headquarters.
KQ operates a fleet size of 40 planes including nine Boeing 787-8 Dreamliners, nine Boeing 787 Dreamliners, and three Boeing 777-300 among others.
At the half year results, Sebastian Mikosz said they intend on getting back the five leased airlines to help in increasing revenues. Revenues increased by 3.1 percent due to increased passenger traffic to sh52 billion. During the half year, 2.3 million passengers were ferried.
In the five airlines, two were leased to Oman Air while three to Turkish Airlines. Oman Air is expected to surrender one of the Boeings in its possession at the end of September in readiness for network expansion for the New York flights and the remaining in April 2019.
The three 777-300ERs being used by Turkish airlines will be surrendered in October 2019 and May 2020 as per the contract.
KQ flies to over 45 destinations around the world and is likely to add three more next year.