Kenya Insights

Tag: Allan Kilavuka

  • KQ To Acquire 15 New Plans To Boost Revenue

    KQ To Acquire 15 New Plans To Boost Revenue

    Kenya Airways (KQ) has announced plans to boost fleet capacity from the current 42 to 55 aircraft in the next 5 years.

    KQ CEO and Group MD Allan Kilavuka said that the acquisition will boost efficiency, resulting in revenue growth.

    “We plan to increase the number of our aircraft to 55 fleets in the next 5 years from the current fleet that we have of 42 aircraft,” revealed Kilavuka.

    In April 2024, for example, the airline received its second freighter, a Boeing 737-800 Freighter, pushing up the total cargo fleet to four, offering customers and partners more cargo capacity on its global network, especially the Middle East, Asia, and Africa.

    The cargo freighters are also seen as a away to capture opportunities emerging from the African Continental Free Trade Area (AfCFTA) to catalyse trade within the continent and out of Africa.

    “We have made a commitment to gradually increase our cargo business and support our customers in their long-term needs and deliver possibilities in the air. The arrival of the new B738 Freighter, the second one this year, and the fourth in our cargo fleet, is a significant milestone in KQ Cargo’s fleet expansion plans,” stated Kilavuka.

    KQ also hinted plans to grow destinations from the current 48 to over 60 in the next 5 years.

    This comes after KQ recently bounced back to profitability after posting a net profit of Sh513 million in the first half of 2024.

  • KQ Chairman, CEO risk contempt proceedings for defiance of eviction orders

    KQ Chairman, CEO risk contempt proceedings for defiance of eviction orders

    Kenya Airways Chief Executive Officer, Allan Kilavuka and Board Chairman, Michael Joseph now risk facing contempt proceedings for defying court orders preventing the airline agents from causing disturbance and executing evictions orders against  renowned aviation company, 748 Air Services and African Express Airways.

    “Despite service of the orders KQ has refused to grant access to AFEX and the CEO and Chairman are likely to be cited for contempt of court orders if this continues,”says African Express lawyers.

    In a letter dated August 7th 2021, African Express Airways(AFEX) Managing Director, Captain Musa Bulhan has requested Kenya Airports Authority to provide it with new alternative access gate after Kenya Airways blocked them from accessing their offices.

    Captain Bulhan says their workforce have been unable to access AFEX facilities due to an ongoing legal tussle between Kenya Airways and 748 air services over a parcel of land owned by African Airlines International.

    “We are unable to access our premises on L.R. No.9042/584 because KQ has denied us access even after the court order was given,” said Captain Bulhan in the letter.

    On August 5th 2021, AFEX obtained a high court order directing KQ to allow AFEX use the KAA gate at the Airport North Road. AFEX argued that it was not party to the lower court matter filed by Kenya Airways against 748 Air services but the national carrier visited its premises on July 23rd 2021 with its agents to vandalize offices.

    “Pending the delivery of the said ruling, the defendant shall on a temporary basis restore the plaintiff forthwith into L.R. No. 9042/584 and shall ensure that their agents, contractors, employees and workmen vacate and remove themselves from the premises  immediately and unconditionally,” said Justice S. Okong’o in the order.

    The court ordered against any acts of disobedience and non-observance until it makes a ruling on the matter in September, 23rd, 2021. Failure to observe the orders, it said would attract penal consequences.

    “It is on this background that we are requesting JKIA to facilitate an independent gate to enable us access our premises on L.R. No. 9042/584,” said Captain Bulhan.

    African Express Airways has even pleaded with the airport’s authority to allow it pre-finance construction of the independent gate upon approval.

    In another offensive, Kenya Airways has repainted 748 Plaza in continued defiance of court orders.

    “KQ have repainted the building despite court orders issued against them,” said 748 Air Services Managing Director, Moses Mwangi.

    In July 26th, 2021, Chief Magistrate Court granted 748 Air services staying orders, preventing Kenya Airways and its agents from further executing eviction orders.

    This followed a legal suit filed by the airline against Kenya Airways for malicious damage of its property worth millions of shillings and harassment of employees.

    In July 23rd 2021, around 15 armed police and more than 50 men raided 748 plaza along Airport North Road in Embakasi broke the premises entrance glassdoor, broke other doors, removed and extremely damaged office furniture and fittings.

    In an affidavit dated July 26th, 2021, 748 Air Services Managing Director, Moses Mwangi said the raid had disrupted normal operations at the Embakasi office and left the airline with significant losses.

    Following the incident, 748 Air services personnel of over two hundred (200) employees were unable to access the same premises and could not be able to trace important documents, records and machinery.

  • KQ spending Sh500,000 daily on idle planes

    KQ spending Sh500,000 daily on idle planes

    The loss making Kenya Airways is spending about Sh500,000 daily to maintain four planes that are lying idle at the Jomo Kenyatta International Airport (JKIA) due to the ravaging effects Covid-19 pandemic has had on businesses.

    The airline is spending an average of Sh14 million monthly to maintain two Boeing 737s and two Embraers which it parked in efforts to cut down on its routes when the industry resumed international flights in August 2020. The move is a common practice by airlines to reduce costs when business is low.

    “We are spending on average approximately $128,000 (Sh14 million) per month to support the various storage-related maintenance activities… These are direct maintenance costs for the ones that are not in use,” KQ stated.

    Kenya Airways CEO Allan Kilavuka [p/courtesy]
    Data from the International Air Transport Association(IATA) show that Covid-19 effects saw two-thirds of the global airline fleet being grounded in April 2020 and even after travel resumed on key international and regional routes last August, passenger numbers are still low due to public health and safety restrictions.

    The national carrier claims that it has grounded the four planes due to limited capacity on major routes while one of its Boeing 787 Dreamliner planes is out undergoing heavy maintenance commonly referred to as C Checks.

    KQ has a fleet of 36 aircraft, 19 of which it wholly owns while the rest are leased but Embraer is part of its 15 aircraft fleet which are mainly used for routes within Africa which generate most of its revenue and for local routes to Kisumu and Mombasa. Africa still remains it’s largest market with the airline currently operating on 40 international and two domestic routes.

    The airline is under pressure to stabilize its financials after its net loss for the financial year ended December 2020 tripled to Sh36.2 billion and blamed on Covid-19 pandemic which disrupted travel across the globe.

    Kenya Airways further claimed that summer travel bookings in the USA and France improved in the month of June but the rest of Europe, the UK, India but many African destinations are still weak.

    Many European countries including UK have imposed strict travel restrictions on passengers from countries which are still recording high cases of Covid-19 including Kenya which it placed on the red list, a move which has barred all travelers connecting from Nairobi to enter Britain.

    China has also restricted the number of flights that KQ can make in a day while America issued a fresh travel advisory against Kenya. Event the recent visit by President Uhuru Kenyatta to the British Prime Minister Boris Johnson has not helped in lifting Kenya from the red list.

    The number of Covid-19 cases have also continued to rise with increased political activities for the last two weeks, leaving Kenya in the list of countries under travel bans where it was placed in April even after several media outlets in the UK projected that Kenya would join countries like Qatar, UAE, Baharin and India which were moved to amber list.