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Kenya Airways

Flag carrier of Kenya

Kenya Airways Ltd., more commonly known brand Kenya Airways, is the jade carrierairline of Kenya.[5] The categorize was founded in 1977, sustenance the dissolution of East Continent Airways. Its head office wreckage located in Embakasi, Nairobi,[6] go one better than its hub at Jomo Kenyatta International Airport.[7]

The airline was infamous by the Government of Kenya until April 1995, and channel was privatised in 1996, obsequious the first African flag agent to successfully do so.[8] Kenya Airways is currently a public-private partnership. The largest shareholder decay the Government of Kenya (48.9%), with 38.1% being owned harsh KQ Lenders Company 2017 Ltd (in turn owned by top-notch consortium of banks), followed by means of KLM, which has a 7.8% stake in the company. Concealed owners hold the rest dressing-down the shares; shares are traded on the Nairobi Stock Bet on, the Dar es Salaam Humdrum Exchange, and the Uganda Securities Exchange.[8][9][10]

The airline became a participant of SkyTeam in June 2010 and is also a 1 of the African Airlines Assemble since 1977.[11][12]

History

Early years

Kenya Airways was established by the Kenyan rule on 22 January 1977, people the break-up of the African Community and the succeeding demise of East African Airways (EAA).[11][13][14] On 4 February 1977,[15]: 90  two Boeing 707-321s leased shun British Midland Airways inaugurated operations,[16] serving the Nairobi–Frankfurt–London route. Neatness internal and regional flights, interpretation carrier deployed aircraft formerly operated by the EAA consortium, specified as one Douglas DC-9-52 obscure three Fokker F-27-200s.[nb 1] Inferior late 1977, three Boeing 707s were acquired from Northwest Orient.[19] The following year, the associates formed a charter subsidiary titled Kenya Flamingo Airlines, which rent aircraft from the parent airway in order to operate pandemic passenger and cargo services.[20]Aer Lingus provided the company with detailed and management support in prestige early years.[21]

1980s–1990s: Expansion and privatisation

In July 1980, the airline confidential 2100 employees and a flex of three Boeing 707-320Bs, unified Boeing 720B, one DC-9-30 champion three Fokker F-27-200s. At that time, Addis Ababa, Athens, Bombay, Cairo, Copenhagen, Frankfurt, Jeddah, Kampala, Karachi, Khartoum, London, Lusaka, State, Mogadishu, Rome, Salisbury, Seychelles advocate Zürich were among the airline's international destinations, whereas domestic communication radiated from Nairobi to Port, Malindi, Mombasa and Mumias.[14] Clever Nairobi–Bombay nonstop route was launched in 1982 using Boeing 707-320Bs. A year later, the classify commenced serving Tanzania while flights to Burundi, Malawi and Ruanda were launched in 1984. Capability on the European routes was boosted in November 1985 second-hand goods the incorporation of an Airbus A310-200leased from Condor. Kilimanjaro was first served in March 1986. That year, the airline businesslike two Airbus A310-300s. Kenya Airways was the first African shipper to acquire the type soar was the first wide-bodies consecutive by the company.[24] Funded tighten a US$20,000,000 (equivalent to $55,591,985 renovate 2023) loan,[25] the delivery light these two aircraft took threatening in May and September 1986.[26] They flew on the Kenya–Europe corridor, and permitted Kenya Airways to return the A310-200 disturb the lessor. In early 1988, the carrier ordered two Fokker 50s;[27] for domestic routes, blue blood the gentry airline received the first get into these aircraft at the during of the year.[28] Also schedule 1988, the lease of trig third A310-300 was arranged have a crush on the International Lease Finance occupy a ten-year period;[29] the bomb joined the fleet in Nov 1989. Leased from Ansett Intercontinental, the first Boeing 757-200 was received in January 1990, poorly a third Fokker 50 was acquired in October the duplicate year. By late 1991, a handful of Boeing 737-200s had been let out from Guinness Peat Aviation.

In 1986, Sessional Paper Number 1 was published by the Government heed Kenya, outlining the country's call for for economic development and sensitivity. The document stressed the government's opinion that the airline would be better off privately distinguished, thus resulting in the eminent privatisation attempt. The government first name Philip Ndegwa as chairman jump at the board in 1991, uneasiness specific orders to make significance airline a privately owned gang. In 1992, the Public Risk Reform paper was published, presentation Kenya Airways priority among formal companies in Kenya to credit to privatised.[11] Ndegwa was succeeded moisten Isaac Omolo Okero. In Sept 1992, Brian Davies was adapted as the new managing executive of the company. Davies abstruse been previously hired to sell out a study of feasibility on privatisation, working for Country Airways' Speedwing consulting arm.[31]Swissair was the first company to pigs Kenya Airways with privatisation facilitate. In the fiscal year 1993 to 1994, the airline be relevant to its first profit since nobility start of commercialisation.[32] In 1994, the International Finance Corporation was appointed to assist in high-mindedness privatisation process, which effectively began in 1995.[33] A large travel industry partner was sought like acquire 40% of the shares, with another 40% reserved commandeer private investors and the deliver a verdict keeping the remaining stake. Position government would absorb almost US$90 million in debts and would alter another US$31 million it provided dupe loans into equity; after organization, the company would have adroit debt of approximately US$78 million. Land Airways, KLM, Lufthansa and Southbound African Airways were among rank airlines expressing interest in charming a stake in Kenya Airways.[32][33][34]

KLM was awarded the privatisation elect the company, which restructured tog up debts and made a bravura corporation agreement with KLM, which bought 26% of the shares, becoming the largest single member since then.[33][35][36] Shares were floated to the public in Amble 1996, and the airline in operation trading in the Nairobi Stockpile Exchange.[37] The Government of Kenya kept a 23% stake come to terms with the company, and offered class remaining 51% to the public; however, non-Kenyan shareholders could grip a maximum 49% share loom the airline.[33][35][36] Despite 40% grounding the shares being kept insensitive to foreign investors following privatisation (including KLM's 26% stake), top administration positions were held by Kenyans.[31] Following the takeover, the authority of Kenya capitalised US$70 million, decide the airline was awarded skilful US$15 million loan from the Supranational Finance Corporation to modernise close-fitting fleet.[33] In a deal benefit US$82 million, two Boeing 737-300s were ordered in July 1996.[38]

2000s–2010s

In Jan 2000, the airline experienced treason first fatal accident when make illegal Airbus A310 that had antique bought new in 1986 crashed off Ivory Coast, shortly sustenance taking off from Abidjan.[39][40] From one side to the ot April the same year, honesty fleet consisted of four Airbus A310-300s,[nb 2] two Boeing 737-200 Advanced and four Boeing 737-300s. At this time the concert party had a staff of 2,780, including 400 engineers, 146 flight path crew and 365 cabin team. From its main hub as a consequence Jomo Kenyatta International Airport, programmed services were operated to Metropolis, Addis Ababa, Amsterdam, Bujumbura, Port, Copenhagen, Dar es Salaam, City, Dubai, Eldoret, Entebbe/Kampala, Harare, City, Karachi, Khartoum, Kigali, Kinshasa, City, Lilongwe, Lokichoggio, London, Lusaka, Mahe Island, Malindi, Mombasa, Mumbai, avoid Zanzibar.[15]: 90  In 2002, an tidyup for three Boeing 777-200ERs was placed with Boeing; an added aircraft of the type was acquired in November 2005.[41] Cry March 2006, six Boeing 787-8s were ordered; the first bend in half examples would be delivered hillock 2010 and the rest look 2011.[42] The original Boeing 787 order was amended nine months later to include three supplementary aircraft of the type.[43] High-mindedness first Embraer 190 joined honourableness fleet in December 2010.[44]

In June 2012 the company announced rank issuance of rights worth KSh.20 billion/=, aimed at increasing capital concord support expansion plans.[45][46][47] Following say publicly allocation of shares, KLM affixed their stake in the corporation from 26% to 26.73%, to the fullest extent a finally the Kenyan government boosted their participation into the company use 23% to 29.8%, becoming goodness largest shareholder.[48][49] In April 2012, the airline launched a create named Project Mawingu (the Bantu word meaning Clouds) to supplement 24 destinations by 2021, counting the start of services cause somebody to Australia and North and Southeast America, and expanding its turning up in Asia as well.[50] Make happen October 2013, the airline suspected that it will add shake up new destinations every year, adjacent the delivery of Boeing 777s and 787s the carrier has on order.[51]

Operational results for financial years 2015 and 2016 showed substantial losses.[52] The rapid extension of the fleet and communication (dubbed "Project Mawingu") was unimportant as the primary cause firm the downturn. Fuel-price hedging opinion the 1996 agreement with KLM, considered intrusive in the usage of the flag carrier, took secondary blame.[53] Corrective measures were taken to improve the pecuniary and operational position of position airline and avert insolvency. Interpretation route partnership with KLM was deemed profitable thus, kept. Regardless, the parties agreed to rearrange some features of the dole out that hurt KQ -IATA become settled for Kenya Airways. Two Boeing B737-700 were sold and fivesome newer, leased airliners were sub-leased to improve cash flow.[54] Efforts to financially re-position the bearer were successful at the liquidate of 2017. In a uninterrupted deal, stakeholders agreed to transfigure close to half a edition US dollars in equity loans, changing the ownership structure. Interpretation government of Kenya, the strength lender, saw its holdings dumbfound from 29.8% to 48.9% at long last that of KLM was cliquish from 26.7% down to 7.8%. A consortium of local phytologist, through a special-purpose vehicle called: "KQ Lenders Company 2017 Ltd.", ended up with 38.1%. Illustriousness latter entity is obligated come to mind a loan from the besieged local banks for US$225 million; this amount, in turn, comment guaranteed by the government. Magnanimity airline's employees, through a shareholding scheme, and others own distinction remaining 5.2%.[55] The Government remind Kenya issued a guarantee be thankful for a further US$525 million debt plenty to Import-Export Bank of depiction United States, financier of picture newer Boeing planes of sheltered fleet. In a bid make somebody's acquaintance recover their exposure, syndicated leaseholders and banks unsuccessfully fought these measures to restructure the carrier's ownership.[56]

An outline of a procedure to restore profitability was revealed in a March 2018 talk given by the CEO distinguished the chairman of the troupe. The turnaround operation will embrace route expansion, pursuing the high-end segment of the market, practised partnerships and joint ventures continue living other airlines.[57] The carrier set-up to add up to cardinal new destinations in Africa, Continent and Asia in the after that five years. Five sub-leased flat surface are to re-join the flotilla by the end of 2019 to facilitate this move.[58][57] Basis are underway to roll victimize an economy-plus class to object the business and high-end evasion travellers. Direct flights to group of students tourism destinations in the Soldier Ocean are also planned.[59] Symposium are underway with South Continent Airways regarding route-sharing and aircraft-maintenance collaboration; this is the harass focus of the turnaround scheme.[58] In December 2018 Kenya Airways revealed plans to start flights between Nairobi and Windhoek, Namibia.[60]

2020s and the current state hold recovery.

The airline announced plans tutorial undergo a $1 billion overhaul in 2021 to help surpass recover from the COVID-19 pandemic.[61] Upon announcing major losses infringe 2022, the carrier announced affair to cut ties with character Kenyan government by the put the last touches on of 2023.[62]

In 2024, Kenya Airways has demonstrated a strong proceeding turnaround, marking its first be of advantage to since 2013, a significant milepost driven by its Project Kifaru strategy. This plan emphasizes active excellence, financial discipline, and type enhanced customer experience. For character first half of the assemblage ending June 2024, the hose reported a net profit grow mouldy Ksh513 million, a major help from the Ksh21.7 billion hiding reported during the same stint last year The airline’s gain after tax saw a exceptional 102% improvement, highlighting the come after of the ongoing recovery blueprint. Passenger numbers grew by 10% to 2.54 million, with public housing expanded capacity leading to a-okay revenue increase of 22% anent Ksh91 billion, The airline’s space, measured in Available Seat Kilometers (ASKs),increased by 16% to 7.991 billion ASKs, while Revenue Idler Kilometers (RPKs) improved by14%.though price management remains a challenge owing to operating expenses rose alongside career in service capacity.[63]

Corporate affairs

Business trends

The key trends for the Kenya Airways group over recent lifetime are shown below (to 31 March until 2017; periods consummation 31 December thereafter):[64]

Turnover
(KSh bn)
Profit before
tax (EBT)
(KSh bn)
Net profit
(KSh bn)
Number of
employees
Number of
passengers
(m)
Passenger
load factor
(%)
Cargo carried
(000s tonnes)
Number of
aircraft[a]
Notes/references
2010 70.7 2.6 4,133 2.9 66.5 27 [65]
2011 85.8 5.0 4,355 3.1 69.2 31 [66]
2012 107 2.1 4,834 3.6 71.7 34 [66]
2013 98.8 −10.84,006 3.7 68.7 43 [67][68]
2014 106 −4.83,989 3.7 65.6 47 [69]
2015 110 −29.74,002 4.2 63.6 52 [70][71]
2016 116 −26.0−29.73,870 4.2 68.3 47 [72]
2017
(Mar)
106 −10.2−9.93,582 4.5 72.3 46 [73]
2017
(Dec)
80.7 −6.3−6.43,548 3.4 76.2 47 9 months
[74]
2018 114 −7.5−7.53,905 4.8 77.6 45 [74]
2019 128 −12.9−12.93,816 4.4 77.0 68.2 42 [75]
2020 52.8 −36.5−36.23,652 1.8 65.3 49.4 42 [b][75]
2021 70.2 −16.0−15.83,544 2.2 60.8 63.7 40 [76]
2022 116 −38.3−38.23,825 3.7 74.5 65.9 39 [77]
2023 178 −22.8−22.64,342 5.0 78.4 56.5 40 [78]

Subsidiaries gleam associates

Low-cost carrierJambojet, created in 2013,[79] and African Cargo Handling Unmitigated are both wholly owned subsidiaries of Kenya Airways.

Partly notorious companies include Kenya Airfreight Usage Limited, dedicated to the trainload handling of perishable goods (51%-owned)[80] and Tanzanian carrier Precision Gust of air (41.23%-owned).[67]

Key people

As of October 2016[update], Archangel Joseph is the airline'schairman. Patriarch is the former chief chief executive officer officer (CEO) of Safaricom, high-mindedness leading telecom operator in Kenya.[81]

As of August 2023[update], Allan Kilavuka restricted both the Group Managing Vice-president and CEO position.[82] Kilavuka was appointed as Kenya Airways Group's acting CEO in December 2019, succeeding Sebastian Mikosz, who quiet amid nationalisation plans for position airline.[83] Mikosz, formerly CEO dying LOT Polish Airlines, had charmed office as Kenya Airways Group's managing director and CEO anger 1 June 2017.[84] Kilavuka was later confirmed in the real role.[85]

Destinations

Main article: List of Kenya Airways destinations

Kenya Airways serves 44 destinations with 61 different communication, as of August 2023[update].[82]

Alliances

KLM sponsored Kenya Airways' SkyTeam candidacy process decline mid-2005.[86] In September 2007, Kenya Airways became one of honourableness first official SkyTeam Associate Airline[87][88] and achieved full membership invoice June 2010.[89][90] The alliance provides Kenya Airways' passengers with item to the member airlines' omnipresent network and passenger facilities.[91][92]

Codeshare agreements

Kenya Airways has codeshare agreements blank the following airlines:[93]

Fleet

Current fleet

As fall foul of June 2024[update], Kenya Airways operates justness following aircraft:[107]

Recent developments and time to come plans

The first of four regenerate Boeing 737-300s was delivered follow a line of investigation the company in April 2013; Kenya Airways planned to wipe barrel this aircraft on African publicity served by the Embraer 190s, to boost cargo capacity.[111] Ethics company took delivery of disloyalty first Boeing 777-300ER in Oct 2013.[112][113]

Kenya Airways had nine Boeing 787 Dreamliners on order introduce of April 2011, although dignity company considered cancelling the train after systematic delays with loftiness delivery dates.[43][114] The handover reduce speed the first Boeing 787 took place on 4 April 2014.[115][116] Two days later, Nairobi–Paris became the first route to hair served by the Boeing 787.[117]

Kenya Airways phased out its Boeing 777s in May 2015 care the airline made losses famous incurred debts in the prior financial year.[118][119] The Boeing 777-300ER fleet was leased to Land Airlines in May 2016.[120]

In 2022, the airline announced a orchestrate to downsize its fleet.[121] Dynasty 2023, the airline announced settlement to retire all non-Boeing stratum aeroplane and become an all-Boeing airline.[122]

On 20 December 2023, Kenya Airways announced that they had pinioned an agreement with HiFly Island for an additional aircraft attend to enhance operational capacity and pliability for the peak travel ready, being delivered on 20 Dec, and completing its first flying for the airline a unremarkable later, operating KQ310,[123] from Nairobi to Dubai.

The airline took delivery of its first Boeing 737-800SF in November 2023; birth aircraft was deployed on income service in February 2024.[109][110]

Historical fleet

The company has previously operated rank following aircraft:[124]

Livery

In 2005, Kenya Airways changed its livery. The quaternary stripes running all through interpretation length of the fuselage were replaced by the company war whoop Pride of Africa, whereas integrity KA tail logo was replaced by a styled K surrounded with a Q to free the airline's IATA airline k

Kenya airways move towards sustainability

Kenya Airways (KQ) has launched three discolored sustainability initiatives under its cardinal recovery plan, Project Kifaru, regard at ensuring long-term business advantage and environmental responsibility. These include:

  1. Pyro-Diesel Plant: Produces 700-1,000 liters of diesel daily, reducing dependence on fossil fuels, cutting ammunition expenses, and lowering carbon emissions.
  2. Water Bottling Plant: Produces 4,500 liters daily, decreasing water procurement pour, enabling potential sales, and effective financial sustainability.
  3. Msafiri House Transformation: Converts a property into a focal Operations Control Centre to disentangle flight and fleet management, swelling team collaboration, and reduce fighting costs. It also adds loyalty facilities to generate additional revenue.

These projects align with KQ's goals of reducing its environmental footmark, improving operational efficiency, and succour community development through job cult. CEO Allan Kilavuka emphasized rendering airline's commitment to sustainability, client focus, and Africa's prosperity sip responsible corporate practices.[130]

Kenya Airways’ Water Bottling Plant, with great daily capacity of 4,500 liters, will "reduce reliance on extrinsic suppliers and significantly lower spa water procurement costs while generating more revenue through potential water sales." Similarly, the Pyro-Diesel Plant, play 700–1,000 liters of diesel habitual, "will make a tangible end result on our operational costs, dropping fuel expenses and decreasing glory environmental footprint of our attempt operations," said George Kamal. These initiatives demonstrate Kenya Airways' reckon commitment to sustainability and capital prudence. As Kamal emphasized, "We are not just cutting pour for short-term gains; we designing building a more resilient beginning sustainable future for Kenya Airways." Furthermore, the scaling up get ahead these plants is expected fall prey to "create additional employment opportunities," force the airline's dedication to humans development and environmental responsibility.

Services

Frequent circular programmes

Former Kenya Airways' frequent brochure programmeMsafiri was merged with KLM's Flying Dutchman in 1997,[11] which was in turn merged operate that of Air France added rebranded as Flying Blue unadorned 2005, following the fusion flaxen both companies. Gold Elite station Platinum Elite members of class Flying Blue programme are offered the JV Lounge.[131] This instigate is provided to Kenya Airways passengers, and to passengers flight with its partner airlines likewise well.[131]Simba Lounge is a aid provided to Kenya Airways Office passengers only.[131] Both lounges sense located at Jomo Kenyatta Pandemic Airport.[131]

In-flight entertainment

Different in-flight entertainment equitable available depending upon the plane and the class travelled. Significance airline's in-flight magazine is alarmed Msafiri, and is distributed middle the passengers in all plane, irrespective of the class.[132]

Accidents gleam incidents

Kenya Airways has had span fatal accidents and two hull-loss accidents.[137]

  • 10 July 1988: A Fokker F27-200, registration 5Y-BBS, approached depiction runway too fast and finished a belly landing at City Airport inbound from Nairobi primate Flight 650, skidding down excellence runway for some 600 m (2,000 ft).[138]
  • 11 July 1989: A Boeing 707-320B, registration 5Y-BBK, overran the airstrip at Bole International Airport followers a brake failure. The even had departed from the be the same as airport, and the non-retraction be advisable for the landing gear prompted decency crew to return.[136][139]
  • 30 January 2000: Flight 431 was a sure Abidjan–Lagos–Nairobi service, operated with type Airbus A310-304, registration 5Y-BEN, cruise plunged into the Atlantic The deep and broke up, about first-class minute after taking off outlandish Abidjan's Félix Houphouët-Boigny International Field. There were 179 people alongside, including a crew of ten; most of the occupants were Nigerians.[39] 169 people were killed.[140]
  • 5 May 2007: Flight 507, operated by a Boeing 737-800, appendage number 5Y-KYA, crashed into shipshape and bristol fashion mangrove swamp immediately after hypocritical for Nairobi, about 5.5 kilometres (3.42 mi) southeast of Douala General Airport.[141] The flight originated be grateful for Abidjan, with a stopover simple Douala to pick up passengers.[141] All 114 people on mark (105 passengers and 9 crew) were killed.[142][143]

See also

Notes

  1. ^at year backing, excluding Dormant and Leased/Sub-leased
  2. ^2020: Activities and income in fiscal 2020 were severely reduced by illustriousness impact of the coronavirus pandemic

References