Kenya Airways reveals 10-year strategy

The 10-year growth plan codenamed Project Mawingu – from the Swahili word for clouds – is aimed at operating 119 aircraft, representing a significant increase from its current fleet of 42. It is likewise aimed at increasing its destinations from 58 to 115 routes in 77 countries in six continents by 2021.

 

In 2007, Kenya Airways joined Sky Team, a global network of 19 international carriers. Through the network, Kenya Airways is able to offer its passengers service from 1,000 airports in 187 countries.

 

Abraham Joseph, regional general manager, South Asia, Middle East and North Africa,  said: “The Middle East has seen considerable growth in aviation in the last few years. The Gulf region has provided great opportunities for growth especially to the African continent. Currently, we offer 10 weekly flights from Dubai to Nairobi, with excellent connections to the rest of Africa. We also have three weekly flights from Dubai to Hong Kong, with immediate connections to Manila and other South East and Far East destinations.”

 

He added: “Our Jeddah flights will start on June 2 2013 with two flights a week, and flights to and from Abu Dhabi will start with three weekly flights from July 2. We also recently signed a code share agreement with Etihad which will enable us to work together in developing traffic from the Middle East to the African continent. By mid-2014, we have plans to start flying to Beirut three times a week.”

 

Kenya Airways' 10-year plan will see a significant increase in new aircraft. To date, the airline has firm orders for nine B787s (with 20 on options) and three B777-300ERs, for which delivery starts in the first quarter of 2014. In addition, the company plans to expand its narrow-bodied fleet, subject to further orders, which will facilitate expansion across Africa and the Middle East. Most notably, Kenya Airways envisions operating 32 787s by 2021, which will eventually become the carrier's workhorse.

 

Kenya Airways is also planning a sizeable freighter aircraft fleet expansion. Having recently taken delivery of a Boeing 737 freighter aircraft (the first of three), the company envisions having seven 777-200LR freighters in FY2020/21. It also intends to expand its 737-400 fleet to five, giving the airline a dedicated freighter fleet of 12.

 

To facilitate its route and fleet development, Kenya Airways estimates it will need approximately $3.7 billion in financing over the next five years. Much of this will be provided through cash flows and traditional sources of finance such as loans and capital markets.

Kenya Airways is a listed company with 30.94% of its shares controlled by individual shareholders. Local strategic investors hold another 14.2% and foreign investors control 5.84%. However, it also has secure backing from KLM, which owns 26% of the airline, and from the Kenyan Government, which has a strategic 23% stake.