This archive report was first published on 1 July 2021.
Published on July 1, 2021, Kenya Airways has taken a significant step to reduce its expenses by renegotiating the lease terms of its aircraft fleet.
The airline has opted for a productivity-based payment method, which replaces fixed costs with hourly rates. This move is expected to save the airline $45 million this year.
Kenya Airways has already saved $3.1 million after terminating a leasing agreement for two Boeing 737-700 aircraft. The airline manages a fleet of 36 planes, with 19 leased from different lessors.
The airline's fleet ownership cost increased to KSh28.6 billion in 2020, up from KSh25.3 billion in 2019. However, the airline was unable to reach a deal to pay its pilots per trip, as it seeks to reduce its wage bill to weather the COVID-19 pandemic.
