Kenya Airways leases out plane to Turkish Airlines

Kenya Airways has signed a lease agreement with Turkish Airlines for one of its three Boeing 777-300 aircraft as part of cost-cutting measures the national carrier is undertaking.

KQ, as the airline is known by its international code, says the aircraft has since been deregistered in Kenya and subsequently re-registered with the European carrier.

The national carrier, which is under financial strain, has this year sold two Boeing 777-200 planes to US-based carrier Omni Air International and entered into a lease agreement for another pair of Boeing 787 planes with Middle Eastern airline Oman Air.

Omni Air International has already taken possession of the two aircrafts while Oman has received just one.

KQ posted a Sh25.7 billion loss last year that it has blamed on stiff competition from Middle Eastern carriers, high operating costs and other factors, triggering a cost-cutting drive that involves disposal of assets.

“It has been a long journey and we are happy to announce our plans are now coming to fruition,” Mbuvi Ngunze, KQ’s chief executive officer, said in a statement.

“Subleasing and selling of aircraft will improve our fleet costs by over $7 million a month and is part of our strategy to turn KQ into profitability in the next 18 to 24 months.”