Kenya Airways is planning to retire its Embraer and Bombardier and incorporate a cost-cutting measure known as mono fleeting. With this step the airline aims to optimise its sleet and network plan. The decision was taken during the 47th Annual General Meeting. It was also decided to shift the airline focus to becoming an all-Boeing airline.
With mono-fleeting, Kenya Airways plans to receive huge discounts from Boeing for bulk orders. "What mono fleeting does is to simplify our fleet and bring more commonality to the type of aircraft that we fly. It helps particularly with our training and planning and reduces costs because of the type of crew that we need, spare parts, financing and bulk discounts we can get,” said Allan Kilavuka, Group Managing Director and Chief Executive, Kenya Airways.
Mono fleeting, a cost-effective strategy often adopted by low-cost carriers involves operating a single aircraft type to reduce costs related to maintenance, training, and spare parts. The airline plans to increase commonality and operational efficiency by standardizing its fleet.
The airline will transition to mono fleet gradually to avoid operational disruptions and ensure a smooth and successful implementation.
“The board has approved that we move towards the Boeing aircraft. This is, however, going to happen progressively and not in one shot because we don’t want to overheat,” Kilavuka added.
Transition into Boeing fleet will help Kenya Airways to operate larger aircraft and cater to rising passenger demand and thus capitalise on the growing demand.
At its 47th AGM, the airline has set its sights on business recovery by 2024 after seeing an increase in revenue and passenger numbers throughout 2022. Going ahead, the group has predicted a strong recovery as global traffic increases and the industry continues to gain momentum.
In 2022, the airline experienced a 66% increase in revenue, reaching $831 million in spite of increase in fuel costs and depreciating dollar in operating expense. These positive factors led to the airline to achieve profitability by 2024.
The major challenge before Kenya Airways is the debt of $1.347bn.