Kenya Airways PLC (KQ) has received a KSh5 billion loan on commercial terms from the Government of the Republic of Kenya, through the National Treasury, to facilitate the scheduled engine overhaul programs on its E190 Embraer fleet.
The cash injection will cater to an overhaul of 11 Embraer engines which is required every eight years in order to uphold the highest levels of safety and maintain reliability and planned network schedules.
The announcement has been made to the public pursuant to paragraph A.06 of the Fifth Schedule of the Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations, 2002.
“I would like to thank the Government of Kenya for making these funds available to us. As an airline, we need to be efficient across our operations but more importantly across our fleet. The Embraer fleet is our largest and is the networks’ workhorse. We also plan on undertaking refurbishments on our two Boeing 737-700 aircraft. The refurbishment will guarantee our passengers a better experience on their flights with us. The airline commits to prudent utilization of the funds to ensure value for money” said Michael Joseph – Chairman, Kenya Airways.
KQ Group Managing Director & CEO Mr. Allan Kilavuka said that Kenya plays a vital role in the aviation industry in Africa and the capital injection will go a long way in enhancing Kenya Airways operations and strengthening our fleet. “As a strategic national asset and a key driver of Kenya’s economic development and GDP growth, it is important that the airline continues to operate optimally. It is on this premise that this year, we identified six key areas of focus which are – Improving our customer’s experience, reducing costs and wastage, strengthening operational efficiency, stabilizing the organization, growing our profitability and managing relationships with our stakeholders.”
Various initiatives are already in place and progressing well across these focus areas. We are grateful to the Government for walking this journey with us and I would like to thank the KQ team that works tirelessly every day to provide a delightful experience for all our customers, Mr. Kilavuka concluded.