BROKE: Kenya Airways loses bite, plan to sale fuel guzzling Boeing planes


21 Apr 2015 | by GW Reporter
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BROKE: Kenya Airways loses bite, plan to sale fuel guzzling Boeing   planes

Kenya Airways Chief executive Mbuvi Ngunze has finally accepted that the organization he runs is broke.

Mr Ngunze says that  they plan to sell some of their older planes and 

seek out loans to help them resolve the cash deficits. They have lined 

up four Boeing 777-200 planes and a Boeing 767 for sale.

Apart from the planes, the loss making company also plans to sell some 

of its lands less than a month after it cut salaries of senior staff by half 

to help it stay afloat.

"We have bridging finance that we have been negotiating with a certain 

financier which we are in the last stages of that negotiation," he said.

Ngunze inherited a sinking ship from one Mr Titus Naikuni who left the 

company last.

The carrier, part-owned by AirFrance-KLM, made a big loss in the half-

year to September after a spate of Islamist militant attacks drove 

tourists away fromK enya and made it tough to fill its fleet of new 

Boeing 787 Dreamliners.

The company reported first-half losses of 12.5 billion shillings ($134 

million), while passenger numbers were down to 64 percent of capacity 

in the period from 69 percent in the prior year period.

The airline's shares have plunged by almost a fifth in 2015.

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