Kenya Airways (KQ, Nairobi Jomo Kenyatta) is finalising new lease terms with 12 aircraft and engine lessors and hopes to conclude negotiations by July 31, 2022, says Chief Executive Officer Allan Kilavuka.

"We are working on the details of the agreements which we should conclude by 31 July after which we can share," he informed ch-aviation by email.

He was responding to a query after Chief Financial Officer Hellen Mathuka told Kenya’s Business Daily the airline was renegotiating new lease terms that would see the airline move from fixed charges to hourly rates as part of an ongoing cost-cutting drive that forms part of its current restructuring process. She said negotiations began in April, but was unable to share more details due to contractual obligations.

Kilavuka earlier told ch-aviation that Kenya Airways had already managed to renegotiate lease terms with its lessors for practically all its aircraft in 2021, saving more than USD45 million, but that the lessors had not been prepared to extend these arrangements.

Through the new terms, fleet ownership costs were reduced by USD100 million from KES28.5 billion (USD246.6 million) in 2020 to KES16.6 billion (USD146.6 million) in 2021, contributing to an almost 4% reduction in overall costs, he said.

According to the ch-aviation fleets module, the fleet currently comprises 34 aircraft, of which 17 are leased from Aviation Capital Group, Macquarie AirFinance, Goshawk, AerCap, Deucalion Aviation, and BOC Aviation, respectively.

The fleet includes:

Two B737-700s were returned to lessor Cross Ocean Partners last year.