Kenya Airways (KQ) is poised to transfer ownership of two of its leased Boeing 777‑300 aircraft as part of an evolving restructuring strategy aimed at cutting costs and realigning its fleet to current operational needs.
The national carrier confirmed that the two wide‑body jets, which had been under lease and deployed on long‑haul routes including Europe and the Middle East are now in transition back to the lessor a move expected to yield savings of between Sh3.3 billion and Sh3.9 billion. Negotiations for this lease termination are actively underway, with one already near completion.
These aircraft were previously leased by KQ and subsequently subleased to third parties, including Turkish Airlines. For instance, one of the three Boeing 777‑300s was deregistered in Kenya and re‑registered with a foreign carrier in a cost‑cutting manoeuvre.
The shift comes against a backdrop of KQ’s broader fleet optimization efforts, where the airline is offloading underperforming and non‑aligned assets to stabilize finances.
This latest transaction is part of a wide‑ranging strategy embracing lease termination, sub‑leasing arrangements, outright sales, and refinancing to improve cash flow and reduce maintenance liabilities.
Earlier this year, KQ had entered into sub‑leasing deals that, despite mitigating excess capacity, resulted in losses equivalent to some gains highlighting the complexity of its restructuring efforts.
Furthermore, the airline is pursuing a sale and leaseback scheme involving six Boeing 787‑8 Dreamliners, one Boeing 777‑300, and even a spare engine.
The deal, brokered by UK‑based Air Partner, will allow KQ to free up capital while retaining operational use of the aircraft via lease arrangements.
A notable addition to the fleet comes in the form of a Boeing 737‑800 acquired from Dubai Aerospace Enterprises. This narrow‑body aircraft will boost KQ’s seat capacity and operational versatility amid an industry‑wide aircraft shortage.
In sum, Kenya Airways is aggressively reshaping its fleet composition shifting focus from high‑capacity but costly wide‑body jets that no longer align with network demands, to leaner, more efficient configurations better suited to its financial and strategic reality.
The proposed ownership change of the leased Boeing 777‑300s represents yet another calculated step on this challenging turnaround path.
Written By Ian Maleve
