777-300ER in GECAS livery. Photo: Courtesy, Boeing

Kenya Airways signed a letter of intent with GECAS for the lease of two new Boeing 777-300ERs as part of its long-term expansion plan, Group MD Titus Naikuni revealed to ATW on the sidelines of the Connectivity in Africa conference organized by Embraer in Nairobi. The new -300ERs are in addition to its Dreamliner order and are expected to be delivered at the end of 2012-early 2013 if the contract is firmed, he said.

KQ would use the widebodies on new routes to India and other points in the Far East as well as Dubai. Traffic rights are no issue, he said, noting KQ has the rights to Delhi and is in talks regarding Mumbai. Kenya and UAE have an open skies agreement.

The airline operates four 777-200s in a two-class configuration with 320 seats. "We have not yet decided on the configuration of the -300ERs but seat density will be higher than our -200s," he said. KQ's first 787s are slated to be delivered in the fourth quarter of 2013. "I pray to God Boeing will not change [the delivery schedule] again," he commented.

Naikuni also confirmed the company concluded an agreement for a 747-400F and is looking at two 737Fs. The second-hand 747 is leased and is expected to start flying with the KQ livery in October. A team is inspecting the two 737Fs "for the moment. Then we will make a decision and we expect to have them in September."

KQ recently signed a LOI for 10 Embraer E-jets with a further 10 options. It currently operates two E-190s and five E-170s in a two-class configuration. Two new E-190s, with seat-back IFE in both classes, will join its growing fleet before year end. The airline is using the E-jets on thin routes and new routes in Africa. "When you open a new route in Africa you traditionally go in with a single frequency. We realized this was not a good service. The E-jets allow us to have a high frequency," he noted.

The airline is moving ahead with its plan to add seven new destinations this year and seven next year as part of its long-term strategy to "unlock Africa" by flying to capital cities across the continent by the end of 2013. KQ commenced twice-weekly 737 service to Ouagadougou last week, its ninth destination in West Africa. While most new routes will be in Africa, KQ has Beirut and Jeddah mapped as new routes. JED has been on its wish list for a while, "but slots are a problem," he said. "They have offered slots which do not fit well in our schedule. We are negotiating."

The KQ CEO reiterated his call for more aviation liberalization and privatization on the continent, allowing for more intra-African cooperation and eventually mergers. "Ethiopian is an airline that I admire a lot, but they are state-owned. It is difficult to forge cooperation with them," he admitted. "My advice to Africa is: Governments get out of [airline] ownership." He pointed out there are "still governments in Africa that dictate where their airline will fly and it does not matter for them if they transport air or passengers."

KQ is one of the few privately owned and profitable airlines in Africa. It posted a 3.5 billion kenya shilling (US$41.8 million) net profit in its fiscal year ended March 31. The company is looking to increase capital to support its ambitious growth plan; management will present details next week.