Kenya Airways outlines five-year plan
18 / 09 / 2011
KENYA Airways will spend more than Sh270 billion (US$3 billion) until 2015 to double its fleet of 31 and diversify its cargo business.
Freight services are expected to contribute 20 per cent of revenue to Kenya’s business in the long term.
The airline has ordered 26 aircraft from Brazilian manufacturer Embraer, with its first freighter expected in three weeks.
Kenya has also been expanding its network – the most recent destination being to Jeddah (Saudi Arabia), which starts on 18 October.
The ongoing expansion of Jomo Kenyatta International Airport (JKIA) in Nairobi and the construction of Isiolo international airport are expected to boost Kenya’s growth strategy.
The national carrier plans to raise the money through a rights issue, retained earnings and debt. Kenya intends to use operational revenues to finance half of its plans as it balances between expansion and protecting the shareholders’ worth by avoiding share dilution. The company is expected to build up its balance sheet by retaining more of its earnings, a strategy that would also strengthen its borrowing capacity.