Kenya Airways loses KSh202 million every month to its Boeing 777

Kenya Airways loses KSh202 million every month to its Boeing 777

Kenya Airways CEO Sebastian Mikosz has disclosed that the airline loses approximately $2 million (KSh202 million) every month to its Boeing 777 aircraft. Speaking at a parliamentary committee meeting, the executive admitted that the purchase of the long-range aircraft was a mistake.

“We did a mistake with the 777 which are costing us lots of money and trouble today, and I’m doing everything I can to get rid of those aircrafts….” said Mr. Sebastian to the parliamentarians in charge of the Transport, Public Works and Housing.

The planes were bought in the early 2000s from Boeing as part of the airline’s expansion plan. In 2016, KQ sold two B777 airplanes to a US airline company and leased the remaining fleet to Turkish airlines.

Mr. Sebastian took up his job at Kenya Airways in June 2017 with the hope of changing its fortunes from a loss-making company into a profit making airline. The senior executive revealed that he earns KSh4 million plus allowances every month while the company’s chairperson, Michael Joseph, pockets KSh1.25 million gross salary every month. Despite several management changes, Kenya Airways has been making huge losses since 2013.

Speaking at the same meeting, the Cabinet Secretary for Transport Mr. James Macharia said that government was looking at other options of reviving the aviation industry after the KQ – KAA merger plan hit a rock.

Mr. Macharia said, “Following concerns raised by the public, we are now exploring other potions of delivering the government’s objective of consolidating our aviation assets.”