Kenya Airways planes were grounded amid disagreements about lease fees with two leasing firms.

The two lessors were opposed to Kenya Airways’ new payment terms. As a result, the lessors grounded their planes at Jomo Kenyatta International Airport (JKIA) in Nairobi, according to Business Daily.

The other six leasing firms have, however, indicated that they are open to discussing the new reduced payment terms with Kenya Airways and they have not grounded their planes.

The international airline has not revealed how many planes have been affected, according to reports. As per Business Daily, the state is working on restructuring the international airline on the back of its multi-billion shilling bailout of the airline.

The bailout terms include reducing its network, operating a smaller fleet, and possibly laying off more staff.

“We are asking them to reduce their cost but some are not agreeable to the terms we are proposing. Until we agree, we want to put a pause to our relationship,” Allan Kilavuka, CEO of Kenya Airways, said.

“Two of them are not agreeable to the concession we are proposing. The other six are open to discussion and we have not signed up anything yet. Their planes are operational,” Kilavuka said.

The airline reached an agreement with the lessors last year to only pay when they fly leased aircraft following the grounding of its services on the back of Covid-19, which saw planes remain inactive. The new arrangement has seen the cost of maintaining its fleet drop from Sh28.5-billion ($246.4-million) in 2020 to Sh16.6-billion ($143.5-million) last year.

Some of the planes whose lessors are having a fallout with Kenya Airways over the new payment terms include Boeing 737 narrow-body jets, Boeing 787 wide-body jets, and Embraer.

By Zintle Nkohla 

Follow Zintle Nkohla on Twitter

Follow IT News Africa on Twitter

Sign Up for Our Newsletters

Get notified of the best deals on our WordPress themes.

You May Also Like

UBA & Cellulant Join Forces to Unite Africa’s Payments Ecosystem

Nigeria’s United Bank for Africa (UBA), and Cellulant, a leading Pan-African payments company, have announced a partnership that will extend payment services for merchants and consumers across 19 key African…
View Post

South Africa’s Dis-Chem Takes a Swing at WhatsApp Commerce

Clickatell, a CPaaS innovator and Chat Commerce leader, has been selected by leading South African retailer, Dis-Chem Pharmacies, to enable WhatsApp as its customer communication channel to engage with its…
View Post

Vodacom & Accenture Join Forces for Bespoke Cybersecurity

South African telco Vodacom and Ireland-based IT services company Accenture have partnered to launch Vodacom Managed Security services through Vodacom Business. The partnership was publically announced yesterday via press release.…
View Post

Talking E-Commerce in Africa with Telkom’s Kenneth Kayser: ITNA Digital Innovation Podcast EP 1

In this first official episode of IT News Africa’s Digital Innovation Podcast, a weekly podcast that looks at hot innovations and digital businesses in the African market, Luis Monzon chats…
View Post

TymeBank Launches Medical Insurance App for South Africans

TymeBank, the South Africa-based exclusively digital retail bank, has announced a new partnership with National HealthCare for affordable medical insurance to consumers, through the launch of TymeHealth, an app-based offering…
View Post

Nokia Kenya Dodges a $260,000 Fine in Service Centre Contract Feud

A Kenyan court has reportedly rejected a petition filed by Kenyan dealer TechnoService which is seeking Sh150-million ($257,832.60) from cellphone manufacturer Nokia for allegedly selling some of its businesses to…
View Post