Kenya Airways is planning to sell four of its older planes to raise cash after posting record losses. Acting Transport Cabinet Secretary James Macharia told a House committee that the sale is part of a recovery plan by the airline.
Mr Macharia made the announcement when he met the Transport, Public Works and Housing Committee of the National Assembly on Tuesday. KQ posted aSh25.7 billion loss which it blamed on competition from Middle East carriers and high operating costs.
The airline also blamed travel advisories that led to a slump in the tourism industry, as well as runway closures for renovation, for eating into the company’s 2014/2015 full-year earnings.
The airline has however been accused of poor management decisions, operational inefficiencies and failure to counter competition.
Preliminary evidence gathered by a Senate Select Committee tasked to look into the airline’s operations revealed strategic errors led to the near-collapse of Kenya’s flag carrier.