Titus Naikuni said trade between Africa and China and India had soared in recent years, growing at an annual rate of about 200 percent, creating huge opportunities in the travel market, he added that extra aircraft would enable the airline to start six new routes to China, six new routes to India, a service to Madrid as well as increase frequencies on its numerous African routes.
Ranked as one of Africa's largest airlines and 26% held by Air France KLM, Kenya Airways will invest $250-million towards funding the plan. "We are looking at African markets [as well as Asia and India] and we need to connect these three land masses." Naikuni expects subscriptions to be "100% if not more. It is going to be a success." Air France KLM and the government, which holds a 23% stake, had agreed to take up their rights, he said.
Kenya Airways' current debt equity ratio stands at around 1, allowing it to borrow a further $2.2-billion. According to Engineering News, Naikuni said that the balance of the required funds would be generated from internal resources, giving the airline a chance to double its passenger fleet to 68 planes and add eight freighters. It currently operates a sole, leased freighter. The airline is expecting 10 E-190 Embraer jets due for delivery between July next year through to 2013. It also signed a deal for the purchase of 787-8 Dreamliner planes with Boeing in April last year.
Read the full article on www.engineeringnews.co.za.
