Wednesday, September 28, 2005

KQ fleet expansion

Singapore Aircraft Leasing Enterprise, an affiliate of Singapore Airlines, said it will lease three new Boeing ( BA) 737-800 planes to Kenya Airways. The aircraft are the first of 20 Next Generation 737s recently ordered by SALE from Boeing and the planes will be delivered to KQ in the fourth quarter of 2006 and leased for eight years each, SALE added.

At the Paris Air Show, MD Naikiuni expressed a desire to add more wide-body aircraft - however 737 are narrow-body aircraft and not really suited for long-flights, such as to Mumbai, which should be done using the airlines' 767. It’s no fun to fly a single-aisle aircraft for 7 hours, where economy class passengers share two bathrooms and have little room to manoeuvre around meal carts.


kuoasan said...

These 737-800 will replace the EXISTING "older" 737 models. The new 737-800s are more fuel efficient.

kuoasan said...

What does surprise me is that KQ did not buy the 737-800s coz they have a good reputation at Boeing after buying 3 new 777s.

I would have thought that buying the aircraft would have made more sense since they have the cash (remember those low dividends?) to place orders with Boeing.

With their financial results there are many lenders e.g. Barclays who will front KQ the cash they need.

Leasing does not allow for depreciation allowances that can reduce the taxable balances.

Nevertheless, I think KQ will probably announce they will buy another 777 or similar aircraft since they are expanding to China & Far East.

I see Singapore as their next destination. SALE belongs to Singapore Air! Only catch is that Singapore is part of a different alliance (not skyteam) thus this might be a problem.

The 737-800s will be used for short & medium hop flights.

@Bankelele... don't worry the 767s will continue on the 4hr+ flights.

737-800s will probably be used on the following routes:

E.Africa: Msa, Kisumu, Entebbe, Dar, Juba?, Kigali, Zanzibar & Bujumbura.

Central & South Africa: Maputo, Lilongwe & SA

West Africa: They might fly to some locations depending on traffic i.e. provide direct flights to various locations that support only 150 passengers per flight.

bankelele said...

Kuoasan: The 737-800 is a natural replacement for some of the much older 737 they are now flying. It is better to lease than to buy, since Boeing are going so shift their development efforts to the new 787 over the next few years.

But having flown a 737 to Mumbai, I still feel, like you, that only wide-body aircraft like their 767 ot 777 should make 4+ hour flights. On that flight, the coach toilets got dirty and flooded, aisle was always crowded, and the crew looked overwhelmned and tired by the end of the flight.


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