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Kenya Airways

Kenya Airways’ profit slightly down

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Wolfgang H. Thome  Jun 09, 2008

KAMPALA, Uganda (eTN) - After a year of difficult operating conditions with huge increases in the cost of jet fuel, Kenya Airways nevertheless managed to still show strong profits, only about 7.7 percent down compared to the previous record breaking years.

The worst of the global fuel price rises were, however, smartly hedged against by the airline’s management, fending off fuel excessive surcharges for customers and helping in their market recovery after the post election violence in Kenya during the January to March 2008 period.

The airline also called for the Kenyan government to finally waive value added tax (VAT) on its domestic aviation services in line with what most countries around the world do, so that the aviation industry in general, not only Kenya Airways, could become more competitive and weather the global storm of cost explosions.

Kenya Airways management also conceded that they have received warnings from Boeing over the planned delivery of nine Boeing Dreamliner 787s, which were due between 2010 and 2012. The airline has been warned that there will be a “considerable” delay in the delivery of the new aircraft. Some are predicting Boeing, could drag delivery dates into 2014, if not beyond. Negotiations with Boeing are said to be ongoing in regard of compensation, which could bring the airline some considerable financial relief vis-à-vis the agreed prices.

Meanwhile, Commercial Director Hugh Fraser has now completed his contract and left Kenya Airways for a yet undisclosed new appointment. Mr. Fraser is leaving many colleagues behind, at Kenya Airways and across the region, following his successful years as part of the top management of the airline referred to as “Pride of Africa,” during which the airline transformed itself into one of the leading carriers from the African continent, completed a fleet renewal, joined the KLM/Air France led OneWorld global airline alliance and produced record profits.

Kenya Airways’ profit slightly down
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