KENYA Airways (KQ) is seeking regulatory approval to
incorporate the Boeing 787 Dreamliner into its fleet, as it looks to shore up
its revenue by leveraging on the aircraft’s commercial advantages.
The East African airline, which recorded a loss of
Sh7.86 billion ($91.9 million) in the last financial year ended March 2013,
compared to a profit of Sh1.66 billion ($19.4 million) posted last year, is
seeking authorization from Kenya’s Civil Aviation Authority (KCAA) to add the
model to its current Air Service Licence.
An official notice signed by KCAA’s Director
General, Hilary Kioko read: “Variation of current air service licence to
include Aircraft type B787 (Dreamliner) on both domestic and international
scheduled air services.”
The request filing is a preliminary action initiated
in time to allow a smooth transition from delivery-to-operation. KQ is
expecting the delivery of 9 Dreamliners from Boeing by March 2014, and has
begun processing all regulatory paperwork to avoid hitches that might delay its
operation.
The aircraft proves to be an attractive model for
commercial airliners due to its business-friendly features: 20 percent fuel
consumption rate (which is significantly lower), increased passenger intake and
greater cargo space.
Citigroup forecast a year-end of Sh3.1 billion
($36.3 million) loss for the jetliner, which identified fuel consumption as one
of the leading bumpers of its operating cost.
However, a switch to the fuel efficient aircraft is
expected to reduce the company’s expenditure and provide greater profit margin.
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