Kenya Airways said Sunday it has entered into a Sale and Leaseback transaction with Irish leasing firm, AWAS Aviation Trading Limited, for the three Dreamliners due to be delivered this year.
The airline CEO Mbuvi Ngunze, who inked the deal, said the three B787-8 Dreamliners, to be delivered in May, June and July, will be leased through AWAS rather than financed on the balance sheet of Kenya Airways.
“Given our current financing, we must be prudent in finding innovative financing solution while keeping with our growth ambition,” Ngunze said in a statement released in Nairobi.
He said the new aircraft will be important additions to Kenya Airways’ fleet as the airline strives to offer the best customer experience.
The first of the three aircrafts under this agreement arrived in Nairobi on Saturday directly from the Boeing facility in Charleston, South Carolina. This is the seventh of the nine Dreamliners ordered by Kenya Airways.
Sale and Leaseback is a practical fleet modernisation avenue for many airlines across the globe.
AWAS is a global leader in commercial aircraft sale and leasing with a portfolio of over 300 aircraft for customers around the world.
Ngunze said the transaction would be beneficial to the company’s balance sheet as it seeks to improve its liquidity.
“AWAS has proven to be a valuable, responsive and flexible business partner and we are thankful for their support. This means we meet our guest expectations with the youngest fleet in Africa as per our promise,” Ngunze said. Enditem