Abacus Wealth Management

KQ's Local Carrying Capacity Falls 5%

Kenya Airways’ (KQ) local carrying capacity has fallen 5% for the 2nd quarter of 2012.  Earlier this year the airliner traded its large Boeing 737 for the smaller Embraer 190 (E190) models, reducing the space available for both Kenyan-based passengers and their cargo.

According to the company’s press release, KQ has seen passengers uplifted within Kenya go down 1.4% to 182,000 from 184,000 the previous year. Despite these pitfalls, passenger traffic in the rest of Africa grew 2.9%. Flights to South Sudan were especially popular owing to the regions recent spike in investment opportunities.

The airliner has since increased its carrying capacity for the Middle and Far East through the use of larger aircraft. It has also introduced direct flights to some parts of the region like Dehli and Jeddah. This will lessen the burden of having to board several planes to get to one destination.

Late last month, KQ secured financing for 10 more Embraer E190 aircraft, 9 Boeing Dream Liners and 1 Boeing 777-300ER. The latter’s General Electric GE90-115B engine broke the world record for being the most powerful machine of its kind. According to the Guinness Book of Records, It is the best selling jet-engine of its generation. KQ believes that their investment will improve the company’s overall performance and enable Kenyans to access other routes within the continent. Titus Naikuni, the Group’s CEO said that the new planes will increase carrying capacity and replace the aircraft that are due for retirement. The new E190’s will arrive within the 3rd quarter of this year while the rest are scheduled for 2014.

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