Boeing loses out as Kenya Airways goes for Embraer jets

Kenya Airways on Tuesday morning signed a purchase agreement that will see the Kenyan carrier buy up to 26 jets from Brazilian firm Embraer in a deal that aligns the airline’s expansion plan and threatens the dominance of US aircraft maker Boeing on the African continent.

The Kenyan carrier has been aggressively moving into new markets, especially in Africa, a move that has put a strain on its fleet, which stood at 31 in March.

An Embraer spokesperson on Monday said the deal will include the supply of 10 jets and the rights for Kenya Airways to purchase an additional 16 whose delivery is expected from the second half of next year.

Kenya Airways decision to buy Brazilian jets, which are mainly used in domestic and short regional routes, is set to shift the balance of power in the sale of planes in Kenya that has remained in the hands of Boeing.

It is also a blow to European Airbus whom Kenya Airways has been mulling to offer contracts following delays by Boeing to deliver planes agreed on in 2006.

The Brazilian firm has in the past year launched a charm offensive in Africa as it seeks to cut the dominance of Boeing and Airbus.

This is in line with the push by Brazil to boost trade with continent as emerging countries gradually shift their economic dependence away from rich nations.

Trade between Brazil and Africa has increased more than five-fold to US$26 billion since 2003 and its embassies in the region have doubled to 34 in its quest to grow business for their companies.

Source: Business Daily