Business
Kenya Airways embarks on massive expansion
Kenya Airways (KQ) is taxiing on the runway, readying itself for perhaps its most important take-off in the 13 years it has been privatized.
In its cabin, the Kenya’s national flag carrier is ferrying what is arguably the most ambitious growth strategy in the history of Africa’s aviation industry.
Over the next five years, KQ will be looking to raise at least Ksh 300 billion (US$3.6 billion) to support its expansion strategy, one of which is to double its fleet and strengthen its cargo business.
The carrier currently has 31 airplanes flying to 48 countries worldwide. For a start, KQ will be turning to the stock market with the hope of raising between Ksh20-30 billion (US$240-360 million); the management says the final decision on the amount is still pending to fund the acquisition of a new fleet, through a rights issue.
In October last year, KQ shareholders approved a plan to double its authorized share capital to Ksh10 billion (US$120 million) and a rights issue to raise an unspecified amount of money.
In the last quarter of 2013, KQ expects to receive nine Boeing Dreamliner 787-800, with a possibility of leasing four others.