Zet AI‑inzichten om in gerichte actie
Trending
Categories
Kenya Airways Terminates Terra Avia Agreement, Considers Leasing B777F

Kenya Airways Terminates Terra Avia Agreement and Pursues Boeing 777F Lease
Kenya Airways has officially ended its capacity agreement with Terra Avia, attributing the decision to escalating fuel costs. The airline is now engaged in discussions to lease a Boeing 777F freighter as part of a strategic initiative to expand its cargo operations. Acting CEO George Kamal confirmed to ch-aviation that negotiations for a long-term lease of the B777F are underway, though he refrained from providing further specifics regarding potential lessors or aircraft variants, emphasizing that talks remain in the preliminary stages.
Strategic Shift in Cargo Fleet Composition
This development follows Kenya Airways Cargo’s announcement in June 2026, which outlined plans to replace its Boeing 747-400(BCF) capacity—specifically the ER-BYK (msn 25152)—with more fuel-efficient widebody freighters such as the Boeing 767 or 777. The airline aims to sustain a daily cargo capacity ranging between 180 and 200 tons while controlling operational expenses. Kamal highlighted during a half-year briefing on August 26, 2026, that the high fuel consumption of the 747 freighter rendered it economically unviable, describing the aircraft as “not the right one for us” due to its elevated operating costs.
Kenya Airways’ pursuit of a B777F lease coincides with its ambition to significantly increase its share of Kenya’s air cargo market from approximately 11% to over 40%. This expansion strategy is poised to alter the competitive dynamics within the region, potentially prompting rival carriers to reassess their capacity and market approaches. Currently, the airline’s cargo fleet comprises two company-owned Boeing 737-300(SF) aircraft and two leased Boeing 737-800(SF) freighters, according to ch-aviation data.
Industry analysts observe that Kenya Airways’ cargo growth plans, particularly the prospective addition of a B777F, align with global trends favoring widebody freighters for enhanced cargo capacity. However, this strategy also exposes the airline to ongoing fuel price volatility, which continues to pressure profit margins.
Operational and Financial Developments
Kamal also addressed operational challenges linked to global supply chain disruptions. Two Boeing 787-8 aircraft remain grounded pending replacement engines, while two of the airline’s nine Boeing 737-800s are currently out of service. To facilitate the return of these aircraft within the next six months, Kenya Airways has secured a shareholder loan and is collaborating closely with original equipment manufacturers, including General Electric. Notably, one Boeing 787-8 has already resumed service following a major maintenance check, and a Boeing 767-300ER has recommenced flights to London Heathrow.
On the financial front, Kenya Airways is preparing to attract a strategic investor, contingent upon the completion of a balance sheet restructuring. Shareholders have approved additional capital injections, and KPMG has prepared an investment memorandum to support this process. The airline is in the process of appointing a transaction adviser to identify and engage potential investors. Chairman Kiprono Kittony reported expressions of interest from parties in the United States, China, South Africa, and Singapore, underscoring that the capital-raising exercise will be conducted transparently in light of the airline’s listing on the Nairobi Securities Exchange.
“We are confident that we shall achieve both a capital-raise partner and a strategic partner from the aviation industry,” Kittony stated in an interview with Citizen TV.

Textron Aviation Receives Australian CASA Part 145 Certification

SIAEC Acquires 30% Stake in Arport AME Fujian

Plane Shortages Fuel Growth in Aircraft Maintenance and Repair

AMAC Aerospace Sees Increased Demand for Bombardier Jets

Air Peace Denies Fire Alert on Wet-Leased Aircraft

EuroAtlantic’s New CEO Details Dual-Fleet Strategy

Reviving Forgotten Airliner Designs

BOI and Airbus Collaborate to Develop Thailand as an Aviation Hub

The Rutan Boomerang: An Aircraft Designed Asymmetrically
