Kenya Airways to lay off staff, sell planes in turnaround plan

Kenya Airways has embarked on a radical plan to cut costs as management looks to turn around fortunes at the struggling carrier.

The airline is in advanced stages in its sale of assets, including land and planes in a bid to draw down the second tranche of its $200 million bridging loan.

The airline, one of Africa’s biggest carriers, is also considering cutting the number of staff after a review of staffing needs. Shareholders, including the Kenyan government with a 29.8 percent stake, have broadly supported the plan so far.

Kenya Airways has already sold two Boeing 777-200s, and sub-leased three Boeing 777-300s and two Boeing 787 planes to cut costs.

The carrier has cited rising debt due to new plane purchases and competition from gulf carriers for their losses.