Jambojet opts to lease carriers in changes

Jambojet is considering leasing used planes in order to cut costs amid challenges posed by a weaker local currency and soaring fuel prices.

According to the firm’s Chief Executive Officer Karanja Ndegwa, the carrier which is owned by Kenya Airways, is scheduled to receive its eighthDeHavilland Dash 8-400 plane in the coming month, with the possibility of obtaining a ninth aircraft in the first quarter of next year.

Speaking to Reuters, Ndegwa said that the airline previously acquired new planes to enhance its maintenance capabilities, but prevailing circumstances have seen the firm opt for leased planes that have already served for at least two years.

“We used to get the new ones just also as we build our maintenance capabilities but over time, the ones that we are getting now, they are not new,” he said, noting that used aircraft come with shorter lease terms compared to new ones, enabling the company to make savings.

The airline anticipates a 20 per cent increase in passenger numbers this year to 1.2 million individuals, largely attributed to heightened demand for local routes from business travellers.

Ndegwa expressed confidence the airline will benefiting from the recovery of the tourism sector following the COVID-19 pandemic.

Established a decade ago, the airline faced significant setbacks in its operations during the pandemic years. In 2019, the airline transported 719,000 passengers, but its business was severely hit over the next two years.

However, in 2022, it successfully carried one million passengers, signalling recovery. Nevertheless, like other businesses in Kenya, Jambojet is grappling with the challenges posed by the steep depreciation of the local currency, the shilling, against the US dollar.