Kenya Airways and Boeing sign B787 deal

Kenya Airways and Boeing reached (14-Apr-2011) a settlement agreement on the delayed delivery of the nine B787-8s. The airline has also re-affirmed its intention to exercise the option of purchasing four more B787-8s after delivery of the first nine aircraft.

Kenya Airways signed a purchase agreement in 2006 for nine firm B787-8 aircraft also taking an option to purchase four additional B787-8 aircraft. The first B787-8 was expected to enter into Kenya Airways service in Oct-2010 is now expected to be delivered by 4Q2013.

The aircraft come in at a time that the airline predicts a "momentous growth in passenger and cargo demand and a rapidly expanding route network". The B787-8 will be used to replace the ageing B767 aircraft as well as open up new long range routes. Kenya Airways was the first carrier to purchase and operate the B777 in sub-Saharan Africa, and was the third major Africa airline to order the B787.

Selected Middle East & African daily share price movements (% change): 14-Apr-2011