Former Kenya Airways manager Dan Okwiri has attributed the airline’s long-running financial troubles to grounded aircraft, weak planning for maintenance costs, and failure to follow standard airline funding practices.
Speaking during an interview with Radio Generation, Okwiri said the problems facing the national carrier are rooted in how its fleet is managed, financed, and maintained over time.
Okwiri on Tuesday said running an airline requires strict discipline in fleet planning, route selection, timing, and cost control. He explained that airlines must match the number of aircraft they own or lease with the routes they operate and ensure planes are in the air as much as possible.
“No interference. We worked, so we sat down, looked at the business of the airline,” he said.
According to Okwiri, aircraft are assets that require long-term financial planning, especially as they age.
He compared planes to human beings, noting that maintenance costs rise over time and must be planned for well in advance.
“An aircraft is like a human being. You know, at a certain point you start getting sick, and you need to invest in your body,” Okwiri said.
He explained that planes undergo different levels of maintenance checks known as A, B, C, and D checks, with costs increasing as the aircraft gets older. The most expensive is the D check, which involves stripping the aircraft completely and replacing major parts, including engines.
“The most expensive check in an aircraft, it’s a D check,” Okwiri said.
Okwiri noted that airlines are expected to set aside real cash over the life of the aircraft to cover these heavy maintenance costs.
He said this money should be kept in a maintenance escrow account managed by a third party, rather than only appearing as accounting provisions in company books.
He argued that Kenya Airways has not followed this approach, warning that accounting provisions do not guarantee that cash is available when major maintenance is due.
“Putting a provision for the 3 billion doesn’t mean the money is in cash,” he said.
Okwiri said this failure has led to several aircraft being grounded, a situation he described as a clear sign of financial loss. He said any plane that is not flying is draining money from the airline, especially long-haul aircraft.
“Any aircraft, any airline, where you see aircraft parked, is losing money,” he said.
He gave an example of a missed London flight, saying that a single grounded aircraft on the UK route can cost the airline about Sh20 million in lost revenue in one day.
“You’ve lost 20 million shillings one day like this,” Okwiri said.
He added that low aircraft use is even more damaging because modern planes like Dreamliners are extremely expensive and are usually financed or leased.
“If you lease a Dreamliner, yeah, you’re going to pay one million dollars a month,” he said.
Okwiri said the main reason Kenya Airways is losing money is aircraft remaining on the ground. He dismissed claims that spare parts shortages are the real issue, arguing that lack of funding for major maintenance checks is the deeper problem.
“That’s where things stink,” he said.
He explained that Dreamliners require D checks after eight to ten years or after flying about 24,000 hours, whichever comes first. These checks can cost around Sh3 billion per aircraft, depending on the parts replaced.
Okwiri said Kenya Airways needs about Sh20 billion to carry out D checks across its Dreamliner fleet, money he believes the airline does not have.
“That’s why the planes are grounded,” he said.
He concluded that failure to plan properly for long-term maintenance costs has left Kenya Airways unable to keep its aircraft flying, directly affecting revenue and worsening its financial position.
