Kenya Airways sees $60m savings from new maintenance deals

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Kenya Airways expects to saving up to KShs5 billion (US$60 million) over the next five years after re-negotiating maintenance contracts with suppliers of aircraft components.

The SkyTeam carrier says the savings come from improved commercial terms, cost savings and the benefits of its fleet expansion which will see it more than double the size of its fleet to 1007.

Specifically it see annual savings of KShs755 million under its aircraft maintenance component support programme, while the remaining savings will come through its fleet expansion.

The cost-cutting measures comes after the airline recently revealed it had slipped to a loss in 2012/13 as while revenues fell its operating costs remained unchanged.