CEO Sebastian Mikosz clarified that the airline actually owns 20 aircraft
KQ has scoffed at claims that it only owns 3 planes and was only leasing others.
CEO Sebastian Mikosz clarified that the airline actually owns 20 of the 40 aircraft in its fleet.
“There is a rumour we only own 3,” Mikosz said. “This is preposterous…KQ has a fleet of 40 aircraft out of which we own 20.”
In an internal memo to the airline staff, the CEO said 3 aircraft have been paid for fully while 17 are still under financing arrangement.
He said: Within the aviation industry today, it is very uncommon and is even considered less business savvy for an airline to actually own its planes.”
Mikosz added that the current trend is for airlines to sig leases for up to 12 years during which the planes are held as collateral /guarantees as the airline pays for the same in installments.
“This allows us to optimally use our limited financial resources for other investments such as network expansion as opposed to buying the aircraft, which would mean significant capital outlay,” he said.
“ The leasing concept is similar to a house mortgage where you sign a contract and are allowed to live/use the house as you slowly make payments towards the house and once payments are fully made, you fully own the house with no further conditions.”