Interesting Comments - Link hereKQ’s desire to double its fleet has been talked about for the past 5 years and unfortunately whenever the topic got serious, the airline got a reality check when its annual “net losses” were disclosed us thus forcing it to consider network + fleet cut backs. As long as a route such as JFK is operated on a nonstop daily basis (currently reduced to 5 weekly), the airline has no hope of making an overall net profit as a “stand alone airline entity”.
Currently, KQ operates 35 aircraft i.e. 15 E90s + 8 B787-8s + 4 B737-700s + 8 B737-800s. To double its fleet within 6 years for an airline like KQ is not commercially nor financially feasible.
To begin with, its fleet planning strategy needs to be addressed as for them to consider the A321NEO-LR is a big mistake as it does not need to add another fleet type into the mix especially in the narrow body category when its pilots + engineers are already trained and rated on the B737s for decades.
The current fleet revolves around 3 aircraft types which need to be brought down to 2 in order to realize long term cost savings and efficiencies throughout the airline. This can be done in the below manner:
a) The 15 E90s by 2024 need to be replaced by 15 Boeing 737MAX7s (7M7s). Over here, KQ need to get Boeing to offer them a similar deal to what AC got few years ago when the latter ordered a bunch load of B737MAXs and in exchange Boeing purchased 20 E90s from them.
b) 4 B737-700s + 8 B737-800s to be replaced by Boeing 20 737MAX8s (7M8s) only
c) The 8 B788s to be replaced by 10 B789s provided Boeing agrees to buy back the 8 B788s in exchange for this above proposed new order.
d) Total 45 aircraft spread across 2 fleet types only i.e. B737MAX + B787 families
e) 70 aircraft are not needed and the more long-haul wide body flying the airline does, the higher annual net loss it will end up incurring.
f) The incremental narrow body aircraft need to be used to strengthen a second medium haul departure hub wave bank out of NBO airport