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Kenya Airways
Ric dees
#1 Posted : Wednesday, April 22, 2009 11:41:00 AM
Rank: Member


Joined: 3/6/2008
Posts: 632
Is this transport company really making money...I was scheduled to travel with it last week..and as fate would have had it,the flight was massively overbooked by around 70-80 people. Well we were taken to Panari FB and each given $300 or $500 voucher and a 3 min international call to notify of your delay..so me and my 3 other pals hit the streets.

This past weekend am told same thing happened and it's been going on for the last 2 weeks or so..now my ticket was slightly less than £400 and they refunded me $300,now with the cost of fuel rising,stiff competition by other carriers..cargo sales dwindling at an all time low..i can't see how KQ is making money..someone please correct me...


Heart is what separates the good from the great - Micheal Jordan.

The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday's logic.
myks
#2 Posted : Wednesday, April 22, 2009 12:17:00 PM
Rank: Member


Joined: 8/14/2008
Posts: 107
crap..............

Gravity; Its not just the law,its reality.
Impunity
#3 Posted : Wednesday, April 22, 2009 12:58:00 PM
Rank: Elder


Joined: 3/2/2009
Posts: 26,330
Location: Masada
How many times have you flown in the past decade??????

Maembe wewe..........................


Which is more dirty,the pig or Kenyan mp?
Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.

mukiha
#4 Posted : Wednesday, April 22, 2009 1:31:00 PM
Rank: Elder


Joined: 6/27/2008
Posts: 4,114
@myks; @Impunity:

Be civil; please....

@Ric Dees
Don't you think that your experience indicates a huge demand for their service? Secondly,from a customer service stand-point,don't you think they compensated you well enough for breaking the promise of flying you at the booked time?
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
Ric dees
#5 Posted : Wednesday, April 22, 2009 2:32:00 PM
Rank: Member


Joined: 3/6/2008
Posts: 632
@ Mukiha

True..my point is are they really breaking even..some time ago Boeing overhauled the 777 - 300ER to accommodate more MTOW (maximum take off weight) currently standing at 750,000 kgs..this is obviously to give more room for cargo..but KQ has not been able to capitalise in the fuselage change..obviously some factors are beyond their control..i think they need to come up with a strategy fast...

In regards to customer service..well that's a whole different topic altogether but it's rather obvious they have been experiencing lean times as can be demonstrated by the kind of meals they serve..

Myks & Impunity..

Ha!!





Heart is what separates the good from the great - Micheal Jordan.

The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday's logic.
myks
#6 Posted : Wednesday, April 22, 2009 3:54:00 PM
Rank: Member


Joined: 8/14/2008
Posts: 107
KQ doesnt own 777-300ER!!!

Gravity; Its not just the law,its reality.
Obi 1 Kanobi
#7 Posted : Wednesday, April 22, 2009 5:03:00 PM
Rank: Elder


Joined: 7/23/2008
Posts: 3,017
@Ricdees

I travell with them every time and I have never had the good luck of missing my flight.

How often has it happened to you.


I guess if you can't win with facts,you can always pen bile-laced,xenophobic rants to distract everyone.
"The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
VituVingiSana
#8 Posted : Wednesday, April 22, 2009 6:17:00 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,221
Location: Nairobi
That sux for KQ... now they might have sold other tickets @ much higher prices. Or they had a cancelled flight earlier so 'combined' the flights.

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Jaymiggy
#9 Posted : Wednesday, April 22, 2009 7:13:00 PM
Rank: Member


Joined: 12/18/2008
Posts: 23
@ Ric Dee,

The next time you think of talking about airline business and how they make money,get your facts together. And by the way,KQ doesn't have any B777-300ER but B777-200ER. The capacity on that equipment is 322. There is no upright thinking Airline Revenue Management proffessional will overbook that equipment by more than 10% bearing in mind that these big equipments operate longhauls. And again,unless you don't know,u might have bought that seat at GBP400 (that means you were travelling from or returning to UK),someelse,still in economy class as you,bought his/hers at double that amount. Having said that,the 80 people you are talking about is a case of cancelled and compined flights!! Mark you,KQ is the only Airline I know which has posted some sensible profits!!! check around before u start bluffing!!
eli
#10 Posted : Wednesday, April 22, 2009 8:04:00 PM
Rank: Member


Joined: 6/17/2008
Posts: 294
Fact: KQ is making money!

If it were not,it would be posting losses. Well, I haven't seen them record losses in the last 5 years! Convinced?

But you shall remember the LORD your God,for it is He who is giving you power to make wealth,that He may confirm His covenant which He swore to your fathers,as it is this day. Deu 8:18
simonkabz
#11 Posted : Wednesday, April 22, 2009 8:23:00 PM
Rank: Elder


Joined: 3/2/2007
Posts: 8,776
Location: Cameroon
Ric dees question sounds valid n he doesnt deserve the dressing down here. Nevertheless,I hope your quiz is answered.

Truest proverb: Mwenda pole hajikwai
TULIA.........UFUNZWE!
Gordon Gekko
#12 Posted : Thursday, April 23, 2009 4:32:00 AM
Rank: Elder


Joined: 5/27/2008
Posts: 3,760
My two cents.

Airlines dont like empty seats. That's why they regularly overbook,to ensure the plane is full after no shows. Please note that KQ gave you a voucher (not cash) for use at a hotel specified by them. They give you a $300 voucher while they charge you maybe $300 a bednight at Panari when a cash client will pay only $40-70 for the same bed. You then become a happy camper believing they have 'given' you $300 for inconvenience,while you were actually the guarantor for a full flight. The $70 they pay Panari for you to spend the night there is compensated by the profit margins made on the full flight.


It is like when in order to guarantee a full plane on the Entebbe-Nbo 5am flight they offer you a discount of about $40 to stay at the Entebbe Botannical Hotel right next to the airport rather than have you miss the flight due to the 3am 50km drive from Kampala.
brubo
#13 Posted : Thursday, April 23, 2009 4:51:00 AM
Rank: Member


Joined: 3/15/2009
Posts: 15
yap. they will make money ... all airlines will generally overbook in most occassions. KQ's scenario (knowing that it operates mostly in africa) might not warrant comparison with other airlines in-terms of overbooking ratio's. Generally africa is a late booking market........pple will always book during the last few days which does not do well for the flight planners and revenue management chaps in KQ.

Mark you overbooking is not new to KQ..they've been doing in for so long .....yet making making money so this should not distract your thinking that they are spending too much putting you and others at Panari....(Most airlines generally have the best hotel rates worldwide anyway)
kodak
#14 Posted : Thursday, April 23, 2009 5:03:00 AM
Rank: Member


Joined: 10/4/2007
Posts: 30
@Ric deeds,This is what causes the problem: Internationl Air travel regulations allow airlines to overbook by a max of 10% to catter for last minute cancellations. The airlines have taken it like the rule. A flight is not full until a it is overbooked by the same number,even for NBO LON route where very few cancel or come late. It is true they need to vary the overbooking.

MMKenya
Impunity
#15 Posted : Thursday, April 23, 2009 6:34:00 AM
Rank: Elder


Joined: 3/2/2009
Posts: 26,330
Location: Masada
KQ and other airlines normally cancells flights to even 3 days consecutively....so u have not seen anything yet.So for regular voyages like some of us here,this is no news to us.Try flying Delta airlines or United Airlines and u will know how to keep mum.

Which is more dirty,the pig or Kenyan mp?
Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.

Tot
#16 Posted : Thursday, April 23, 2009 7:39:00 AM
Rank: Member


Joined: 3/18/2009
Posts: 15
@Ric Dee,

Like others have told you,it appears you are a first time flyer. You appear excited yet confused about the $300 voucher and the over-booking. Over-booking is a norm in the airline industry worldwide. And to answer your question,if you do your cost-benefit analysis well,overbooking is more profitable than flying halfway full.
Ric dees
#17 Posted : Thursday, April 23, 2009 10:00:00 AM
Rank: Member


Joined: 3/6/2008
Posts: 632
Well it seems KQ employees have come out of their woodwork and it was a simple question which just needed clarity.dint say i knew how the business operates..however i'll try and reclarify what i meant.

@JayMiggy

The 777 - 200ER/300ER were overhauled to accommodate more room for cargo. You say KQ has a capacity of 322 and what about cargo space? how many tonnes do they carry on average? That was my point..i know they have fallen short in this category and lets not kid each other pax sales are merely a bleep in the overall picture. Extended wing range for greater lift,bigger fuel tank for long hauls with empty cargo space..please enlighten me.

@ Obi

Actually this was my first time this happening with KQ..It happened to me twice last year with Virgin over Easter to Kenya and when going to SA..however what Virgin does thet take you to Premier Inn near Heathrow..no voucher,no nothing...hence that's why i stopped using them and moved back to KQ.

@Gordon Gecko..

Correction,it was $300 dollars cash or a voucher of $500 to use on KQ services.My question was very simple..are they making money and if so how.? most notable with tourism at an all time low..most characterised by the half full flights for the better part of last year and this year..and dwindling cargo exports.

@ Tot

I was excited coz of $ 300.!!!.well what to say.




Heart is what separates the good from the great - Micheal Jordan.

The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday's logic.
mukiha
#18 Posted : Thursday, April 23, 2009 11:12:00 AM
Rank: Elder


Joined: 6/27/2008
Posts: 4,114
Your answer is right below your keyboard.... you typed 'what Virgin does thet take you to Premier Inn near Heathrow..no voucher,no nothing...hence that's why i stopped using them and moved back to KQ'

On that day,that flight,that seat (plus the other 69),they made a loss...but most of you will always fly KQ in the future because of the exciting experience you ha at Panari.......

The $300 is chalked down under 'marketing costs'
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
McReggae
#19 Posted : Thursday, April 23, 2009 12:06:00 PM
Rank: Elder


Joined: 6/17/2008
Posts: 23,365
Location: Nairobi
Ric dee

Eti 777-200ER/300ER were overhauled.....by who,do you really know wat your are talking about!!!! You seem not to have any idea wat goes on when an airline is planning an aircraft acquisition!!!,airilnes that want to concentrate on cargo order FREIGHTERS which are configured fro Cargo and purely does cargo business!!!


Make money.....then you will enjoy all the fine things in life!!!
..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
meow
#20 Posted : Thursday, April 23, 2009 12:32:00 PM
Rank: Member


Joined: 4/11/2009
Posts: 48
So far I have counted 12 serving KQ staff here at SK and one of them is a great Manu(re) fan...
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