Looking long term there is a lot to be bullish about, air travel on the African continent is yet to take off, expect more and more Africans to travel by air in coming years, yes competition will intensify but Africa's high passenger yields and KQ's first mover advantage should compensate...there is also a plan by an union of African airlines to start buying fuel together that will give them more bargaining power plus the global economy can't sustain current high oil prices so I expect oil to head south, dreamliners consume less fuel I.e 20% less..the share is greatly discounted..book value is around Sh30 I stand to be corrected...the share will take a beating in the short term so SELL before 19 March if u r not in it for long term..I also expect FY 2012 earnings to disappoint but margins should recover in H2 2013...but long term I.e 2015 the boeing should have a market cap of Sh 50b, on my blog http://contrarianinvestingkenya.info there is a guide to the rights issue.

Thats 90% capital gain in the 3 years + the dividends. One will have more than doubled their capital.

@guru, what return would you be looking at for the level of risk that KQ counter bears?

KQ has a market cap of only 8.2B and is looking to raise over 20B! The current shareholders will be greatly diluted. With oil prices rising and other airlines moving into the African airspace,potential returns for investors (both long term and short term) are unlikely to be great.

Had not even read the press releases.

Current year profits to fall short at least 25%.

Over next 5 years, they borrow 180b. At 10% interest, sounds like interest payments work out at 18b. I dont see how doubling operations will generate additional operating profits of even 10b. KQ keeps making more money from derivatives than from operations.

a rights issue should have a lower number of shares than the existing shares, (my thinking) hii ni mbaya sana!! but KLM and GOK have assured a 50% uptake so it should be a success.