@mwekez@ji, an airline need not have a 51% local shareholding to be designated a national carrier. The Government can simply declare an airline a national airline regardless of local shareholding. Problems occur when an airline with say 48% local holding (say KQ) is designated national when Air Kenya (say owned 100% by bikini) is not accorded that status.

@guru, did you know that making down payment is a step in acquiring the planes required in achieving the ambitious expansion plan. Raising debt is the next step in case you dint know!

If this expansion plan will result to outstanding returns, nothing will stop the share from trading at the PE of >12 in the initial years. Certainly, as the returns set in, the PE will go down to probably the level you are talking about and investors will have made enough money to laugh all the way to the bank.

Why not! This discussion was covered here earlier

The planes should be able to service the debt. They may however explore getting a moratorium period on the repayments to give time for the planes to start generating income

The directors must be factoring in stable oil prices and stable ticket prices..

What happens when competition brings ticket prices down and global demand drives oil prices up??

What about austerity in Europe??

This may either be one big success story or an outright disaster...with all the uncertainities looming around its hard knowing what the end result will be...hope it turns out well though...