Wazua
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Kenya Airways FY 2012/13 after tax loss of 7.8bn
Rank: Elder Joined: 9/29/2006 Posts: 2,570
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Aguytrying wrote:Impunity wrote:Aguytrying wrote:this is why its tricky to trust gava with ur hard earned invested cash. its like they have nothing to lose.
why can't this airline be privatised, to become the saf com of the skies Isn't it a private company?  well yes, more private...he he. gava has too much control now. I thought it was privatised in 1996!!! What's the % of GoK holdings? The opposite of courage is not cowardice, it's conformity.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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hisah wrote:murchr wrote:VituVingiSana wrote:murchr wrote:VituVingiSana wrote:murchr wrote:VituVingiSana wrote: And combine the losses from hedges? 2 for 1 deal for the folks who sell them hedges! KQ has made gains from hedging in the last 2 financial years. But these guys need to concentrate on travel first before they think of anything else I would like to see the detail as presented in GAAP Accounting that includes the premium/s paid. When you hedge [depending on the hedge] you may pay a premium [upfrot fee] so the break-even comes when the gain equals the premium paid. Not to mention the premium has to be financed. KQ enters into hedge contracts with financial institutions, to fix the price at which fuel will be bought in the future. Fuel prices are volatile, and the hedging gives a limit of exposure. If the market prices go below the hedge price, KQ pays the difference to the contracted financial institution. If the price shoots above the hedge price, KQ is paid the difference. As to predicting if the price will be higher or lower, that needs an expert who is not only an accountant but a strategist who can read the geopolitics of the day. I dont know of an upfront fee...what i understand is you negotiate a price let say to buy jetfuel at 90 if it shoots to 100 the fin company gets to blow, if it melts to 80 Kq suffers the blow...simply put, its a gamble When you have a strike price, you may need to pay a premium to enter into the contract. There are negotiating fees, advisory fees, etc. Also we use the term 'hedges' but are they forwards, futures, swaps, etc? Ofcourse those fees are there by standard, but if one plays smartly, they are good. What i described ni futures Thus why I say they should rebrand from Kenya Airways to Kenya Airways hedge fund or something in that line. What is their core biz, profits from fuel hedges (bets) or air transport?  Sincerely I hope they compensate that jamaa well because if it weren't from him/her I don't know. Can u imagine the losses? "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 10/13/2009 Posts: 1,950 Location: in kenya
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Apparently Jimna mbaru is of the opinion the stock should be suspended due to volatility '......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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selah wrote:Apparently Jimna mbaru is of the opinion the stock should be suspended due to volatility
He knows something we don't. Lets buy before the suspension but I wonder what the real (legal) justification of such a move would be. The opposite of courage is not cowardice, it's conformity.
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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No sir,its willing buyer willing seller,instead convince your sellers to stay put. "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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But its still on the same spot, what volatility is he talking about? "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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He must be sunk in massive loss. When did he buy, >120, 60, 40, 20, 14? 
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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mwekez@ji wrote:He must be sunk in massive loss. When did he buy, >120, 60, 40, 20, 14? Still posting lows below the GFC lows
Now imagine what would happen if another GFC were triggered...$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 1/3/2007 Posts: 18,126 Location: Nairobi
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jerry wrote:selah wrote:Apparently Jimna mbaru is of the opinion the stock should be suspended due to volatility
He knows something we don't. Lets buy before the suspension but I wonder what the real (legal) justification of such a move would be. Isn't what Jimnah wants akin to speculation? The market is volatile for a reason. Let it be. If you want to sell, a suspension will create more problems! If Otieno wanted to buy 1 acre in Kitisuru & signed a contract which obligated him to deposit 20% & pay the rest on 1 July 2013 but the KQ shares he planned to sell were suspended coz of 'volatility' then he could lose his deposit! What's worse? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,126 Location: Nairobi
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hisah wrote:mwekez@ji wrote:He must be sunk in massive loss. When did he buy, >120, 60, 40, 20, 14? Still posting lows below the GFC lows
Now imagine what would happen if another GFC were triggered... The Board & Management get huge salaries & perks. They are not stressed about financial performance. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 3/19/2013 Posts: 2,552
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VituVingiSana wrote:hisah wrote:mwekez@ji wrote:He must be sunk in massive loss. When did he buy, >120, 60, 40, 20, 14? Still posting lows below the GFC lows
Now imagine what would happen if another GFC were triggered... The Board & Management get huge salaries & perks. They are not stressed about financial performance. Wouldn't be surprised.
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Rank: Member Joined: 2/8/2007 Posts: 808
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@VVS so what stresses them?
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Rank: Chief Joined: 1/3/2007 Posts: 18,126 Location: Nairobi
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Kausha wrote:@VVS so what stresses them? Not getting the free flights in Biz Class! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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VituVingiSana wrote:Kausha wrote:@VVS so what stresses them? Not getting the free flights in Biz Class! .... poor KQ
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Major African airlines are struggling to remain in business amid high fuel costs and fierce competition from foreign carriers. Despite a growing appetite for air transport in Africa, some regional airlines have had to shut down or be bailed out by the government because of operational hurdles such as lack of air rights. The worst-hit airlines are in Southern Africa where smaller national carriers face financial turbulence as larger rivals like South African Airways (SAA) grapple with high fuel prices and reduced passengers. For the financial year ending March 2012 the airline posted operating losses of $137 million (Sh11.6 billion) and is expected to make further losses this financial year despite a government bailout late last year. Like SAA, Air Namibia and Air Zimbabwe are also relying on the generosity of their respective governments for survival. Air Namibia is set to receive a $120 million (Sh10.2 billion) bailout from government this year to pay outstanding debts, with another $40 million (Sh3.4 billion) planned for next year and $33.5 million (Sh3.1 billion) for 2015. Air Zimbabwe announced bankruptcy in 2009 and has yet to bounce back. Across the border Air Malawi was grounded earlier this year KQ twajua mambo zake pia http://www.businessdailyafrica....8/-/6lby6mz/-/index.html
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Rank: Chief Joined: 1/3/2007 Posts: 18,126 Location: Nairobi
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The airlines that are struggling using public cash need to be allowed to collapse & form a serious Pan-African airline with shares held by governments, private shareholders, etc without a dominant shareholder yet a private-run firm BUT one with full bilateral access in essence a "African Airline". This will help counter the likes of Emirates, etc while allowing the growth of intra-Africa travel. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Quote:KQ has today announced that it has re-negotiated maintenance contract with suppliers of the airline’s component’s in a strategy that will lead to savings of upto Sh5 billion in the next five years. For the next five year contract period, the airline will save over Sh754.6 million (US$8.8 million) annually under its aircraft maintenance Component Support Programme (CSP). http://www.standardmedia.co.ke/...Sh-5-billion-in-new-deal i find it funny that they are drumming a saving of KES.5B to be gained over the next 5 years yet they made a loss before tax of KES 10.8B in only one year. Worse, they may not even get the saving as time unflolds .... They need to work on the BIG problems ASAP which will have BIG impact on the MAIN problems
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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State wants bigger say in running of Kenya Airways - http://www.nation.co.ke/.../-/wmcikuz/-/index.html
Quote:Government is considering buying a bigger stake at the national carrier, Kenya Airways, to give it more say in the running of the airline.
In what is seen as a reversal of the government policy on privatisation, Transport Cabinet Secretary Michael Kamau and his principal secretary Mr Nduva Muli told a Parliamentary committee yesterday that it was time to change the shareholding structure of the Kenya Airways.
“The time has come for us to review the shareholding of Kenya Airways. The European carriers will not add any value, they are collapsing,” Mr Muli told the Senate’s Committee on Energy and Transport. More gubberment interference coming up... $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 1/3/2007 Posts: 18,126 Location: Nairobi
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Ahhh, and I am glad I bailed out of KQ as GoK wants more control over KQ. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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Its an assurance that kq cant collapse. "Don't let the fear of losing be greater than the excitement of winning."
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Kenya Airways FY 2012/13 after tax loss of 7.8bn
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