Citi is a shareholder who entered at 14bob rights issue so this is just pump and dump!

sawa madam Guru. kq has refused to go past sub 10 levels which is where I bought it @ so I'll just watch

KQ shall be in the red unless they make a hedging profit this financial year.While dreamliners and 733 shall be airborne this year,the aeroplane financing costs continue to rise and competition is getting stronger.Insecurity remains a challenge and capacity constrains at JKIA further dent the margins

As noted earlier,they charge a serious premium on their routes and competition is catching up fast.A good case in point is Ethiopian,i recently did a crude comparative analysis between KQ & Ethiopian at one of the prime hubs and was amazed with the numbers queueing for ET. On furhter enquiry,the ground staff intimated that ET usually borders on full capacity while KQ has its moments.ET might have inferior service but they are flying and connecting more people from the world to Africa.Remember they have a hub in west africa and now south africa thus leverage on economies of scale.

It can be argued that the premium ticket prices may give KQ better margins but thats being short sighted as the operational costs and connectivity you offer matters alot .Thats where Ethiopian is winning the war.

Lastly one has to factor in fixed costs like training of crew and conversion of pilots from 767 to 787....operational costs shall be up at least this year.Remember the hotel that is to be put up and not to mention Jambo Jet set up costs

It is still hemorrhaging and for now,I remain out until management comes up with some solutions and also buys some shares in the company.

hii nitawachia watoto wangu......

Hmmm, perhaps @mibbz needs to look at some posts by @guru267 in regards to HAFR, Olympia, etc which seem to be, if not border on, attempts at pump and dump!

maybe your kids will be better off without the stress from kq..

Very wise words VVS,as I am paying for KQs survival indirectly via tax I don't see the need to further invest scarce resource in this venture.

Blood in the sky. Time to buy if you always wanted an airline in your portifolio.

[quote=Akenyan2014]@Nibbs, Soon KQ will be paying for your survival via tax :)
http://www.businessdaily.../-/14xlm83/-/index.html[/quote]

We both know if they pay the tax,financing costs go up and they turn to shareholders for more funds;its a vicious cycle that keeps moving tax payers money.

I think all those fears are already factored in the current price hammering. It is true the E-190s doesn't look like a good business philosophy, there were better alternatives. But those old 767s had to be replaced at some point, the earlier the better for lower operation costs. 777's capacity addition needed not be delayed either.
I agree on the capital intensive options taken could prove tough. The govt. might perhaps be called upon to help eg. with taxation headache (not a guarantee though) but eventually things will look up at some point. For sure the govt. cannot watch it collapse, it cannot be a choice to see a national carrier collapse.

I find one big problem is the fuel costs and irreducible wage bill (since a significant portion goes to untouchable key staff such as pilots). The only reservation I have is the fact that of no share ownership by management, perhaps they know recovery could take longer.