Ericsson wrote:What is happening to KQ is a reflection of what is happening in kenya.
We are becoming an over capacity country.
KQ buying newer,bigger expensive planes before looking at whether passengers are there.
We are talking about 5000 mw yet industries to consume that power are not there and we don't know whether they will be there.
SGR viability was also brought into question.
All these are being funded by loans and the question is where will the money to repay the loans while ensuring the firms are profitable when the market is not known
If you wanted to set up a factory and the power is not enough in the country would u wait years for the country to set up the power or will u go to where there is enough power? Dreamliners we bought since they are cheaper to manage and it gives them a chance to expand their routes and be at par with competitor Ethiopian Airlines, you cant compete without the tools....tools first then compete...just like fibre internet, we still dont use most of the capacity and there were very few smartphones at the time of set up, look at the situation now, 150% growth in consumption year on year....cheap power will be same, more industries, more businesses