Kausha wrote:let us wake up KQ is at government bail out point. Technically this means the business model and business they are run is nolonger making sense and can only remain relevant because the GoK views the national airline as a strategic asset and will spend the money to keep it going for the next twelve months or 15. The history of government bail out for national carriers tells us it takes upwards of 36 months for the process. First government will put in the initial bail out money which will be incinerated because very little will be changed within the next twelve months. Then KQ will still be in the woods but showing some positive signs of health. Another injection of capital which will still be incinerated as management try to squeeze out positive performance and then things will come to a head and GoK will demand very radical solutions before putting in a dime. Then only will KQ be on a proper road to recovery. At the moment GoK is chums with management and management is chummy with staff while none of them is helping the business.
In summary KQ will only make operating profits in 2020 at the earliest.
Hii ni bangi ya Luanda.. KQ narrowed the operating loss by 8.3B in its half year and the same is expected to be stretched higher into an operating profit for full year by the CEOs own disclosure to KTN a few days ago! Its good to research before you post @kausha
In this financial year ending next week, KQ has received 20B from afriexim, 3,5B from landing lot sale, 24.6B from treasury, KES 7B from sale of two Boeing 777.. This may appear insignificant to some people, but coupled with renegotiation of loan tenors, falling A1 prices, route optimization, decreases in HOTAC arising from increased OTP, return of the west africa routes, turning tide in tourism arrivals, Asia-Africa business boom, JJ dominance of the local market, the list is endless.. my money is on KQ to rise like the proverbial phoenix. Chris Kirubi, Mike Macharia and I shall be inside the plane upon take off..