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Kenya Airways...why ignore..
Rank: Member Joined: 5/30/2016 Posts: 332 Location: Kayole
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[quote=obiero]this editorial in today's paper is the first well thought piece I have read from any paper this year http://www.businessdaily.../-/oothqdz/-/index.html[/quote] Talking about editorials seems these foreign airlines are thriving here Lufthansa deploys larger planes on Nairobi routeGerman airline Lufthansa is set to deploy larger aircraft and increase its frequencies on the Nairobi Frankfurt route on ‘huge demand’.KEGN, KPLC, KQ, SCOM
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Rank: Member Joined: 10/14/2011 Posts: 661
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VituVingiSana wrote:obiero wrote:VituVingiSana wrote:Forget about borrowing 10bn to pay off redundant, incompetent or thieving staff. Enter into bankruptcy and fire their arses. labor laws.. and law suits would be cheaper? plus which national airline with substantial govt holding has ever filed for bankruptcy What's the status of Air Tanzania? Why shouldn't an airline with substantial government holding file for bankruptcy instead of wasting taxpayer funds? The Futility of the Government Airline Bailout Government Assistance Does Not Guarantee Business Success https://fee.org/articles...rnment-airline-bailout/
Another airline with government shares goes bankrupt. JAL files for bankruptcy in record failure http://www.japantimes.co...ptcy-in-record-failure/ I fail to understand why one would want the national carrier dead, someone once said “It is hard to fail, but it is worse never to have tried to succeed.” it’s understandable that sustaining national carrier is no walk in the park -the airline industry is fraught with difficulties eg Governments restricting competition, case in point being that it took the total collapse of Air Malawi for Kenya Airways to be allowed to operate flights between Malawi, High cost etc. http://www.afdb.org/en/b...african-airlines-12723/
Look at the brighter side! Africa’s air transport industry is dominated by three large national flag carriers, South African Airlines, Ethiopian Airlines and Kenya Airways. There is an intangible warm feeling for many customers in boarding an aircraft that represent elements of their own national culture and possibly with the national flag on the tail and many countries provide generous subsidies to their national “flag” carriers. Govt is doing its best. http://www.businessdaily...4/-/l14yi5/-/index.html
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Rank: Chief Joined: 1/3/2007 Posts: 18,347 Location: Nairobi
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Quite stupid to have a loss-making "National Carrier" when another stronger airline could be rise from the ashes. If GoK is going to finance/bail out the airline, why not bail out every failing enterprise? Even worse, KQ is in it's current state largely because of corruption AND incompetence NOT circumstances beyond their control. The CFO was on the take. Even an ardent supporter like @Obiero will tell you that. The Finance Staff was siphoning money through funny deals. The former CEO was arrogantly saying he would rather raise cows. This bullshit of 'sovereignty', 'national airlines', etc has been fed to us by crooks. Why not reduce taxes by 20bn on enterprises that CREATE value? Give the factories a tax break. They create jobs for Kenyans. Give the farmers a tax break. They create real wealth. The tea farmers complain of high taxes, the coffee farmers of cartels, the pyrethrum farmers of delayed payments. I support and fly KQ as an AIRLINE but I cannot support the BUSINESS. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/23/2009 Posts: 14,215 Location: nairobi
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VituVingiSana wrote:Quite stupid to have a loss-making "National Carrier" when another stronger airline could be rise from the ashes.
If GoK is going to finance/bail out the airline, why not bail out every failing enterprise?
Even worse, KQ is in it's current state largely because of corruption AND incompetence NOT circumstances beyond their control.
The CFO was on the take. Even an ardent supporter like @Obiero will tell you that.
The Finance Staff was siphoning money through funny deals.
The former CEO was arrogantly saying he would rather raise cows.
This bullshit of 'sovereignty', 'national airlines', etc has been fed to us by crooks.
Why not reduce taxes by 20bn on enterprises that CREATE value? Give the factories a tax break. They create jobs for Kenyans. Give the farmers a tax break. They create real wealth. The tea farmers complain of high taxes, the coffee farmers of cartels, the pyrethrum farmers of delayed payments.
I support and fly KQ as an AIRLINE but I cannot support the BUSINESS. KQ has always been profitable. If I could I would buy the entire airline and make it tick. Rapid expansion and the attendant corrupted environment did us in.. However, at the moment we are on track to profits in less than 9months. The audits have also strengthened control. PJT are yet to show the silver bullet, which would turn fortunes.. Let's wait and see
KQ ABP 4.26
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Rank: Chief Joined: 1/3/2007 Posts: 18,347 Location: Nairobi
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obiero wrote:VituVingiSana wrote:Quite stupid to have a loss-making "National Carrier" when another stronger airline could be rise from the ashes.
If GoK is going to finance/bail out the airline, why not bail out every failing enterprise?
Even worse, KQ is in it's current state largely because of corruption AND incompetence NOT circumstances beyond their control.
The CFO was on the take. Even an ardent supporter like @Obiero will tell you that.
The Finance Staff was siphoning money through funny deals.
The former CEO was arrogantly saying he would rather raise cows.
This bullshit of 'sovereignty', 'national airlines', etc has been fed to us by crooks.
Why not reduce taxes by 20bn on enterprises that CREATE value? Give the factories a tax break. They create jobs for Kenyans. Give the farmers a tax break. They create real wealth. The tea farmers complain of high taxes, the coffee farmers of cartels, the pyrethrum farmers of delayed payments.
I support and fly KQ as an AIRLINE but I cannot support the BUSINESS. KQ has always been profitable. If I could I would buy the entire airline and make it tick. Rapid expansion and the attendant corrupted environment did us in.. However, at the moment we are on track to profits in less than 9months. The audits have also strengthened control. PJT are yet to show the silver bullet, which would turn fortunes.. Let's wait and see @Obiero - If you step back as a shareholder... think what's best for KQ and Kenya. KQ can still operate in 'bankruptcy' [let's use RESTRUCTURING] without the need to take on more loans subsidized or guaranteed by taxpayers. Employees can sue the 'old' KQ [call it KQ] but a new KQ [call it Phoenix] can still fly using planes leased or bought from KQ. Phoenix hires or leases staff from KQ. The good staff. None of those incompetent or corrupt staff. Mbuvi would hopefully know who is who. Phoenix hires or leases aircraft from KQ. The aircraft it needs. Mbuvi would hopefully know what he needs. Some of the aircraft leases can even be transferred to Phoenix from KQ. Phoenix can enter into new deals with suppliers without the 'kickbacks' negotiated by Mbugua & his team. Genuine suppliers will be pissed off at KQ but many will understand and supply Phoenix as long as Phoenix pays. The same goes for agents, etc. It's not an easy path but I would rather have a SMALLER but PROFITABLE airline that is sustainable. KQ's Operating Profit will be eaten up by staff rationalization. Under Phoenix, there are no staff to fire since they are either staff KQ wants OR have leased from KQ. If KQ needs 10bn to pay off staff then 2016-17 will be a huge charge for that which will drag down the PBT back into loss territory. We need a sane discussion about bailing out taxpayer funded zombie firms. I believe that zombie firms should be killed off [Walking Dead] and let the 'phoenix' rise if there is one inside. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/23/2009 Posts: 14,215 Location: nairobi
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VituVingiSana wrote:obiero wrote:VituVingiSana wrote:Quite stupid to have a loss-making "National Carrier" when another stronger airline could be rise from the ashes.
If GoK is going to finance/bail out the airline, why not bail out every failing enterprise?
Even worse, KQ is in it's current state largely because of corruption AND incompetence NOT circumstances beyond their control.
The CFO was on the take. Even an ardent supporter like @Obiero will tell you that.
The Finance Staff was siphoning money through funny deals.
The former CEO was arrogantly saying he would rather raise cows.
This bullshit of 'sovereignty', 'national airlines', etc has been fed to us by crooks.
Why not reduce taxes by 20bn on enterprises that CREATE value? Give the factories a tax break. They create jobs for Kenyans. Give the farmers a tax break. They create real wealth. The tea farmers complain of high taxes, the coffee farmers of cartels, the pyrethrum farmers of delayed payments.
I support and fly KQ as an AIRLINE but I cannot support the BUSINESS. KQ has always been profitable. If I could I would buy the entire airline and make it tick. Rapid expansion and the attendant corrupted environment did us in.. However, at the moment we are on track to profits in less than 9months. The audits have also strengthened control. PJT are yet to show the silver bullet, which would turn fortunes.. Let's wait and see @Obiero - If you step back as a shareholder... think what's best for KQ and Kenya. KQ can still operate in 'bankruptcy' [let's use RESTRUCTURING] without the need to take on more loans subsidized or guaranteed by taxpayers. Employees can sue the 'old' KQ [call it KQ] but a new KQ [call it Phoenix] can still fly using planes leased or bought from KQ. Phoenix hires or leases staff from KQ. The good staff. None of those incompetent or corrupt staff. Mbuvi would hopefully know who is who. Phoenix hires or leases aircraft from KQ. The aircraft it needs. Mbuvi would hopefully know what he needs. Some of the aircraft leases can even be transferred to Phoenix from KQ. Phoenix can enter into new deals with suppliers without the 'kickbacks' negotiated by Mbugua & his team. Genuine suppliers will be pissed off at KQ but many will understand and supply Phoenix as long as Phoenix pays. The same goes for agents, etc. It's not an easy path but I would rather have a SMALLER but PROFITABLE airline that is sustainable. KQ's Operating Profit will be eaten up by staff rationalization. Under Phoenix, there are no staff to fire since they are either staff KQ wants OR have leased from KQ. If KQ needs 10bn to pay off staff then 2016-17 will be a huge charge for that which will drag down the PBT back into loss territory. We need a sane discussion about bailing out taxpayer funded zombie firms. I believe that zombie firms should be killed off [Walking Dead] and let the 'phoenix' rise if there is one inside. the name KQ alone is worth about 112 billion. your ideas sound fine but in utopian state
KQ ABP 4.26
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Rank: Chief Joined: 1/3/2007 Posts: 18,347 Location: Nairobi
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obiero wrote:VituVingiSana wrote:obiero wrote:VituVingiSana wrote:Quite stupid to have a loss-making "National Carrier" when another stronger airline could be rise from the ashes.
If GoK is going to finance/bail out the airline, why not bail out every failing enterprise?
Even worse, KQ is in it's current state largely because of corruption AND incompetence NOT circumstances beyond their control.
The CFO was on the take. Even an ardent supporter like @Obiero will tell you that.
The Finance Staff was siphoning money through funny deals.
The former CEO was arrogantly saying he would rather raise cows.
This bullshit of 'sovereignty', 'national airlines', etc has been fed to us by crooks.
Why not reduce taxes by 20bn on enterprises that CREATE value? Give the factories a tax break. They create jobs for Kenyans. Give the farmers a tax break. They create real wealth. The tea farmers complain of high taxes, the coffee farmers of cartels, the pyrethrum farmers of delayed payments.
I support and fly KQ as an AIRLINE but I cannot support the BUSINESS. KQ has always been profitable. If I could I would buy the entire airline and make it tick. Rapid expansion and the attendant corrupted environment did us in.. However, at the moment we are on track to profits in less than 9months. The audits have also strengthened control. PJT are yet to show the silver bullet, which would turn fortunes.. Let's wait and see @Obiero - If you step back as a shareholder... think what's best for KQ and Kenya. KQ can still operate in 'bankruptcy' [let's use RESTRUCTURING] without the need to take on more loans subsidized or guaranteed by taxpayers. Employees can sue the 'old' KQ [call it KQ] but a new KQ [call it Phoenix] can still fly using planes leased or bought from KQ. Phoenix hires or leases staff from KQ. The good staff. None of those incompetent or corrupt staff. Mbuvi would hopefully know who is who. Phoenix hires or leases aircraft from KQ. The aircraft it needs. Mbuvi would hopefully know what he needs. Some of the aircraft leases can even be transferred to Phoenix from KQ. Phoenix can enter into new deals with suppliers without the 'kickbacks' negotiated by Mbugua & his team. Genuine suppliers will be pissed off at KQ but many will understand and supply Phoenix as long as Phoenix pays. The same goes for agents, etc. It's not an easy path but I would rather have a SMALLER but PROFITABLE airline that is sustainable. KQ's Operating Profit will be eaten up by staff rationalization. Under Phoenix, there are no staff to fire since they are either staff KQ wants OR have leased from KQ. If KQ needs 10bn to pay off staff then 2016-17 will be a huge charge for that which will drag down the PBT back into loss territory. We need a sane discussion about bailing out taxpayer funded zombie firms. I believe that zombie firms should be killed off [Walking Dead] and let the 'phoenix' rise if there is one inside. the name KQ alone is worth about 112 billion. your ideas sound fine but in utopian state @Obiero - 1) Why aren't you putting in ALL your money into KQ? 2) How many shares in KQ does Mbuvi own? 3) What is Mbuvi's salary? Are you telling me that KQ's brand is worth KES 112bn?  Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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COO interviews done...I believe they have gotten a proper replacement for Guibert. possunt quia posse videntur
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Rank: Member Joined: 5/29/2016 Posts: 898 Location: Nairobi
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maka wrote:COO interviews done...I believe they have gotten a proper replacement for Guibert. @maka, what about the fate of the CEO? Any update?
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Rank: Elder Joined: 6/23/2009 Posts: 14,215 Location: nairobi
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VituVingiSana wrote:obiero wrote:VituVingiSana wrote:obiero wrote:VituVingiSana wrote:Quite stupid to have a loss-making "National Carrier" when another stronger airline could be rise from the ashes.
If GoK is going to finance/bail out the airline, why not bail out every failing enterprise?
Even worse, KQ is in it's current state largely because of corruption AND incompetence NOT circumstances beyond their control.
The CFO was on the take. Even an ardent supporter like @Obiero will tell you that.
The Finance Staff was siphoning money through funny deals.
The former CEO was arrogantly saying he would rather raise cows.
This bullshit of 'sovereignty', 'national airlines', etc has been fed to us by crooks.
Why not reduce taxes by 20bn on enterprises that CREATE value? Give the factories a tax break. They create jobs for Kenyans. Give the farmers a tax break. They create real wealth. The tea farmers complain of high taxes, the coffee farmers of cartels, the pyrethrum farmers of delayed payments.
I support and fly KQ as an AIRLINE but I cannot support the BUSINESS. KQ has always been profitable. If I could I would buy the entire airline and make it tick. Rapid expansion and the attendant corrupted environment did us in.. However, at the moment we are on track to profits in less than 9months. The audits have also strengthened control. PJT are yet to show the silver bullet, which would turn fortunes.. Let's wait and see @Obiero - If you step back as a shareholder... think what's best for KQ and Kenya. KQ can still operate in 'bankruptcy' [let's use RESTRUCTURING] without the need to take on more loans subsidized or guaranteed by taxpayers. Employees can sue the 'old' KQ [call it KQ] but a new KQ [call it Phoenix] can still fly using planes leased or bought from KQ. Phoenix hires or leases staff from KQ. The good staff. None of those incompetent or corrupt staff. Mbuvi would hopefully know who is who. Phoenix hires or leases aircraft from KQ. The aircraft it needs. Mbuvi would hopefully know what he needs. Some of the aircraft leases can even be transferred to Phoenix from KQ. Phoenix can enter into new deals with suppliers without the 'kickbacks' negotiated by Mbugua & his team. Genuine suppliers will be pissed off at KQ but many will understand and supply Phoenix as long as Phoenix pays. The same goes for agents, etc. It's not an easy path but I would rather have a SMALLER but PROFITABLE airline that is sustainable. KQ's Operating Profit will be eaten up by staff rationalization. Under Phoenix, there are no staff to fire since they are either staff KQ wants OR have leased from KQ. If KQ needs 10bn to pay off staff then 2016-17 will be a huge charge for that which will drag down the PBT back into loss territory. We need a sane discussion about bailing out taxpayer funded zombie firms. I believe that zombie firms should be killed off [Walking Dead] and let the 'phoenix' rise if there is one inside. the name KQ alone is worth about 112 billion. your ideas sound fine but in utopian state @Obiero - 1) Why aren't you putting in ALL your money into KQ? 2) How many shares in KQ does Mbuvi own? 3) What is Mbuvi's salary? Are you telling me that KQ's brand is worth KES 112bn? KQ is a global trademark. Even Msafiri alone could be worth KK which is a regional thing that struggles for market share in its home territory unlike KQ which is a dominant player at home and beyond. Hizi profit zitakuja, just wait and learn
KQ ABP 4.26
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