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Kenya Airways...why ignore..
Rank: New-farer Joined: 4/11/2016 Posts: 30 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. It would work in other industries but not in aviation. The Air Operators Certificate is the license an airline needs to operate and is issued after demonstrating sufficient managerial,financial and safety capacities. If you shut down your AOC goes down with you and if you change even a coma in your name you have to start the process from scratch. Just an example ...Jambo jet after 2 years still does not have its own AOC and is thus operating on KQ's AOC.By the time the new "KQ phoenix " gets its licence the market share will be cleaned out by vulture foreighn airlines. There is also lots of goodwill embedded in the brand in terms of supplier credit,airport passenger handling experience, airport landing slots and most important the regulators i.e KCAA,IATA. I wouldnt call KQ a zombie airline. They have solid revenues, a functional operations system and an enviable african footprint. At some point last year for a month during the summer schedule they hit the ever elusive 80% cabin factor. They have just been overspending and wasting the cash. Mckinsey are doing a decent job so far in curbing the waste.Once they get bailout funds plus a solid management team with aviation experience KQ will be back on track. Delta was in similar shape but look at it now. Question is....Is the board willing to take the necessary management change steps? Is there a serious conflict of interest even within the board.?The longer they wait the harder it becomes.
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Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada
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ArrestedDev wrote: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? Sealed. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Member Joined: 5/29/2016 Posts: 898 Location: Nairobi
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Impunity wrote:ArrestedDev wrote: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? Sealed. Good news. Any tentative exit date?
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Rank: Member Joined: 5/29/2016 Posts: 898 Location: Nairobi
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nzalela 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. It would work in other industries but not in aviation. The Air Operators Certificate is the license an airline needs to operate and is issued after demonstrating sufficient managerial,financial and safety capacities. If you shut down your AOC goes down with you and if you change even a coma in your name you have to start the process from scratch. Just an example ...Jambo jet after 2 years still does not have its own AOC and is thus operating on KQ's AOC.By the time the new "KQ phoenix " gets its licence the market share will be cleaned out by vulture foreighn airlines. There is also lots of goodwill embedded in the brand in terms of supplier credit,airport passenger handling experience, airport landing slots and most important the regulators i.e KCAA,IATA. I wouldnt call KQ a zombie airline. They have solid revenues, a functional operations system and an enviable african footprint. At some point last year for a month during the summer schedule they hit the ever elusive 80% cabin factor. They have just been overspending and wasting the cash. Mckinsey are doing a decent job so far in curbing the waste.Once they get bailout funds plus a solid management team with aviation experience KQ will be back on track. Delta was in similar shape but look at it now. Question is....Is the board willing to take the necessary management change steps? Is there a serious conflict of interest even within the board.?The longer they wait the harder it becomes. @nzalela, It seems you have some privileged information regarding KQ, what about the flaws in fuel procurement? Have they been addressed? What is bedeviling KQ is what we have said here - internal bleeding and competing interest from many players including employees and the political elite through proxies. The proposal by @VVS is practical and it depends on which angle you look at. The goodwill that KQ have from suppliers, passengers, employees and other stakeholders is very huge and I understand. It will take a tall order to get rid of the management totally and the many conflicting interests surrounding it. With respect to AOC, It can be done especially if it has the backing of the government, transfer of assets can be done gradually. If KQ management was serious enough, Jambojet should be having it's own AOC. They never anticipated that Fastjet will be given a go ahead to fly to Nairobi. You remember they had filed an objection but when the new director general of KCAA took over and the matter came before him, he granted them. Fastjet will also get an AOC very soon as they recently got the ASL and they will start domestic flights in Kenya. It is about leadership. The pilots even raised the issue of Jambojet AOC with KQ management when they were in a tug of war with leasing of the Q400 with pilots (wet lease). Ideally, an airline without an AOC cannot enter into a wet lease agreement. There are some bottle necks that will arise in respect to what @VVS is proposing. The anticipated full clean up of contracts wont be realised in full. The loans used to acquire majority of the new aircrafts are guaranteed by shell companies and it is only when the repayments are done in full that the title of ownership is transferred to KQ. From the latter, the new outfit 'phoenix' as @VVS calls it will still assume these contrasts unless a huge capital injection to the new outfit is done to pay off these loans.Many other issues to be dealt with will arise e.g. employees who will be declared redundant. If they move to court, the new outfit may not escape liability although it will be a different corporate entity from the old KQ.
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Rank: Elder Joined: 6/23/2009 Posts: 14,215 Location: nairobi
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@nzalela @arresteddev @maka are all KQ senior employees
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:@nzalela @arresteddev @maka are all KQ senior employees Everyone but the shareholders make money off KQ. @Nzalela @maka @Obiero 1) If you believe in KQ, do you have most of your net worth in KQ? 2) Does Mbuvi have shares in KQ? How many? @Obiero talks the talk but has very little invested in KQ. @Obiero - Do you get perks/upgrades/paid by KQ or any of the PR folks? 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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nzalela 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. It would work in other industries but not in aviation. The Air Operators Certificate is the license an airline needs to operate and is issued after demonstrating sufficient managerial,financial and safety capacities. If you shut down your AOC goes down with you and if you change even a coma in your name you have to start the process from scratch. Just an example ...Jambo jet after 2 years still does not have its own AOC and is thus operating on KQ's AOC.By the time the new "KQ phoenix " gets its licence the market share will be cleaned out by vulture foreighn airlines. There is also lots of goodwill embedded in the brand in terms of supplier credit,airport passenger handling experience, airport landing slots and most important the regulators i.e KCAA,IATA. I wouldnt call KQ a zombie airline. They have solid revenues, a functional operations system and an enviable african footprint. At some point last year for a month during the summer schedule they hit the ever elusive 80% cabin factor. They have just been overspending and wasting the cash. Mckinsey are doing a decent job so far in curbing the waste.Once they get bailout funds plus a solid management team with aviation experience KQ will be back on track. Delta was in similar shape but look at it now. Question is....Is the board willing to take the necessary management change steps? Is there a serious conflict of interest even within the board.?The longer they wait the harder it becomes. lovely insights from @nzalela.. simply accurate and eye opening to the blind. KQ is a long term holding for the bold investor. Timid men and women should keep distance and comment on other stocks such as HAFR, KK & Mumias
KQ ABP 4.26
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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obiero wrote:nzalela 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. It would work in other industries but not in aviation. The Air Operators Certificate is the license an airline needs to operate and is issued after demonstrating sufficient managerial,financial and safety capacities. If you shut down your AOC goes down with you and if you change even a coma in your name you have to start the process from scratch. Just an example ...Jambo jet after 2 years still does not have its own AOC and is thus operating on KQ's AOC.By the time the new "KQ phoenix " gets its licence the market share will be cleaned out by vulture foreighn airlines. There is also lots of goodwill embedded in the brand in terms of supplier credit,airport passenger handling experience, airport landing slots and most important the regulators i.e KCAA,IATA. I wouldnt call KQ a zombie airline. They have solid revenues, a functional operations system and an enviable african footprint. At some point last year for a month during the summer schedule they hit the ever elusive 80% cabin factor. They have just been overspending and wasting the cash. Mckinsey are doing a decent job so far in curbing the waste.Once they get bailout funds plus a solid management team with aviation experience KQ will be back on track. Delta was in similar shape but look at it now. Question is....Is the board willing to take the necessary management change steps? Is there a serious conflict of interest even within the board.?The longer they wait the harder it becomes. lovely insights from @nzalela.. simply accurate and eye opening to the blind. KQ is a long term holding for the bold investor. Timid men and women should keep distance and comment on other stocks such as HAFR, KK & Mumias @obiero you mean to assert that KK is a new, abnormal zombie at the exchange? John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Elder Joined: 6/23/2009 Posts: 14,215 Location: nairobi
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Spikes wrote:obiero wrote:nzalela 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. It would work in other industries but not in aviation. The Air Operators Certificate is the license an airline needs to operate and is issued after demonstrating sufficient managerial,financial and safety capacities. If you shut down your AOC goes down with you and if you change even a coma in your name you have to start the process from scratch. Just an example ...Jambo jet after 2 years still does not have its own AOC and is thus operating on KQ's AOC.By the time the new "KQ phoenix " gets its licence the market share will be cleaned out by vulture foreighn airlines. There is also lots of goodwill embedded in the brand in terms of supplier credit,airport passenger handling experience, airport landing slots and most important the regulators i.e KCAA,IATA. I wouldnt call KQ a zombie airline. They have solid revenues, a functional operations system and an enviable african footprint. At some point last year for a month during the summer schedule they hit the ever elusive 80% cabin factor. They have just been overspending and wasting the cash. Mckinsey are doing a decent job so far in curbing the waste.Once they get bailout funds plus a solid management team with aviation experience KQ will be back on track. Delta was in similar shape but look at it now. Question is....Is the board willing to take the necessary management change steps? Is there a serious conflict of interest even within the board.?The longer they wait the harder it becomes. lovely insights from @nzalela.. simply accurate and eye opening to the blind. KQ is a long term holding for the bold investor. Timid men and women should keep distance and comment on other stocks such as HAFR, KK & Mumias @obiero you mean to assert that KK is a new, abnormal zombie at the exchange? nope. just don't like the share personally and one of it's most vocal proponents. wanted to rub the dude, the wrong way
KQ ABP 4.26
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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obiero wrote:Spikes wrote:obiero wrote:nzalela 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. It would work in other industries but not in aviation. The Air Operators Certificate is the license an airline needs to operate and is issued after demonstrating sufficient managerial,financial and safety capacities. If you shut down your AOC goes down with you and if you change even a coma in your name you have to start the process from scratch. Just an example ...Jambo jet after 2 years still does not have its own AOC and is thus operating on KQ's AOC.By the time the new "KQ phoenix " gets its licence the market share will be cleaned out by vulture foreighn airlines. There is also lots of goodwill embedded in the brand in terms of supplier credit,airport passenger handling experience, airport landing slots and most important the regulators i.e KCAA,IATA. I wouldnt call KQ a zombie airline. They have solid revenues, a functional operations system and an enviable african footprint. At some point last year for a month during the summer schedule they hit the ever elusive 80% cabin factor. They have just been overspending and wasting the cash. Mckinsey are doing a decent job so far in curbing the waste.Once they get bailout funds plus a solid management team with aviation experience KQ will be back on track. Delta was in similar shape but look at it now. Question is....Is the board willing to take the necessary management change steps? Is there a serious conflict of interest even within the board.?The longer they wait the harder it becomes. lovely insights from @nzalela.. simply accurate and eye opening to the blind. KQ is a long term holding for the bold investor. Timid men and women should keep distance and comment on other stocks such as HAFR, KK & Mumias @obiero you mean to assert that KK is a new, abnormal zombie at the exchange? nope. just don't like the share personally and one of it's most vocal proponents. wanted to rub the dude, the wrong way   John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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