Wazua
»
Investor
»
Stocks
»
Kenya Airways...why ignore..
Rank: Chief Joined: 1/3/2007 Posts: 18,380 Location: Nairobi
|
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  Now who would that be? @Obiero - Have you received, receive or have been promised to receive perks, upgrades, compensation from KQ or a PR agency? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: New-farer Joined: 7/1/2015 Posts: 67
|
@Obiero, Kindly,when are the FY results being released? any idea “It’s no good, it’s no good!” says the buyer—
then goes off and boasts about the purchase-Proverbs 20:14
|
|
|
Rank: Chief Joined: 8/4/2010 Posts: 8,977
|
Sam_Kibs wrote:@Obiero, Kindly,when are the FY results being released? any idea
Investor's Briefing on July 30, 2015 at Intercontinental <- Still pointing to last year's date  $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,380 Location: Nairobi
|
Coz nothing to shout about... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 14,323 Location: nairobi
|
VituVingiSana wrote: Coz nothing to shout about... Thursday 30.06.16 COOP, IMH, KEGN, KQ, MTNU
|
|
|
Rank: Elder Joined: 12/25/2014 Posts: 2,301 Location: kenya
|
obiero wrote:VituVingiSana wrote: Coz nothing to shout about... Thursday 30.06.16 We are reviewing the entire structure of management to ensure that we have the best people running KQ,” said Mr Macharia, while declining to discuss whether the chief executive Mbuvi Ngunze will be affected. “We are changing management on all levels. This is not a secret. You have seen us asking people at senior levels to leave. We shall be restoring capacity in terms of management.”
|
|
|
Rank: Member Joined: 5/29/2016 Posts: 898 Location: Nairobi
|
enyands wrote:obiero wrote:VituVingiSana wrote: Coz nothing to shout about... Thursday 30.06.16 We are reviewing the entire structure of management to ensure that we have the best people running KQ,” said Mr Macharia, while declining to discuss whether the chief executive Mbuvi Ngunze will be affected. “We are changing management on all levels. This is not a secret. You have seen us asking people at senior levels to leave. We shall be restoring capacity in terms of management.” But he needs to act fast enough.Fresh thinking is what is needed very fast otherwise it will end up taking too long to resuscitate it. Look at Uchumi, several measures have been taken but it is far from winning back the confidence of the consumers and suppliers. http://www.businessdaily...1/-/nx5uch/-/index.html http://www.nation.co.ke/.../-/lfax3sz/-/index.html
http://www.standardmedia...sport-cs-james-macharia
Another article by the Star below. http://www.the-star.co.k...ts-at-ceo-exit_c1370639
|
|
|
Rank: Elder Joined: 12/4/2009 Posts: 10,820 Location: NAIROBI
|
British Airways and Lufthansa Airlines have expanded their operations in Kenya with an increase in the number of weekly flights between Europe and Kenya. China Southern Airlines are taking control of the long haul Nairobi-Guanghzou Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 14,323 Location: nairobi
|
Ericsson wrote:British Airways and Lufthansa Airlines have expanded their operations in Kenya with an increase in the number of weekly flights between Europe and Kenya.
China Southern Airlines are taking control of the long haul Nairobi-Guanghzou that's true, which reinforces the long held opinion that the market is profitable, it's thuggery that ailed KQ.. Naikuni made off with billions. but luckily, thugs never live long enough to fully enjoy proceeds of crime COOP, IMH, KEGN, KQ, MTNU
|
|
|
Rank: Member Joined: 5/29/2016 Posts: 898 Location: Nairobi
|
obiero wrote:Ericsson wrote:British Airways and Lufthansa Airlines have expanded their operations in Kenya with an increase in the number of weekly flights between Europe and Kenya.
China Southern Airlines are taking control of the long haul Nairobi-Guangzhou that's true, which reinforces the long held opinion that the market is profitable, it's thuggery that ailed KQ.. Naikuni made off with billions. but luckily, thugs never live long enough to fully enjoy proceeds of crime They are taking advantage of the dramatic reduction in capacity by KQ especially in AMS and LHR. KQ have also failed to a great extent to connect China and Nairobi. China Southern is taking advantage of passengers originating from Shanghai, Beijing and other Chinese cities to route them via Guangzhou. ET is making a quick kill in these Asian routes. There is a lot of Chinese investments going on in Africa.
|
|
|
Wazua
»
Investor
»
Stocks
»
Kenya Airways...why ignore..
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|