Better times of sub-2 bob are yet to be tested.

There is nothing positive about this company it's just 1 big shit hole and the worst thing is the MD staying putting...lack of ideas kabisa.

EBENYO KQ FY 2015 results analysis and commentary.

Revenue-kshs 116,158,000,000
Expenses-kshs 142,265,00,000
Balance- Kshs negative 26,107,000,000.

*Fuel costs forms 40% of the airline direct costs.Deloite found a lot of corruption here involving employees.The pride of africa buys fuel at higher price than any other airline.Kq is loosing about 27 bilion here.If its sealed,operating loss will be wiped out.The tender process here is very corrupt.
Its commendable however that direct costs came down from 76 billion in 2014 to 67 bilion in 2015.The efforts done their are bearing fruits.
*7 aircrafts were leased/sold.Nevertheless,fleet ownership cost went up from 25 bilion to 29 bilion.This partly due to the arrival of the new aircraft.KQ should stop buying new aircrafts for now.Attention should be turned to the maintenance of current 36 aircrafts only.To make sure that they are in good conditions and are generating more revenues.
*With the intended staff lay off, i expect the overhead costs to come down in the next financial year.Kq should also make good use of pride center.
*The govt should give kshs 30 bilion to KQ in order to brigde the gap between operation costs and loans repayment.The company should go for cheap loans in the market.Avoid loan repayment in dollars.This will save atleast kshs 3.5 bilion.
*Customers should bear the costs of foreign exchange.At 10 bilion,foreign loss is high.
*Longterm loan of kshs113 bilion should be rescheduled.

BASED ON THESE FY 15 RESULTS:
*KQ will need to generate revenue in excess of kshs 143 bilion to close the profitability gap.This means they will have to make kshs 27 bilion more.
In FY 14 they generated kshs 110 bilion.That means they made 6 bilion more in FY 15.
*Let me assume they will make 6 bilion more in the current FY 16 period.That will bring revenue to kshs 122 bilion.Going this way,it will take atleast the next five years for KQ to return to profitability.

@ebenyo.. Are you part of the audit team handling KQ or these are simply your desires

@obiero,based on these results,the current turnaround strategy is just aimed at bridging the profitability gap.Realistically,thats painstakingly slow.It will take years to be effective.
Tell me anything else either from these results or insider hearsay or whatever else on:
1.How the company
intends to grow revenue.
2.How the company intends to cut down (a)Direct costs,(b)Fleet ownership costs (c)Overheads