Interview with Transport Cabinet Secretary James Macharia....Facts or fiction?

The financial problems at Kenya Airways have been mounting despite efforts to resuscitate the national carrier. Why are we not seeing results and why is the current management still in office?

KQ is a listed company and what I can give you is the information in the public domain. That is about the published results as of March 30, 2016. Although the bottom line was Sh26 billion loss there was a major improvement on the line that matters — the operational loss.

In March 2015 the operational loss was Sh16 billion yet this year March, that figure had come down to Sh4 billion. What really brought the figure to Sh26 billion has three elements to it – there was the issue of the financing costs because by then they had not sold off these big planes, or returned them or sub-leased them.

They were still carrying heavy financing cost. Secondly, the shilling had gone to about Sh102 against the dollar. Number three, they were doing the last bit of the hedge in the year ended March 30, 2016.

Therefore, if you look at the results you will find about Sh20 billion was not actually operating loss but financing cost which will not recur in the current financial year.

That is why I am saying that what is most important as a business is to look at that line of operating loss. I would, therefore, like to correct the impression that it has sunk deeper into losses.

It hasn’t. It is also not true that we have not done anything about management. Management is not about one person. People tend to focus more on the managing director yet he is just part of the management. Below him, we have changed virtually everybody from finance director, director of flight operations to chief operating officer.

But let me just assure you that more changes are coming. I cannot disclose more than that now. Bottom line is that KQ is a viable airline.

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Bure company...

I bought American Airlines at 0.25 while in bankruptcy, panicked and sold at 1.25 after it had fallen from 3, and I thought there was insider info and would wind up. Today. .

Long story short, same reasons that made me buy at .25 is like kuli kuli calling, or its Kuri Kuri my lakeside friends? Rip Omamo for teaching me that

Let KQ declare bankruptcy because it is bankrupt. That way, serious restructuring can start and the shareholders can decide to recapitalise it, whatever. Pouring taxpayer money into the company in its current state is criminal, no different from the Anglo leasing scams.

Yes, KQ should declare bankruptcy too. Stop pouring Taxpayer funds into KQ. It can live or die under bankruptcy.