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What is the strategic importance of KQ?
Kusadikika
#1 Posted : Wednesday, March 20, 2019 7:20:47 PM
Rank: Elder

Joined: 7/22/2008
Posts: 2,721
I have put this in the politics section because that is where it belongs. Why do taxpayers have to pay for KQ losses?

Does KQ carry our flowers to European markets at a loss so that if we did not own then the flower industry would suffer?

Does it serve a national security function? Would the country be at risk of something if we did not have our own carrier?

Does it fly Kenyans at a discount? and even if it did is it the most competitively priced airline to most destinations out of Nairobi?

What would we suffer as country if we sold KQ to Emirates or Qatar or someone else who knows how to handle that business?
otienosmall
#2 Posted : Wednesday, March 20, 2019 7:56:23 PM
Rank: Member

Joined: 10/8/2010
Posts: 281
Kusadikika wrote:
I have put this in the politics section because that is where it belongs. Why do taxpayers have to pay for KQ losses?

Does KQ carry our flowers to European markets at a loss so that if we did not own then the flower industry would suffer?

Does it serve a national security function? Would the country be at risk of something if we did not have our own carrier?

Does it fly Kenyans at a discount? and even if it did is it the most competitively priced airline to most destinations out of Nairobi?

What would we suffer as country if we sold KQ to Emirates or Qatar or someone else who knows how to handle that business?



Sometimes back I flew KQ NBO-Johannesburg, South Africa (JNB) return and paid 72k. Then I discovered Ethiopian airline and Rwandair as cheaper alternatives for the same route and comfort if not better. For the later two I spend circa 40k almost half of what KQ charges. I wonder then how they claim to make loses. What amazes me is that KQ planes for such routes are always fully booked; probably by government employees coz for most people it doesn’t make economical sense to fly KQ when better alternatives exists

Why does KQ charge so exorbitantly in comparison to other players? What kind of business model did they adapt- too shitty that after all these years in operation they only own like 4 planes? I am sure this is by design to make it a cash cow for some fellows who lease the planes to them of course at astronomical rates
Fyatu
#3 Posted : Wednesday, March 20, 2019 8:36:08 PM
Rank: Veteran

Joined: 1/20/2011
Posts: 1,820
Location: Nakuru
otienosmall wrote:
Kusadikika wrote:
I have put this in the politics section because that is where it belongs. Why do taxpayers have to pay for KQ losses?

Does KQ carry our flowers to European markets at a loss so that if we did not own then the flower industry would suffer?

Does it serve a national security function? Would the country be at risk of something if we did not have our own carrier?

Does it fly Kenyans at a discount? and even if it did is it the most competitively priced airline to most destinations out of Nairobi?

What would we suffer as country if we sold KQ to Emirates or Qatar or someone else who knows how to handle that business?



Sometimes back I flew KQ NBO-Johannesburg, South Africa (JNB) return and paid 72k. Then I discovered Ethiopian airline and Rwandair as cheaper alternatives for the same route and comfort if not better. For the later two I spend circa 40k almost half of what KQ charges. I wonder then how they claim to make loses. What amazes me is that KQ planes for such routes are always fully booked; probably by government employees coz for most people it doesn’t make economical sense to fly KQ when better alternatives exists

Why does KQ charge so exorbitantly in comparison to other players? What kind of business model did they adapt- too shitty that after all these years in operation they only own like 4 planes? I am sure this is by design to make it a cash cow for some fellows who lease the planes to them of course at astronomical rates


Do you mean that Air Tanzania owns more aircraft than KQ?
Dumb money becomes dumb only when it listens to smart money
tycho
#4 Posted : Thursday, March 21, 2019 3:48:24 AM
Rank: Elder

Joined: 7/1/2011
Posts: 8,804
Location: Nairobi
For me, the Kenya of government policy and the Kenya of Wanjiku expectations are two different Kenyas and the former is always taking advantage of the latter.

That's why sometime back Mutua the governor had to do the 'Naumia kuwa Mkenya' campaign.
hardwood
#5 Posted : Thursday, March 21, 2019 9:32:48 AM
Rank: Elder

Joined: 7/28/2015
Posts: 9,562
Location: Rodi Kopany, Homa Bay
It's like struggling to maintain a cash-draining range rover so as to impress your neighbours.....so that you can be "The Pride of the village". It's an ego thing.
2012
#6 Posted : Thursday, March 21, 2019 2:41:43 PM
Rank: Elder

Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
Kusadikika wrote:
I have put this in the politics section because that is where it belongs. Why do taxpayers have to pay for KQ losses?

Does KQ carry our flowers to European markets at a loss so that if we did not own then the flower industry would suffer?

Does it serve a national security function? Would the country be at risk of something if we did not have our own carrier?

Does it fly Kenyans at a discount? and even if it did is it the most competitively priced airline to most destinations out of Nairobi?

What would we suffer as country if we sold KQ to Emirates or Qatar or someone else who knows how to handle that business?


There's absolutely no strategic value for KQ the way it exists currently. In Moi's time there was but right now, no.

KQ has failed to win the hearts of Kenya as a brand or through price. KQ should be cheaper to Kenyans than other airlines. It will lose greatly to the SGR on local once the line is done to Kisumu.

KQ right now is just a Kenyan souvenir, our 'pride' will not allow us to get rid of it but it has no real value. May be we should ask the 'rich' politicians like you-know-who to buy it...

BBI will solve it
:)
Angelica _ann
#7 Posted : Thursday, March 21, 2019 2:48:18 PM
Rank: Elder

Joined: 12/7/2012
Posts: 11,935
Look at the assets (including humans/households) who will suffer if/when KQ folds. Let us think straight and be humane for once!!!
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
Kusadikika
#8 Posted : Thursday, March 21, 2019 3:18:09 PM
Rank: Elder

Joined: 7/22/2008
Posts: 2,721
Angelica _ann wrote:
Look at the assets (including humans/households) who will suffer if/when KQ folds. Let us think straight and be humane for once!!!


How many people does KQ employ?

Whatever number they are does it make sense for the rest of Kenyans to pay them so that they can have jobs while they provide services that we could be buying cheaper from other providers?

hardwood
#9 Posted : Thursday, March 21, 2019 3:37:38 PM
Rank: Elder

Joined: 7/28/2015
Posts: 9,562
Location: Rodi Kopany, Homa Bay
Angelica _ann wrote:
Look at the assets (including humans/households) who will suffer if/when KQ folds. Let us think straight and be humane for once!!!


Recently you told us about a lady who abandoned poultry farming because she was making loses and instead opted to outsource eggs. Are you now saying the lady should have been humane and continued to sink more cash into the enterprise so as to keep her farm workers and feed suppliers happy and employed?
tycho
#10 Posted : Thursday, March 21, 2019 3:40:30 PM
Rank: Elder

Joined: 7/1/2011
Posts: 8,804
Location: Nairobi
Angelica _ann wrote:
Look at the assets (including humans/households) who will suffer if/when KQ folds. Let us think straight and be humane for once!!!


I thought that this was the task of the people entrusted to run it, and the government.

If their thinking and work is sloppy, and even akin to holding Wanjiku at ransom what to do?
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