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Kenya Airways...why ignore..
VituVingiSana
#12041 Posted : Saturday, March 30, 2019 8:29:40 AM
Rank: Chief


Joined: 1/3/2007
Posts: 18,131
Location: Nairobi
I want KQ to succeed but the current set-up with KAWU, KALPA, politicians and others holding it hostage isn't the way to go.

The "Old KQ" in receivership can't be milked by these malcontents & tenderpreneurs. The Taxpayer should NOT be on the hook for more losses.

The "New KQ" with an independent board/management, held accountable, should be allowed to chart its own course. Let ALL Kenyan airlines benefit from lower taxes on fuel, spare parts, planes, etc especially for international flights so they can compete with RwandAir, Emirates, BA, etc.

Or ZERO tax on all fuel, spares, planes, etc that are used for international flight segments. Let's take a 777 which is solely used for international flights. Zero tax on the plane, engines, fuel, consumables, etc.

JKIA can reduce the fees for the aircraft/take-offs/landings by improving the efficiencies wherever possible.

New KQ can look at Mombasa as an alternate hub. I think Qatar, RwandAir and Ethiopian fly direct to Mombasa. Convince the EAC countries to invest in New KQ instead of their own airlines. Revive the name "EA Airlines/Airways" so they don't feel it's just Kenya Airways.

Our market is too small to support 4 national airlines.
Air Uganda
Air Tanzania
RwandAir
KQ

How many East African citizens/taxpayers can afford to fly?
Why should non-users pay to support/subsidize these airlines?

Countries that want flights that are not economically viable should be ready to pay for the flights. They should subsidize EAA for those segments.

Anyway, I know the above is not likely to happen any time soon but the Kenyan Taxpayer should be off the hook going forward.

I am willing to take my lumps/write-offs in KQLC and through Treasury for the past if KQ has a better tomorrow.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
ArrestedDev
#12042 Posted : Saturday, March 30, 2019 9:13:07 AM
Rank: Member


Joined: 5/29/2016
Posts: 898
Location: Nairobi
maka wrote:
obiero wrote:
ArrestedDev wrote:
VituVingiSana wrote:

Based on discussions with KQ management though, KPMG said the carrier was in breach of certain undisclosed “financial covenants” as at June 2018, and received waivers from lenders for the financial year ending December 31, 2018.

The report recommends that JKIA be run by a private-sector operator to maximise revenues and profits.




I guess Dec 2018 results have been misquoted in the article. KPMG could not have accessed the 2018 results since they are not yet released officially.

As far as I am concerned it is the 2017 results which had such a statement. It implies they were in arrears with some loan repayments.

I do not think after the restructuring there were further loan default cases since a large portion of the debt was converted to equity.

I feel sad and sorry for the KQ board and management, Ngunze was hounded out in a huff and now the people are demanding for more heads to roll. Everyone in the streets including hawkers, news anchors, politicians, cobblers and @vvs seem to imagine that they have better ability to successfully turn around KQ than Sebastian and Michael.. For sure the next CEO will struggle, based on overall negative energy circumstances. As often stated here, 30% of KQ staff must be culled to get a culture shift. The problem with KQ is thug like organizational culture supported by a blind KAWU & KALPA, not fundamentals of finance


As usual you are wrong... Ok on Mbuvi you are right he was duped...The real story about him was that CS Macharia never liked him... So he vanged up with Gichinga and co used KALPA to make things very difficult for him... He had to step aside.... Mbuvi's idea of shrinking then expanding woukd habe worked? Sebastian's all out expansion drive will take KQ deeper into debt and crazy losses will be loaded.

Organizational culture has nothing to do with the mess at KQ... Like I said earlier staff morale is pretty low imagine never having an increment from 2012...7 years... Someone said here the staff can opt to leave... Well a sizeable number have left leaving you with greenhorns who cant handle shit.... Address the underlying issues @Obiero...Please.


Ngunze was like a kid in that job. I have said here several times. Even Mpigs knows very well the highly sought landing slot should not have been sold at all.

Without expansion, no increase in revenue which translate to the death of KQ.
ArrestedDev
#12043 Posted : Saturday, March 30, 2019 9:18:31 AM
Rank: Member


Joined: 5/29/2016
Posts: 898
Location: Nairobi
VituVingiSana wrote:
ArrestedDev wrote:
VituVingiSana wrote:

Based on discussions with KQ management though, KPMG said the carrier was in breach of certain undisclosed “financial covenants” as at June 2018, and received waivers from lenders for the financial year ending December 31, 2018.

The report recommends that JKIA be run by a private-sector operator to maximise revenues and profits.




I guess Dec 2018 results have been misquoted in the article. KPMG could not have accessed the 2018 results since they are not yet released officially.

As far as I am concerned it is the 2017 results which had such a statement. It implies they were in arrears with some loan repayments.

I do not think after the restructuring there were further loan default cases since a large portion of the debt was converted to equity.
Can't they get information about waivers for FY 2018 without having knowledge of the FY 2018 results/performance?


They can’t. Only when the financial statements are released officially. Deloitte have KQ results in their possession and they can’t leak to KPMG.

The KPMG report is based on the JKIA proposal and the 2017 results.
VituVingiSana
#12044 Posted : Saturday, March 30, 2019 9:51:07 AM
Rank: Chief


Joined: 1/3/2007
Posts: 18,131
Location: Nairobi
ArrestedDev wrote:
VituVingiSana wrote:
ArrestedDev wrote:
VituVingiSana wrote:

Based on discussions with KQ management though, KPMG said the carrier was in breach of certain undisclosed “financial covenants” as at June 2018, and received waivers from lenders for the financial year ending December 31, 2018.

The report recommends that JKIA be run by a private-sector operator to maximise revenues and profits.




I guess Dec 2018 results have been misquoted in the article. KPMG could not have accessed the 2018 results since they are not yet released officially.

As far as I am concerned it is the 2017 results which had such a statement. It implies they were in arrears with some loan repayments.

I do not think after the restructuring there were further loan default cases since a large portion of the debt was converted to equity.
Can't they get information about waivers for FY 2018 without having knowledge of the FY 2018 results/performance?


They can’t. Only when the financial statements are released officially. Deloitte have KQ results in their possession and they can’t leak to KPMG.

The KPMG report is based on the JKIA proposal and the 2017 results.

"Based on discussions with KQ management though, KPMG said the carrier was in breach of certain undisclosed “financial covenants” as at June 2018, and received waivers from lenders for the financial year ending December 31, 2018."
The lenders may have given the waivers earlier in the year. Usually, one doesn't seek waivers on the last day if you things are going to be dire.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
VituVingiSana
#12045 Posted : Saturday, March 30, 2019 9:53:54 AM
Rank: Chief


Joined: 1/3/2007
Posts: 18,131
Location: Nairobi
Does anyone have the list of which banks have shares in KQLC and how many shares?

Sadly, Equity and I&M have shares in KQLC. I want to calculate the provision they need to make.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
ArrestedDev
#12046 Posted : Saturday, March 30, 2019 2:55:00 PM
Rank: Member


Joined: 5/29/2016
Posts: 898
Location: Nairobi
VituVingiSana wrote:
ArrestedDev wrote:
VituVingiSana wrote:
ArrestedDev wrote:
VituVingiSana wrote:

Based on discussions with KQ management though, KPMG said the carrier was in breach of certain undisclosed “financial covenants” as at June 2018, and received waivers from lenders for the financial year ending December 31, 2018.

The report recommends that JKIA be run by a private-sector operator to maximise revenues and profits.




I guess Dec 2018 results have been misquoted in the article. KPMG could not have accessed the 2018 results since they are not yet released officially.

As far as I am concerned it is the 2017 results which had such a statement. It implies they were in arrears with some loan repayments.

I do not think after the restructuring there were further loan default cases since a large portion of the debt was converted to equity.
Can't they get information about waivers for FY 2018 without having knowledge of the FY 2018 results/performance?


They can’t. Only when the financial statements are released officially. Deloitte have KQ results in their possession and they can’t leak to KPMG.

The KPMG report is based on the JKIA proposal and the 2017 results.

"Based on discussions with KQ management though, KPMG said the carrier was in breach of certain undisclosed “financial covenants” as at June 2018, and received waivers from lenders for the financial year ending December 31, 2018."
The lenders may have given the waivers earlier in the year. Usually, one doesn't seek waivers on the last day if you things are going to be dire.


Let’s wait and see the 2018 results.

No details were disclosed to KPMG.

https://youtu.be/dCirVh-9GUA



obiero
#12047 Posted : Saturday, March 30, 2019 7:07:11 PM
Rank: Elder


Joined: 6/23/2009
Posts: 13,564
Location: nairobi
ArrestedDev wrote:
VituVingiSana wrote:
ArrestedDev wrote:
VituVingiSana wrote:
ArrestedDev wrote:
VituVingiSana wrote:

Based on discussions with KQ management though, KPMG said the carrier was in breach of certain undisclosed “financial covenants” as at June 2018, and received waivers from lenders for the financial year ending December 31, 2018.

The report recommends that JKIA be run by a private-sector operator to maximise revenues and profits.




I guess Dec 2018 results have been misquoted in the article. KPMG could not have accessed the 2018 results since they are not yet released officially.

As far as I am concerned it is the 2017 results which had such a statement. It implies they were in arrears with some loan repayments.

I do not think after the restructuring there were further loan default cases since a large portion of the debt was converted to equity.
Can't they get information about waivers for FY 2018 without having knowledge of the FY 2018 results/performance?


They can’t. Only when the financial statements are released officially. Deloitte have KQ results in their possession and they can’t leak to KPMG.

The KPMG report is based on the JKIA proposal and the 2017 results.

"Based on discussions with KQ management though, KPMG said the carrier was in breach of certain undisclosed “financial covenants” as at June 2018, and received waivers from lenders for the financial year ending December 31, 2018."
The lenders may have given the waivers earlier in the year. Usually, one doesn't seek waivers on the last day if you things are going to be dire.


Let’s wait and see the 2018 results.

No details were disclosed to KPMG.

https://youtu.be/dCirVh-9GUA


Speak less.. Hii nchi iko na wenyewe. Resolution number 6 by Mtongoria keeps me bullish.. Refer to my comments on the interest rate cap debate and prior knowledge that the presidential accent was guaranteed, three months before the fact..





COOP 70,000 ABP 15.20; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
Spikes
#12048 Posted : Sunday, March 31, 2019 9:45:35 AM
Rank: Elder


Joined: 9/20/2015
Posts: 2,811
Location: Mombasa
VituVingiSana wrote:
Does anyone have the list of which banks have shares in KQLC and how many shares?

Sadly, Equity and I&M have shares in KQLC. I want to calculate the provision they need to make.


@Obiero is leveraged well...he can share the details,like a mortician, with us. Leveraged so astutely that his portfolio is roaring to All Time Low [ATL] of nearly 80% down the bottomless pit.
Laughing out loudly Laughing out loudly Laughing out loudly
John 5:17 But Jesus replied, “My Father is always working, and so am I.”
VituVingiSana
#12049 Posted : Wednesday, April 03, 2019 7:59:54 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,131
Location: Nairobi
Jambojet to lease four planes in expansion plan
https://www.businessdail...53776-o5cymj/index.html

Jambojet was in 2017 granted regulatory approval to fly to 16 routes including Entebbe, Addis Ababa, Dar es Salaam, Zanzibar, Kilimanjaro, Mwanza, Kigali, Juba, Bujumbura, Hargeisa, Mogadishu, Goma, Kisangani and Moroni.

>>> Isn't JJ competing directly with KQ on some routes?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#12050 Posted : Wednesday, April 03, 2019 8:02:28 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,702
Location: NAIROBI
VituVingiSana wrote:
Jambojet to lease four planes in expansion plan
https://www.businessdail...53776-o5cymj/index.html

Jambojet was in 2017 granted regulatory approval to fly to 16 routes including Entebbe, Addis Ababa, Dar es Salaam, Zanzibar, Kilimanjaro, Mwanza, Kigali, Juba, Bujumbura, Hargeisa, Mogadishu, Goma, Kisangani and Moroni.

>>> Isn't JJ competing directly with KQ on some routes?


Not necessarily,some routes KQ will surrender to Jambo jet and leave only a few planes.
KQ will then focus more on long haul flights/routes
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
VituVingiSana
#12051 Posted : Wednesday, April 03, 2019 9:02:21 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,131
Location: Nairobi
Ericsson wrote:
VituVingiSana wrote:
Jambojet to lease four planes in expansion plan
https://www.businessdail...53776-o5cymj/index.html

Jambojet was in 2017 granted regulatory approval to fly to 16 routes including Entebbe, Addis Ababa, Dar es Salaam, Zanzibar, Kilimanjaro, Mwanza, Kigali, Juba, Bujumbura, Hargeisa, Mogadishu, Goma, Kisangani and Moroni.

>>> Isn't JJ competing directly with KQ on some routes?


Not necessarily,some routes KQ will surrender to Jambo jet and leave only a few planes.
KQ will then focus more on long haul flights/routes
What about the "premium passengers"?
Remember the hissy fit the Burundians threw?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
hardwood
#12052 Posted : Wednesday, April 03, 2019 9:06:05 PM
Rank: Elder


Joined: 7/28/2015
Posts: 9,562
Location: Rodi Kopany, Homa Bay
VituVingiSana wrote:
Jambojet to lease four planes in expansion plan
https://www.businessdail...53776-o5cymj/index.html

Jambojet was in 2017 granted regulatory approval to fly to 16 routes including Entebbe, Addis Ababa, Dar es Salaam, Zanzibar, Kilimanjaro, Mwanza, Kigali, Juba, Bujumbura, Hargeisa, Mogadishu, Goma, Kisangani and Moroni.

>>> Isn't JJ competing directly with KQ on some routes?


Tsavo Ltd and other leasers to smile all the way to the bank as @obiero & co are skinned alive.
Ericsson
#12053 Posted : Thursday, April 04, 2019 2:13:34 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,702
Location: NAIROBI
VituVingiSana wrote:
Ericsson wrote:
VituVingiSana wrote:
Jambojet to lease four planes in expansion plan
https://www.businessdail...53776-o5cymj/index.html

Jambojet was in 2017 granted regulatory approval to fly to 16 routes including Entebbe, Addis Ababa, Dar es Salaam, Zanzibar, Kilimanjaro, Mwanza, Kigali, Juba, Bujumbura, Hargeisa, Mogadishu, Goma, Kisangani and Moroni.

>>> Isn't JJ competing directly with KQ on some routes?


Not necessarily,some routes KQ will surrender to Jambo jet and leave only a few planes.
KQ will then focus more on long haul flights/routes
What about the "premium passengers"?
I agree with you here that they will still need to maintain the KQ flights for this customers
Remember the hissy fit the Burundians threw? Ohh yes

Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
obiero
#12054 Posted : Friday, April 05, 2019 6:33:27 AM
Rank: Elder


Joined: 6/23/2009
Posts: 13,564
Location: nairobi
I have never anticipated full year results release with this much anxiety, I can even hear myself breathe

COOP 70,000 ABP 15.20; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
snifadog
#12055 Posted : Friday, April 05, 2019 7:59:45 AM
Rank: Member


Joined: 6/6/2016
Posts: 165
Location: Nairobi
waiting on this thing to resurrect is like waiting on the second coming of our saviour Lord Jesus Christ.. tulia
littledove
#12056 Posted : Friday, April 05, 2019 8:27:12 AM
Rank: Veteran


Joined: 7/1/2014
Posts: 906
Location: sky
obiero wrote:
I have never anticipated full year results release with this much anxiety, I can even hear myself breathe

meanwhile treasury secures 20b loan for kq business daily today
There are only two emotions in the stock market, fear and hope. The problem is, you hope when you should fear and fear when you should hope
Ericsson
#12057 Posted : Friday, April 05, 2019 8:35:47 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,702
Location: NAIROBI
littledove wrote:
obiero wrote:
I have never anticipated full year results release with this much anxiety, I can even hear myself breathe

meanwhile treasury secures 20b loan for kq business daily today


Things are thick;taking a loan to repay another loan
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#12058 Posted : Friday, April 05, 2019 8:43:49 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,702
Location: NAIROBI
littledove wrote:
obiero wrote:
I have never anticipated full year results release with this much anxiety, I can even hear myself breathe

meanwhile treasury secures 20b loan for kq business daily today


Treasury has taken a sh.20bn loan to help Kenya Airways repay another loan it took from AFREXIM Bank two years ago.
The new 10-year loan was borrowed in June last year from Eastern and Southern Africa Trade Development Bank
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
xxxxx
#12059 Posted : Friday, April 05, 2019 9:04:37 AM
Rank: Member


Joined: 3/20/2008
Posts: 503
Ericsson wrote:
littledove wrote:
obiero wrote:
I have never anticipated full year results release with this much anxiety, I can even hear myself breathe

meanwhile treasury secures 20b loan for kq business daily today


Treasury has taken a sh.20bn loan to help Kenya Airways repay another loan it took from AFREXIM Bank two years ago.
The new 10-year loan was borrowed in June last year from Eastern and Southern Africa Trade Development Bank


Sasa if any wazuan makes money from kq, it will be a pyrrhic victory at best. So saaadddd
cyruskulei
#12060 Posted : Friday, April 05, 2019 10:52:32 AM
Rank: Member


Joined: 3/9/2010
Posts: 320
Location: kenya
obiero wrote:
I have never anticipated full year results release with this much anxiety, I can even hear myself breathe


Brick wall Brick wall Brick wall Brick wall
Work hard at your job and you can make a living. Work hard on yourself and you can make a fortune.

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