well...

My bad, had not realized Mwariri and Mathuka is the same person

Say it aint so, my buloddah. You are getting MASSACRED in this market. Flee this casino before it is too late!

Sale and leaseback. I think this is a good way to go.

Ideally the leasing cost per anuum should not be above 30% of the sales price.
When they sell,they will get a lump sum money which they can then use for something else like paying down debt.
Leasing is like renting which means KQ is saved from incurring operational and maintenance costs with the hope that the revenue they get is able to cater for the leasing costs.
NB:Not all the aircrafts being sold will they lease back.

Think of it like when corporates sell buildings then lease back e.g EABL with its HQ,Standard Chartered bank when they sold the former Head Office along Moi Avenue,Uchumi and Aga Khan walk building etc.

I am very sure all the Dreamliners will be leased back.

The proceeds might go towards settling the outstanding loans used to acquire these planes.

Lease costs will be covered by KQ internal revenue and not the proceeds from the sale.

If the sale is successful, KQ loan book will reduce dramatically which translates to lower finance costs in the long run. There might be one off penalties to be incurred to terminate the loan contracts but this is minimal and does not outweigh the cost/burden being borne by KQ right now.

Have you factored depreciation?

KQ at 2.30 per share

Quietly...

https://www.standardmedi...ps-flying-to-gabon-benin