ArrestedDev wrote:Zichi wrote:ArrestedDev wrote:obiero wrote:ArrestedDev wrote:sparkly wrote:maka wrote:maka wrote:lochaz-index wrote:Boeing's stock price has plunged to $97 from highs of about $440 in 2019 in the type of moves bankruptcies are made of. For KQ it is the case of a broke GoK attempting to save a broke SOE...I wouldn't count on it.
Things are extremely bad....Totally grounding of the entire fleet is imminent....
No comments!
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A CEO who thinks like this is not fit to drive this Company out of the bad management it has been through for so many years.
What about employees who are living from hand to mouth, relying from paycheck to paycheck?
Salary reduction should apply to senior executives only.
What they need to do is to ask for a bailout from the government. This is the only way out.
Reducing salaries of junior employees is a drop in the ocean. What about lease costs for planes that will be parked for months? Does Allan want to tell us the savings from the salaries is enough to service the lease costs and other loans.
A serious executive will negotiate at first instance with banks on the loans they are servicing and aircraft lessors regarding ways to defer the monthly repayments.
The letter above addressed to the employees does not mention of such a discussion, only a sentence talks about the government.
By increasing his paycut by 5% to 80% is just laughable.
80% pay cut isn't laughable.. The staff were always the problem at KQ
Just 5% to 80% is just PR theatrics.
His paycut increased from 35% to 80%. Only essential payments to be made, others are deferred. Talks with Government on extending a line of credit, talks with banks and saccoa on a 6 month moratorium for loans.
With other airlines sending people home on unpaid leave I think we should be fair to Allan for this step. A slice of cake is better than no cake at all. Huku sand pit engineer's have been sent home on two weeks unpaid leave-with a possibility of it being extended...other groups being laid off...
Not loans for employees. Management should direct energy towards aircraft loans and monthly lease costs.
Developed countries rolling out stimulus packages already. Employees in those countries can get unemployment benefits.
Kenya is a different case here. Junior employees does not earn much.
This move should be taken as the the last resort. I need to see Allan telling us that he has managed to convince NCBA to defer loan repayments for KQ with immediate effect.
We don’t want a situation where poor employees are being targeted. We are talking of employees who have never seen a pay rise for years now
Allan is not a miracle worker but good luck to him.
The payments of loans can be suspended. NCBA ata-do?
As much as one pities the employees, where's the money? [GoK?]
Can Allan convince the banks to lend more to KQ to keep paying salaries and other costs?
From the bank's perspective:
Does the bank lend more to a firm that is dying, hasn't made a profit in 7 years and is guaranteed to lose money for the next 6 months?
The bank has shares in the firm worth ZERO unless a broke GoK makes them whole.
The bank has made huge loans that are not being serviced (NPLs, ECL).
Kenyan banks are going to have to restructure loans worth billions in 2020/2021. They will have to increase NPLs and ECLs for properties, businesses, tourism, personal loans, etc. Without a government guarantee why would they lend to what's a basket case.
I have stopped beating up on KQ and @Obiero. I feel for KQ. It just doesn't get a break. We should look at a REGIONAL airline that accepts its primary purpose is connecting the region but not profits. No need for KQ+TZ+UG+RW. Perhaps ET can join up to create a well-run regional airline that connects the countries to the entire world.
Even Warren Buffett who was against investing in airlines, went into HEALTHY airlines as a shareholder in a big way and has now taken a huge hit.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett