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Rank: Chief Joined: 1/3/2007 Posts: 18,347 Location: Nairobi
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@ArrestedDev Delta bought very many "old" aircraft (717s and MD-90s) about 4-5 years ago but refurbished them and maintained them well. The logic was great i.e. the cost of financing the old planes was much lower than the additional cost of fuel and maintenance. When the fuel prices fell, the savings (& profits) grew. Naikuni, Mbugua and friends were crooks first and foremost. https://worldairlinenews...ircraft-bubble-comment/
"Delta looks at the entire cost of jet – the purchase price, the maintenance costs, fuel efficiency and other factors – before making decisions. Often, used aircraft make the most economic sense for the airline." "And thanks to Delta’s TechOps aviation maintenance team, used planes can be maintained and retrofitted with entirely new interiors, providing a superior customer experience even though the jet may be a few years old." "Still, Delta will buy new when it makes sense. For example, the airline recently ordered 25 fuel-efficient Airbus A350-900s to fly primarily long-haul trans-Pacific routes starting in 2017." "Less money is tied up in expensive new jets, and instead can be invested in airport facilities, operational performance, new technology and on-board improvements to enhance the customer experience." KQ may not be in a position to do what Delta does but if executed well, a partial fleet of old aircraft can work well. Delta does have the advantage of a strong TechOps and Maintenance team + large number of aircraft to cannibalize for spares as well as replace a "misbehaving" aircraft. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 5/29/2016 Posts: 898 Location: Nairobi
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VituVingiSana wrote:@ArrestedDev Delta bought very many "old" aircraft (717s and MD-90s) about 4-5 years ago but refurbished them and maintained them well. The logic was great i.e. the cost of financing the old planes was much lower than the additional cost of fuel and maintenance. When the fuel prices fell, the savings (& profits) grew. Naikuni, Mbugua and friends were crooks first and foremost. https://worldairlinenews...ircraft-bubble-comment/
"Delta looks at the entire cost of jet – the purchase price, the maintenance costs, fuel efficiency and other factors – before making decisions. Often, used aircraft make the most economic sense for the airline." "And thanks to Delta’s TechOps aviation maintenance team, used planes can be maintained and retrofitted with entirely new interiors, providing a superior customer experience even though the jet may be a few years old." "Still, Delta will buy new when it makes sense. For example, the airline recently ordered 25 fuel-efficient Airbus A350-900s to fly primarily long-haul trans-Pacific routes starting in 2017." "Less money is tied up in expensive new jets, and instead can be invested in airport facilities, operational performance, new technology and on-board improvements to enhance the customer experience." KQ may not be in a position to do what Delta does but if executed well, a partial fleet of old aircraft can work well. Delta does have the advantage of a strong TechOps and Maintenance team + large number of aircraft to cannibalize for spares as well as replace a "misbehaving" aircraft. Not in this day and age. You quoted this previously and I replied. Naikuni bungled KQ big time. It will take time to turn it around once again.
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Rank: Elder Joined: 6/23/2009 Posts: 14,217 Location: nairobi
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ArrestedDev wrote:VituVingiSana wrote:@ArrestedDev Delta bought very many "old" aircraft (717s and MD-90s) about 4-5 years ago but refurbished them and maintained them well. The logic was great i.e. the cost of financing the old planes was much lower than the additional cost of fuel and maintenance. When the fuel prices fell, the savings (& profits) grew. Naikuni, Mbugua and friends were crooks first and foremost. https://worldairlinenews...ircraft-bubble-comment/
"Delta looks at the entire cost of jet – the purchase price, the maintenance costs, fuel efficiency and other factors – before making decisions. Often, used aircraft make the most economic sense for the airline." "And thanks to Delta’s TechOps aviation maintenance team, used planes can be maintained and retrofitted with entirely new interiors, providing a superior customer experience even though the jet may be a few years old." "Still, Delta will buy new when it makes sense. For example, the airline recently ordered 25 fuel-efficient Airbus A350-900s to fly primarily long-haul trans-Pacific routes starting in 2017." "Less money is tied up in expensive new jets, and instead can be invested in airport facilities, operational performance, new technology and on-board improvements to enhance the customer experience." KQ may not be in a position to do what Delta does but if executed well, a partial fleet of old aircraft can work well. Delta does have the advantage of a strong TechOps and Maintenance team + large number of aircraft to cannibalize for spares as well as replace a "misbehaving" aircraft. Not in this day and age. You quoted this previously and I replied. Naikuni bungled KQ big time. It will take time to turn it around once again. It will turn around sooner than you imagine
KQ ABP 4.26
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Rank: Member Joined: 5/29/2016 Posts: 898 Location: Nairobi
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obiero wrote:ArrestedDev wrote:VituVingiSana wrote:@ArrestedDev Delta bought very many "old" aircraft (717s and MD-90s) about 4-5 years ago but refurbished them and maintained them well. The logic was great i.e. the cost of financing the old planes was much lower than the additional cost of fuel and maintenance. When the fuel prices fell, the savings (& profits) grew. Naikuni, Mbugua and friends were crooks first and foremost. https://worldairlinenews...ircraft-bubble-comment/
"Delta looks at the entire cost of jet – the purchase price, the maintenance costs, fuel efficiency and other factors – before making decisions. Often, used aircraft make the most economic sense for the airline." "And thanks to Delta’s TechOps aviation maintenance team, used planes can be maintained and retrofitted with entirely new interiors, providing a superior customer experience even though the jet may be a few years old." "Still, Delta will buy new when it makes sense. For example, the airline recently ordered 25 fuel-efficient Airbus A350-900s to fly primarily long-haul trans-Pacific routes starting in 2017." "Less money is tied up in expensive new jets, and instead can be invested in airport facilities, operational performance, new technology and on-board improvements to enhance the customer experience." KQ may not be in a position to do what Delta does but if executed well, a partial fleet of old aircraft can work well. Delta does have the advantage of a strong TechOps and Maintenance team + large number of aircraft to cannibalize for spares as well as replace a "misbehaving" aircraft. Not in this day and age. You quoted this previously and I replied. Naikuni bungled KQ big time. It will take time to turn it around once again. It will turn around sooner than you imagine The road to recovery is treacherous and long. The probability of posting a profit by the end of this year is almost zero. Air France is ramping up daily services to 5 per week up from I think 3 - @maka, correct me if I am wrong. This mean connections from Europe and North America on Air France and other Sky team partners KQ used to upload in Paris will no longer exist. KQ may be forced to reduce the Paris route weekly frequencies in the near future. Lufthansa already increased daily frequencies to Nairobi. KLM is taking a firm grip of the management to influence decision making in their favour. KQ is also trying to pursue a stupid strategy of targeting only the rich business and leisure travellers and abandoning the lower class of travellers. This is where Ethiopian derives their numbers from - bare economic fares which attracts customers in large numbers. For instance, the Jeddah route was popular with pilgrims and the house maids working in Saudi Arabia. Ethiopian/Qatar/Oman Air will take advantage and upload all those originating/starting their journey in Nairobi and connect them to Jeddah via their respective hubs. I do not know how KQ arrived at the decision to terminate this route yet an E190 can operate efficiently even if the numbers are low.
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Rank: Elder Joined: 6/23/2009 Posts: 14,217 Location: nairobi
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ArrestedDev wrote:obiero wrote:ArrestedDev wrote:VituVingiSana wrote:@ArrestedDev Delta bought very many "old" aircraft (717s and MD-90s) about 4-5 years ago but refurbished them and maintained them well. The logic was great i.e. the cost of financing the old planes was much lower than the additional cost of fuel and maintenance. When the fuel prices fell, the savings (& profits) grew. Naikuni, Mbugua and friends were crooks first and foremost. https://worldairlinenews...ircraft-bubble-comment/
"Delta looks at the entire cost of jet – the purchase price, the maintenance costs, fuel efficiency and other factors – before making decisions. Often, used aircraft make the most economic sense for the airline." "And thanks to Delta’s TechOps aviation maintenance team, used planes can be maintained and retrofitted with entirely new interiors, providing a superior customer experience even though the jet may be a few years old." "Still, Delta will buy new when it makes sense. For example, the airline recently ordered 25 fuel-efficient Airbus A350-900s to fly primarily long-haul trans-Pacific routes starting in 2017." "Less money is tied up in expensive new jets, and instead can be invested in airport facilities, operational performance, new technology and on-board improvements to enhance the customer experience." KQ may not be in a position to do what Delta does but if executed well, a partial fleet of old aircraft can work well. Delta does have the advantage of a strong TechOps and Maintenance team + large number of aircraft to cannibalize for spares as well as replace a "misbehaving" aircraft. Not in this day and age. You quoted this previously and I replied. Naikuni bungled KQ big time. It will take time to turn it around once again. It will turn around sooner than you imagine The road to recovery is treacherous and long. The probability of posting a profit by the end of this year is almost zero. Air France is ramping up daily services to 5 per week up from I think 3 - @maka, correct me if I am wrong. This mean connections from Europe and North America on Air France and other Sky team partners KQ used to upload in Paris will no longer exist. KQ may be forced to reduce the Paris route weekly frequencies in the near future. Lufthansa already increased daily frequencies to Nairobi. KLM is taking a firm grip of the management to influence decision making in their favour. KQ is also trying to pursue a stupid strategy of targeting only the rich business and leisure travellers and abandoning the lower class of travellers. This is where Ethiopian derives their numbers from - bare economic fares which attracts customers in large numbers. For instance, the Jeddah route was popular with pilgrims and the house maids working in Saudi Arabia. Ethiopian/Qatar/Oman Air will take advantage and upload all those originating/starting their journey in Nairobi and connect them to Jeddah via their respective hubs. I do not know how KQ arrived at the decision to terminate this route yet an E190 can operate efficiently even if the numbers are low. Half year results will be out in two weeks time so we can review
KQ ABP 4.26
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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ArrestedDev wrote:obiero wrote:ArrestedDev wrote:VituVingiSana wrote:@ArrestedDev Delta bought very many "old" aircraft (717s and MD-90s) about 4-5 years ago but refurbished them and maintained them well. The logic was great i.e. the cost of financing the old planes was much lower than the additional cost of fuel and maintenance. When the fuel prices fell, the savings (& profits) grew. Naikuni, Mbugua and friends were crooks first and foremost. https://worldairlinenews...ircraft-bubble-comment/
"Delta looks at the entire cost of jet – the purchase price, the maintenance costs, fuel efficiency and other factors – before making decisions. Often, used aircraft make the most economic sense for the airline." "And thanks to Delta’s TechOps aviation maintenance team, used planes can be maintained and retrofitted with entirely new interiors, providing a superior customer experience even though the jet may be a few years old." "Still, Delta will buy new when it makes sense. For example, the airline recently ordered 25 fuel-efficient Airbus A350-900s to fly primarily long-haul trans-Pacific routes starting in 2017." "Less money is tied up in expensive new jets, and instead can be invested in airport facilities, operational performance, new technology and on-board improvements to enhance the customer experience." KQ may not be in a position to do what Delta does but if executed well, a partial fleet of old aircraft can work well. Delta does have the advantage of a strong TechOps and Maintenance team + large number of aircraft to cannibalize for spares as well as replace a "misbehaving" aircraft. Not in this day and age. You quoted this previously and I replied. Naikuni bungled KQ big time. It will take time to turn it around once again. It will turn around sooner than you imagine The road to recovery is treacherous and long. The probability of posting a profit by the end of this year is almost zero. Air France is ramping up daily services to 5 per week up from I think 3 - @maka, correct me if I am wrong. This mean connections from Europe and North America on Air France and other Sky team partners KQ used to upload in Paris will no longer exist. KQ may be forced to reduce the Paris route weekly frequencies in the near future. Lufthansa already increased daily frequencies to Nairobi. KLM is taking a firm grip of the management to influence decision making in their favour. KQ is also trying to pursue a stupid strategy of targeting only the rich business and leisure travellers and abandoning the lower class of travellers. This is where Ethiopian derives their numbers from - bare economic fares which attracts customers in large numbers. For instance, the Jeddah route was popular with pilgrims and the house maids working in Saudi Arabia. Ethiopian/Qatar/Oman Air will take advantage and upload all those originating/starting their journey in Nairobi and connect them to Jeddah via their respective hubs. I do not know how KQ arrived at the decision to terminate this route yet an E190 can operate efficiently even if the numbers are low. And then they want to takeover management of JKIA,KQ better concentrate on strenthening it's key routes which are now under threat from Air France,KLM and Lufthansa Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 5/29/2016 Posts: 898 Location: Nairobi
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obiero wrote:ArrestedDev wrote:obiero wrote:ArrestedDev wrote:VituVingiSana wrote:@ArrestedDev Delta bought very many "old" aircraft (717s and MD-90s) about 4-5 years ago but refurbished them and maintained them well. The logic was great i.e. the cost of financing the old planes was much lower than the additional cost of fuel and maintenance. When the fuel prices fell, the savings (& profits) grew. Naikuni, Mbugua and friends were crooks first and foremost. https://worldairlinenews...ircraft-bubble-comment/
"Delta looks at the entire cost of jet – the purchase price, the maintenance costs, fuel efficiency and other factors – before making decisions. Often, used aircraft make the most economic sense for the airline." "And thanks to Delta’s TechOps aviation maintenance team, used planes can be maintained and retrofitted with entirely new interiors, providing a superior customer experience even though the jet may be a few years old." "Still, Delta will buy new when it makes sense. For example, the airline recently ordered 25 fuel-efficient Airbus A350-900s to fly primarily long-haul trans-Pacific routes starting in 2017." "Less money is tied up in expensive new jets, and instead can be invested in airport facilities, operational performance, new technology and on-board improvements to enhance the customer experience." KQ may not be in a position to do what Delta does but if executed well, a partial fleet of old aircraft can work well. Delta does have the advantage of a strong TechOps and Maintenance team + large number of aircraft to cannibalize for spares as well as replace a "misbehaving" aircraft. Not in this day and age. You quoted this previously and I replied. Naikuni bungled KQ big time. It will take time to turn it around once again. It will turn around sooner than you imagine The road to recovery is treacherous and long. The probability of posting a profit by the end of this year is almost zero. Air France is ramping up daily services to 5 per week up from I think 3 - @maka, correct me if I am wrong. This mean connections from Europe and North America on Air France and other Sky team partners KQ used to upload in Paris will no longer exist. KQ may be forced to reduce the Paris route weekly frequencies in the near future. Lufthansa already increased daily frequencies to Nairobi. KLM is taking a firm grip of the management to influence decision making in their favour. KQ is also trying to pursue a stupid strategy of targeting only the rich business and leisure travellers and abandoning the lower class of travellers. This is where Ethiopian derives their numbers from - bare economic fares which attracts customers in large numbers. For instance, the Jeddah route was popular with pilgrims and the house maids working in Saudi Arabia. Ethiopian/Qatar/Oman Air will take advantage and upload all those originating/starting their journey in Nairobi and connect them to Jeddah via their respective hubs. I do not know how KQ arrived at the decision to terminate this route yet an E190 can operate efficiently even if the numbers are low. Half year results will be out in two weeks time so we can review Most likely it is still a loss. There might be an increase in the operating profit but the interest expense will wipe everything out resulting in a net loss position.
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Rank: Elder Joined: 6/23/2009 Posts: 14,217 Location: nairobi
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ArrestedDev wrote:obiero wrote:ArrestedDev wrote:obiero wrote:ArrestedDev wrote:VituVingiSana wrote:@ArrestedDev Delta bought very many "old" aircraft (717s and MD-90s) about 4-5 years ago but refurbished them and maintained them well. The logic was great i.e. the cost of financing the old planes was much lower than the additional cost of fuel and maintenance. When the fuel prices fell, the savings (& profits) grew. Naikuni, Mbugua and friends were crooks first and foremost. https://worldairlinenews...ircraft-bubble-comment/
"Delta looks at the entire cost of jet – the purchase price, the maintenance costs, fuel efficiency and other factors – before making decisions. Often, used aircraft make the most economic sense for the airline." "And thanks to Delta’s TechOps aviation maintenance team, used planes can be maintained and retrofitted with entirely new interiors, providing a superior customer experience even though the jet may be a few years old." "Still, Delta will buy new when it makes sense. For example, the airline recently ordered 25 fuel-efficient Airbus A350-900s to fly primarily long-haul trans-Pacific routes starting in 2017." "Less money is tied up in expensive new jets, and instead can be invested in airport facilities, operational performance, new technology and on-board improvements to enhance the customer experience." KQ may not be in a position to do what Delta does but if executed well, a partial fleet of old aircraft can work well. Delta does have the advantage of a strong TechOps and Maintenance team + large number of aircraft to cannibalize for spares as well as replace a "misbehaving" aircraft. Not in this day and age. You quoted this previously and I replied. Naikuni bungled KQ big time. It will take time to turn it around once again. It will turn around sooner than you imagine The road to recovery is treacherous and long. The probability of posting a profit by the end of this year is almost zero. Air France is ramping up daily services to 5 per week up from I think 3 - @maka, correct me if I am wrong. This mean connections from Europe and North America on Air France and other Sky team partners KQ used to upload in Paris will no longer exist. KQ may be forced to reduce the Paris route weekly frequencies in the near future. Lufthansa already increased daily frequencies to Nairobi. KLM is taking a firm grip of the management to influence decision making in their favour. KQ is also trying to pursue a stupid strategy of targeting only the rich business and leisure travellers and abandoning the lower class of travellers. This is where Ethiopian derives their numbers from - bare economic fares which attracts customers in large numbers. For instance, the Jeddah route was popular with pilgrims and the house maids working in Saudi Arabia. Ethiopian/Qatar/Oman Air will take advantage and upload all those originating/starting their journey in Nairobi and connect them to Jeddah via their respective hubs. I do not know how KQ arrived at the decision to terminate this route yet an E190 can operate efficiently even if the numbers are low. Half year results will be out in two weeks time so we can review Most likely it is still a loss. There might be an increase in the operating profit but the interest expense will wipe everything out resulting in a net loss position. Remember over 70B is off the balances as debt converted to equity from November last year.. Coupled with longer tenure for the remaining debt balances
KQ ABP 4.26
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Rank: Member Joined: 5/29/2016 Posts: 898 Location: Nairobi
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obiero wrote:ArrestedDev wrote:obiero wrote:ArrestedDev wrote:obiero wrote:ArrestedDev wrote:VituVingiSana wrote:@ArrestedDev Delta bought very many "old" aircraft (717s and MD-90s) about 4-5 years ago but refurbished them and maintained them well. The logic was great i.e. the cost of financing the old planes was much lower than the additional cost of fuel and maintenance. When the fuel prices fell, the savings (& profits) grew. Naikuni, Mbugua and friends were crooks first and foremost. https://worldairlinenews...ircraft-bubble-comment/
"Delta looks at the entire cost of jet – the purchase price, the maintenance costs, fuel efficiency and other factors – before making decisions. Often, used aircraft make the most economic sense for the airline." "And thanks to Delta’s TechOps aviation maintenance team, used planes can be maintained and retrofitted with entirely new interiors, providing a superior customer experience even though the jet may be a few years old." "Still, Delta will buy new when it makes sense. For example, the airline recently ordered 25 fuel-efficient Airbus A350-900s to fly primarily long-haul trans-Pacific routes starting in 2017." "Less money is tied up in expensive new jets, and instead can be invested in airport facilities, operational performance, new technology and on-board improvements to enhance the customer experience." KQ may not be in a position to do what Delta does but if executed well, a partial fleet of old aircraft can work well. Delta does have the advantage of a strong TechOps and Maintenance team + large number of aircraft to cannibalize for spares as well as replace a "misbehaving" aircraft. Not in this day and age. You quoted this previously and I replied. Naikuni bungled KQ big time. It will take time to turn it around once again. It will turn around sooner than you imagine The road to recovery is treacherous and long. The probability of posting a profit by the end of this year is almost zero. Air France is ramping up daily services to 5 per week up from I think 3 - @maka, correct me if I am wrong. This mean connections from Europe and North America on Air France and other Sky team partners KQ used to upload in Paris will no longer exist. KQ may be forced to reduce the Paris route weekly frequencies in the near future. Lufthansa already increased daily frequencies to Nairobi. KLM is taking a firm grip of the management to influence decision making in their favour. KQ is also trying to pursue a stupid strategy of targeting only the rich business and leisure travellers and abandoning the lower class of travellers. This is where Ethiopian derives their numbers from - bare economic fares which attracts customers in large numbers. For instance, the Jeddah route was popular with pilgrims and the house maids working in Saudi Arabia. Ethiopian/Qatar/Oman Air will take advantage and upload all those originating/starting their journey in Nairobi and connect them to Jeddah via their respective hubs. I do not know how KQ arrived at the decision to terminate this route yet an E190 can operate efficiently even if the numbers are low. Half year results will be out in two weeks time so we can review Most likely it is still a loss. There might be an increase in the operating profit but the interest expense will wipe everything out resulting in a net loss position. Remember over 70B is off the balances as debt converted to equity from November last year.. Coupled with longer tenure for the remaining debt balances For your information, KQ is still highly leveraged. There is a very huge debt in the books. I also believe the local banks have since advanced further loans to KQ. Just be optimistic but the road to recovery is long. Last December KQ failed to meet some loan commitments.
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Rank: Chief Joined: 1/3/2007 Posts: 18,347 Location: Nairobi
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Canadian Jet Manufacturer Bombardier Commercial Aircraft on Wednesday announced that it had signed a firm order for four new CRJ900 regional jets with Uganda National Airlines Company.The deal is part of Uganda's effort to revive its defunct National Airline.Based on the list price for the CRJ900 aircraft, the firm order is valued at approximately USD 190 m (about UGX 700 bn).“We congratulate the Government of Uganda for the revival of its national flag carrier, and are thrilled that the new airline has selected Bombardier and the CRJ900 regional jets for its upcoming debut,” said Jean-Paul Boutibou, Vice President, Sales, Middle-East and Africa, Bombardier Commercial Aircraft in a statement issued on Wednesday evening.(Source: Daily Monitor) Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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