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What is the strategic importance of KQ?
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guka
#31 Posted : Friday, March 22, 2019 8:22:40 PM
Rank: New-farer

Joined: 2/26/2018
Posts: 17
Sides of the same coin. The reason as to why even this has been brought up is because some think that full ownership(fully paid for as how they refer to it) is important. The value being placed in fully owning aircraft is based on the thought that fully owning an entire fleet is the holy grail or requirement to run successfully. The fact thay KQ is still making leasing payments for 17 planes in their fleet does not mean they are not assets in their books. Taking an asset finance loan does not make you less owner or non owner. In markets like the US people rarely fork out a big check to buy a car. You make monthly payments also giving you more flexibility if you want to get rid of it in 3 years and get a newer version. So saying they only own 4(actually 3 as this is what is fully paid for) is disingenuous when in reality they are making payments for 17 other planes.

Lastly, one needs a mix of leased planes and fully owned planes, and other on some asset finance arrangement on the way to full ownership. I am surprised most have not used this same argument against Jambo Jet which only operates leased planes.
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VituVingiSana
#32 Posted : Sunday, March 24, 2019 12:42:16 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,347
Location: Nairobi
hardwood wrote:
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?

Hard Tackle!
Laughing out loudly Laughing out loudly Laughing out loudly

Also keep Uchumi open.
And Mumias.
And NBK.

Why not bail out Nakumatt to save the jobs of the 100s of workers?
Or ARM?
Or any failing firm?

Don't leave out Chase Bank and Imperial Bank.

Just tax the taxpayers a little more.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Ericsson
#33 Posted : Sunday, March 24, 2019 7:16:10 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
Corruption,looting and mediocracy won't allow kq to recover
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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777
#34 Posted : Tuesday, March 26, 2019 9:14:22 AM
Rank: Hello

Joined: 5/4/2016
Posts: 2
Location: Kenya
Inability to run the airline is not the same as the airline is useless. The notion being peddled around that Kenya Airways shouldn't be bailed out is insincere. The airline cannot only be seen from the prism of profits. As a matter of fact, some of the noisiest people here don't fly the airline, aren't employed by the airline and certainly don't own a piece of the airline except through GoK, therefore they would only be discussing the airline from a ticket cost standpoint.

Kenya Airways isn't in the business of owning aircraft. If they could fly you in a hot-air balloon to Cairo, safely, efficiently and on time, they would do it. Business in Kenya prevails inspite of Government. Not because of it. In this very rare occassion that Government is willing to come in, let it do so.

What is the opportunity of cost of not having the airline?
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snifadog
#35 Posted : Tuesday, March 26, 2019 11:39:55 AM
Rank: Member

Joined: 6/6/2016
Posts: 167
Location: Nairobi
Ericsson wrote:
Corruption,looting and mediocracy won't allow kq to recover


This and this here. All other arguments is only verbal gymnastics
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sparkly
#36 Posted : Tuesday, March 26, 2019 12:37:51 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
777 wrote:
Inability to run the airline is not the same as the airline is useless. The notion being peddled around that Kenya Airways shouldn't be bailed out is insincere. The airline cannot only be seen from the prism of profits. As a matter of fact, some of the noisiest people here don't fly the airline, aren't employed by the airline and certainly don't own a piece of the airline except through GoK, therefore they would only be discussing the airline from a ticket cost standpoint.

Kenya Airways isn't in the business of owning aircraft. If they could fly you in a hot-air balloon to Cairo, safely, efficiently and on time, they would do it. Business in Kenya prevails inspite of Government. Not because of it. In this very rare occassion that Government is willing to come in, let it do so.

What is the opportunity of cost of not having the airline?



So you joined Wazua in 2016 but made your maiden post on a KQ thread today. We see your sincerity Applause Applause Applause
Life is short. Live passionately.
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mv_ufanisi
#37 Posted : Tuesday, March 26, 2019 2:41:09 PM
Rank: Member

Joined: 1/15/2010
Posts: 625
KQ is a strategic asset of the Republic of Kenya. Saying that we don't need it, is like cutting your nose to spite your face or throwing out the baby with the bath water.
KQ creates a tremendous amount of value for the country and especially for the GoK than can be measured by the profits or losses it generates internally. KQ could be losing money as a company but the country or GoK still comes out net positive. This is because of the second order effects of having a functional airline.
Measuring KQ purely on the profits or losses it generates internally is like measuring the value of a road purely on the amount of toll collected on it. It's very short sighted.
Having said that, we need a well managed, functional national airline free of corruption. No one disputes that. What we need to focus on is to put in place the right structures and investment to make that work.
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777
#38 Posted : Tuesday, March 26, 2019 3:42:36 PM
Rank: Hello

Joined: 5/4/2016
Posts: 2
Location: Kenya
sparkly wrote:
777 wrote:
Inability to run the airline is not the same as the airline is useless. The notion being peddled around that Kenya Airways shouldn't be bailed out is insincere. The airline cannot only be seen from the prism of profits. As a matter of fact, some of the noisiest people here don't fly the airline, aren't employed by the airline and certainly don't own a piece of the airline except through GoK, therefore they would only be discussing the airline from a ticket cost standpoint.

Kenya Airways isn't in the business of owning aircraft. If they could fly you in a hot-air balloon to Cairo, safely, efficiently and on time, they would do it. Business in Kenya prevails inspite of Government. Not because of it. In this very rare occassion that Government is willing to come in, let it do so.

What is the opportunity of cost of not having the airline?



So you joined Wazua in 2016 but made your maiden post on a KQ thread today. We see your sincerity Applause Applause Applause



The winning principle has always been to talk less and read more
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