I agree with the strategy. I will also slowly work towards moving to other counters part of my investment i had made in KQ. Its underlying business, beneath the cloud of the fuel hedge gains, doesnt instill in me alot of confidence. But, will continue to hold some few shares in it, a reflection of the remaining confidence i have in the company.

@vvs any potential lawsuit from the Doula crash???

Lower oil prices are BETTER for KQ... hedges notwithstanding!!!

1) Only a certain portion is hedged so it is better to have LOW oil prices...
2) Lower oil prices means cheaper hedges going forward...
3) Cashflow benefits as well since hedges require cash to be used as security...
4) Lower oil prices means hedges not always needed...

I'm just wondering where KQ's future growth will come from with other major airlines now looking at Africa. I think where they miss the point is on service delivery. You can use any aircraft but what you remember is the experience.

@2012 - Great point...

KQ has failed in service delivery... but it has succeeded in 2 respects:

- Extensive network vs other African airlines (except SAA & Ethiopian)
- No state support (SAA is subsidised. Ethiopian is vague on this)

Whereas KQ needs to shape up... the Kenya government needs to improve JKIA. Soon. Both SAA & Ethiopian fly to the huge N.American market but KQ cannot thanks to a lousy JKIA.

As for other major airlines, yes... but there is a future in intra-African growth which KQ can capture. Look at the new destinations in 2009 or (proposed) 2010... mostly African...