www.af.reuters.com/artic...ws/idAFN6E8HE00C20121106

this is even lower than anticipated. KES 6.6B loss is too much. how further down will the stock now sink?

Spot on. KQ does have poor customer service. Most of the staff are nonchalant and apathetic. The CEO has ridden over many storms including two air crashes, that cld have deflated the business basing on a relative small fleet size. He deserves kudos for some things but his sunset days are now here. New floor price of KES 10 is in the offing over the next few days. No one will sell below KES 10.

The stock market doesn't like words like no one, or never

I reckoned the loss would be chunky but not this chunky. It now certainly looks gloomy! It should also tell us an airline is not a business you markets without much homework, it's got to be measured, market driven and synched with capacity growth. it's now clear KQ's route expansion is not very well researched. Most of the airlines making losses make losses in routes they already operate in because of competition and challenge of passing these to passengers. Obviously KQ has limited competition in routes it operates in and can therefore transfer cost pressure to pax easily. Which can only mean KQ is buying planes, opening routes to grow sales without much recourse to the profitability of these routes, AKA buying growth typically what some banks and insurance companies do with branch expansion.

I wish KQ could share high level profitability numbers of the routes they opened from 2006 to date. The ball dropped on or about 2006!

could Naikuni be gambling with passengers lives? link ndio hii. palipo na moshi..
www.the-star.co.ke/news/...kq-buys-planes-tax-haven