Gordon Gekko wrote:I am also in this quagmatic zug zug for real and I honestly don't see a huge upsurge in earnings this year. I'm considering increased lease costs for the new craft (Embraers and those/that 737 from KLM), more routes mean increased fixed costs, the new routes will take a while to develop.....
On this I disagree...
- The 737-300 leased from KLM is to take care of demand. See 1Q Ops Stats. They 'lost' passengers coz of reduced flights coz of unavailability of planes.
- The Embraers are for domestic + regional traffic. An interesting tidbit is that 'premium' traffic is picking up such that KQ added premium seating to 1 Embraer from an all-economy configuration
- The PLFs were quite decent in 1Q & it seems that traffic worldwide has increased. 2Q will also see numbers from WC 2010 as well as increased fares due to the 'high season' from Europe.
The major spanner in the works remains JKIA... The traffic is KRAZY... Just getting in & out of the airport...
If I have 3 or more people in my party going NBO-Mombasa & 'time' is not an issue... I wud rather go by road!
I wud leave early in the morning coz it is cool & less traffic on the way... Avoids the bother to take a cab to JKIA, fly to MIA then take a cab to Mombasa town or wherever I am going!
For a 9am flight, I have to leave at 7am!!! Why? Traffic + 1 hour check-in at JKIA...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett