All negative information has been factored into current price. This counter is at a throw away price and makes for very sensible investment noting emerging economic developments in East Africa and Africa as a whole. In three years it will be trading at KES 75 or higher.

So I ask, again, How does KLM benefit from the current business model?

When airlines buy aircraft, who pays the interest? Who pays for maintenance? What happens if after 20 years the plane is no longer competitive?

[I am not saying renting/leasing is better than buying but it depends on multiple variables]

Do you have Etihad's financial information?
Is Emirates publicly traded? Many airlines [I can't confirm if it is true] claim Emirates receives subsidies from Dubai.
Southwest - An exception as is RyanAir [in Europe].

And all said & done, I don't argue with WB. His long-term batting average is spectacular. Far better than most (if not all) folks I know.

Of course! How could I forget that a plane that is 'owned' has no costs e.g. interest & depreciation.
WB loves boring. That's what makes money. 100% batting average? No. Better than 99.999999999% of the population? Yes.

Have we seen the worst of this stock, it my not be as resilient as KK!

Lets do our homework. KQ does not lease any 767 or 777 from KLM. It has only leased a few 737's for short to medium haul routes. Why would they lease 777's yet there's are not fully utilized. I prefer to buy into airlines with leased planes just like I love manufacturers who soak debt and produce consistent return. Leased planes put discipline in management of an airline.

It's incorrect to say purchased planes are cheaper because when business ain't great you park the damn planes. All planes have by and large simmilar costs but the difference is cashflow movement. When you park a purchased plane during market down turns you are paying for - parking fees, cabin crew costs, cockpit crew costs, engineers costs, offices on your routes and their staff costs, insurance premiums, interest and loan repayments etc. I would rather a leased plane because it incurs all other costs but importantly it keeps management honest and puts pressure on them to generate cashflows to fund plane lease payments.