Where did you get your data from? KQ was 100% gov't owned until the early 90s [Speedwing Consulting brought in KLM] until it was restructured. Please provide us with the data for the past 30 years to enable us buy into your theory.

6th dreamliner lands tomorrow :) 53 aircraft and counting.. Ethiopian & SA are finally about to meet their match. No more marketing competition based on young fleet, onboard entertainment and flat beds

@murchr in the airline industry failure is the rule rather than the exception.

lets talk facts, shall we...
The airline industry is characterized by:
1. High barriers to entry because of capital costs and regulations. Good discourages competition
2. Low profit margins. Depends on business strategy
3. High fixed costs for fuel, personnel, debt service and lease rentals.Depends on business strategy, you can use financial strategies to mitigate this
4. Highly competitive, with constant price wars and ticket discounting. Most are highly subsidized national assets.That is only true in airspaces that are crowded. And like every industry gov plays a role

Our beloved pride of Africa's (one of the best performing and managed airlines in the world) revenues for the last 3 yrs combined was KShs 311B but only KShs 1.6B reached the shareholders! Well the airline has been acquiring planes so increasing the assets of the business thus giving itself some competitive edge, or how else would they compete?
Putting that money in T Bills would have earned you at least KShs 30B.


IMO, compared with other investments, project mawingu is just creating a bigger giant with a softer under belly. There was no way KQ would have faced competition with while using planes that were guzzlers, they had to acquire planes that give then value for money

Now @murchr which of the above do you dispute? Give reasons.