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Kenya Airways...why ignore..
Rank: Member Joined: 2/8/2007 Posts: 808
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What is scary is that they borrowed to service another loan and are definitely defaulting this year. Cant see where they will get 40B. Time to shut down pj mawingu and return to basics.
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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Kausha wrote:What is scary is that they borrowed to service another loan and are definitely defaulting this year. Cant see where they will get 40B. Time to shut down pj mawingu and return to basics. That project was very necessary. Ethiopian would have closed down KQ with their sleek 787s
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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obiero wrote:Kausha wrote:What is scary is that they borrowed to service another loan and are definitely defaulting this year. Cant see where they will get 40B. Time to shut down pj mawingu and return to basics. That project was very necessary. Ethiopian would have closed down KQ with their sleek 787s It wasn't necessary @Obiero and TN was told we dint need all those planes at once rather at that fast paced interval....he was effing told...look at the end result...Ethiopian airlines have,will and are having a field.day out of all this...aaaarrrggh. possunt quia posse videntur
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Kausha wrote:What is scary is that they borrowed to service another loan and are definitely defaulting this year. Cant see where they will get 40B. Time to shut down pj mawingu and return to basics. On point... http://www.wazua.co.ke/f...sts&t=7270&p=45
Post 895 if am not wrong.... possunt quia posse videntur
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Rank: Veteran Joined: 8/16/2009 Posts: 994
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Angelica _ann wrote:Fake advice as they come what would take ARM to 50's zone just like that wajameni!!!! On that one the analyst must have been a rare weed.Also disputable is a sell recommendation on Stanbic. KENGN at 17 also appears far fetched. Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
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Rank: Chief Joined: 1/3/2007 Posts: 18,095 Location: Nairobi
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maka wrote:obiero wrote:Kausha wrote:What is scary is that they borrowed to service another loan and are definitely defaulting this year. Cant see where they will get 40B. Time to shut down pj mawingu and return to basics. That project was very necessary. Ethiopian would have closed down KQ with their sleek 787s It wasn't necessary @Obiero and TN was told we dint need all those planes at once rather at that fast paced interval....he was effing told...look at the end result...Ethiopian airlines have,will and are having a field.day out of all this...aaaarrrggh. Read what Delta did. They bought and use cheaper old(er) planes which they obsessively clean and maintain. And Delta is profitable. http://m.deseretnews.com...nes-in-2013.html?pg=all
KQ's 'partner' KLM/AF is broke. And making losses. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,095 Location: Nairobi
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obiero wrote:Titus Naikunyi.. The shame of Africa Pole sana. Do not say we did not warn you! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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VituVingiSana wrote:maka wrote:obiero wrote:Kausha wrote:What is scary is that they borrowed to service another loan and are definitely defaulting this year. Cant see where they will get 40B. Time to shut down pj mawingu and return to basics. That project was very necessary. Ethiopian would have closed down KQ with their sleek 787s It wasn't necessary @Obiero and TN was told we dint need all those planes at once rather at that fast paced interval....he was effing told...look at the end result...Ethiopian airlines have,will and are having a field.day out of all this...aaaarrrggh. Read what Delta did. They bought and use cheaper old(er) planes which they obsessively clean and maintain. And Delta is profitable. http://m.deseretnews.com...nes-in-2013.html?pg=all
KQ's 'partner' KLM/AF is broke. And making losses. Delta's profit fell 74% due to an increase of operating expenses. Clearly old planes did not help. Rather American are flying more traffic increased by 3.7%. KQ has to work on cutting expenses. They seem to forget that they operate in a third world. That's where Ethiopian beats them, they operate more new planes at a lower cost. Still making money from hedging, interesting, balance on $ vs oil. "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Chief Joined: 1/3/2007 Posts: 18,095 Location: Nairobi
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murchr wrote:VituVingiSana wrote:maka wrote:obiero wrote:Kausha wrote:What is scary is that they borrowed to service another loan and are definitely defaulting this year. Cant see where they will get 40B. Time to shut down pj mawingu and return to basics. That project was very necessary. Ethiopian would have closed down KQ with their sleek 787s It wasn't necessary @Obiero and TN was told we dint need all those planes at once rather at that fast paced interval....he was effing told...look at the end result...Ethiopian airlines have,will and are having a field.day out of all this...aaaarrrggh. Read what Delta did. They bought and use cheaper old(er) planes which they obsessively clean and maintain. And Delta is profitable. http://m.deseretnews.com...nes-in-2013.html?pg=all
KQ's 'partner' KLM/AF is broke. And making losses. Delta's profit fell 74% due to an increase of operating expenses. Clearly old planes did not help. Rather American are flying more traffic increased by 3.7%. KQ has to work on cutting expenses. They seem to forget that they operate in a third world. That's where Ethiopian beats them, they operate more new planes at a lower cost. Still making money from hedging, interesting, balance on $ vs oil. Comprehensive Income shows Hedging Losses > Realized Gains on Hedges Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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@vvs - are they still hedging on oil? Haven't looked at the results. If so, with oil prices cratering and should it remain so by Mar 2015 (FY) with $>90 those hedging losses will be worse... $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 1/3/2007 Posts: 18,095 Location: Nairobi
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hisah wrote:@vvs - are they still hedging on oil? Haven't looked at the results. If so, with oil prices cratering and should it remain so by Mar 2015 (FY) with $>90 those hedging losses will be worse... Yes. And look at the results. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 7/20/2007 Posts: 4,432
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Read the whole thread at night. This thread should be pinned as the most important thread on wazua ever. It's a summary of those who peddle PR companies and those that deal with real statistics. Maybe KQ management should ask itself one question. Why is it that everyone I know will find a way to schedule their trips from the US with Ethiopian but will always avoid KQ? As a customer, I wouldn't touch KQ even if they painted their wings blue. Loved the AKenyan exit on the counter. That was brilliant Jose: If I make it through this thug life, I'll see you one day. The Lord is the only way to stop the hurt.
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Rank: Elder Joined: 5/1/2010 Posts: 3,024 Location: Hapa
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alma wrote:Read the whole thread at night. This thread should be pinned as the most important thread on wazua ever.
It's a summary of those who peddle PR companies and those that deal with real statistics.
Maybe KQ management should ask itself one question. Why is it that everyone I know will find a way to schedule their trips from the US with Ethiopian but will always avoid KQ? As a customer, I wouldn't touch KQ even if they painted their wings blue.
Loved the AKenyan exit on the counter. That was brilliant Also read it at night and I agree, it should be pegged as one of the most important threads. Float like a butterfly, sting like a bee. - Muhammad Ali🐝
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Rank: Member Joined: 7/2/2014 Posts: 123
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Gatheuzi wrote:Angelica _ann wrote:Fake advice as they come what would take ARM to 50's zone just like that wajameni!!!! On that one the analyst must have been a rare weed.Also disputable is a sell recommendation on Stanbic. KENGN at 17 also appears far fetched. KENGEN is surely headed there, or almost there by year end. ,
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Rank: Veteran Joined: 3/12/2010 Posts: 1,199 Location: Eastlander
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Same concerns raised in first post of this thread back in 2010 still remain unaddressed in 2014 it's only once.. March 2013, while issuing a profit warning, that Titus Naikuni acknowledged in briefing that KQ has had operational inefficiencies and that they continue to seek to mitigate the same. Figures don't lie. KQ is spending dunn too much to get just a shilling in revenue. Plus paying themselves heartily. O_o ..Let your light so shine before men, that they may see your good works, and glorify your Father which is in heaven...Matt5:16
- 1769 Oxford King James Bible 'Authorized Version
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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VituVingiSana wrote:hisah wrote:@vvs - are they still hedging on oil? Haven't looked at the results. If so, with oil prices cratering and should it remain so by Mar 2015 (FY) with $>90 those hedging losses will be worse... Yes. And look at the results. Oh dear! The results are horrible to say the least! Those hedges will be nasty if the scenario I mentioned above will be present by Mar 2015.
I'm trying to model scenarios on how this debt sink will be filled, this will hurt for a long time  
Conclusion: -
1. Is another rights issue coming up!? Investors snubbed the one in 2012, they'll snub the next one. Fact!
2. Is a bailout by gok on cards. Very likely.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Member Joined: 3/26/2012 Posts: 830
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This one will bleed out on the operating table. At the end of the year, the shareholders will be informed that despite the heroic efforts of its talented surgeon (Naikuni & Co.), it expired from a massive financial hemorrhage courtesy of hedging loses. I expect the price to nose dive Mumias style...the loses are catastrophic. A successful man is not he who gets the best, it is he who makes the best from what he gets.
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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classic thread indeed :) but to those wishing death on the firm.. ptho!!!
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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VituVingiSana wrote:murchr wrote:VituVingiSana wrote:maka wrote:obiero wrote:Kausha wrote:What is scary is that they borrowed to service another loan and are definitely defaulting this year. Cant see where they will get 40B. Time to shut down pj mawingu and return to basics. That project was very necessary. Ethiopian would have closed down KQ with their sleek 787s It wasn't necessary @Obiero and TN was told we dint need all those planes at once rather at that fast paced interval....he was effing told...look at the end result...Ethiopian airlines have,will and are having a field.day out of all this...aaaarrrggh. Read what Delta did. They bought and use cheaper old(er) planes which they obsessively clean and maintain. And Delta is profitable. http://m.deseretnews.com...nes-in-2013.html?pg=all
KQ's 'partner' KLM/AF is broke. And making losses. Delta's profit fell 74% due to an increase of operating expenses. Clearly old planes did not help. Rather American are flying more traffic increased by 3.7%. KQ has to work on cutting expenses. They seem to forget that they operate in a third world. That's where Ethiopian beats them, they operate more new planes at a lower cost. Still making money from hedging, interesting, balance on $ vs oil. Comprehensive Income shows Hedging Losses > Realized Gains on Hedges Realized gains = losses? Made money hedging against oil, made losses hedging against the $? Quote:PROFIT WARNING
Given the factors and the concerns stated above, second half year results of Kenya Airways are
unlikely to reverse the full impact of the first half loss and attain results close to or at last year’s levels.
It is reasonable at this time to anticipate earnings for the financial year 2014/15 that will be lower than the previous year’s by at least 25%.
The Board of Directors has taken adequate measures to guard against further erosion of shareholder value and remains optimistic that the revamped customer experience offered by various investments, and other initiatives by Management will return the airline to profitability.
The Board takes this opportunity to thank all its shareholders, customers, staff, management, the
Government and suppliers for their dedicated contribution to the growth of the airline. "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Member Joined: 5/13/2008 Posts: 558
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These are the facts:
1. KQ Board was in Naikuni's Cage
2. Naikuni run down the Airline at will,. ... He reported to himself and nobody questioned his Authority. Board was signing to his tunes
3. KQ's Management didn't adapt to the challenging operating environment (Competition, Travel Advisories,JKIA Airport Inefficiencies, etc); - had poor strategy in fact had no strategy to tackle the challenges.
4. Staff Morale went down the drain. Many of the minds that had set up the Airline for take-off between 2001-2005 left the airline due to frustrations by Naikuni and his irk. You need to retain the royal and good staff.
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