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Kenya Airways...why ignore..
Rank: Elder Joined: 5/27/2008 Posts: 3,760
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c&p Mail & African Guardian online magazine
ETHIOPIAN Airlines Enterprise, East Africa’s biggest carrier by revenue, is considering proposals to help set up national airlines in Nigeria and three other countries to expand its operations on the continent.
The state-owned company, which has stakes in Malawian Airlines and ASKY Airlines of Togo, has been approached by the Nigerian government about a new carrier for Africa’s biggest economy, Chief Executive Officer Tewolde Gebremariam said in an interview on March 20.
Ethiopian Airlines is also in discussions with the administrations of Uganda, South Sudan, and the Democratic Republic of Congo, he said, without giving further detail.
“We have been invited to participate and we’ve given a strong expression of interest,” he told Bloomberg T.V. on a private plane from Dublin to London, where he was promoting a route to Los Angeles via the Irish capital. “As soon as the process allows then we will submit a business proposal.”
Ethiopian Airlines is competing with South African Airways and Kenya Airways Ltd. as they expand routes outside their home markets to tap greater demand for travel within the continent. SAA, also state-controlled, is seeking a hub in West Africa that would also be a stop-off point on the way to the US.
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Boris Boyka wrote:sparkly wrote:KQ is technically very weak. Price is about to collapse with a rebound no where in sight.
Decided to cut my losses on my speculative KQ holdings in put the money in a more promising stock.
Very wise decision. By that 2017/18 of @obiero (if luck arises) you will have recovered the loss and made handsome gains in some other stocks. Took a 37% loss but no worries since KQ was a small part of my Portfolio. Better invest in a stock with upside potential than wait for an upswing that may never come. Life is short. Live passionately.
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Rank: Member Joined: 10/14/2011 Posts: 661
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Cde Monomotapa wrote:ike wrote:obiero wrote:Cde Monomotapa wrote:ike wrote:TheGeek wrote:Did I just hear ngunze state on national tv that KQ is hedging up to 80% of their fuel budget and their bill is higher than current fuel prices. kq should do away with hedging that has consistently made them losses. and anyway who couldn't guess fuel prices were going down with all these oil deposits discovery everywhere. A credibility issue arose to me btwn the annual report & bloggers, whereby the last annual report indicated 51% hedge to Mar. 2015. So when were the 80% hedges done? Since I'd like to rely more on the annual report.. At 80% hedge then it means for every 100 bob KQ spent on fuel it is now spending 90 bob? A wild guess of efficiency of the 'youngest fleet in Africa' of 15% gives 67.5 bob. Heh, the fuel drop is/was the easiest trick in the book. Now, it will take deep scalping. Those new routes better be worth the hustle. Let's see. Btw, ngunze admitted that they have leeway to hedge upto 80%, not that they had hedged by that margin of course that was only a polite way of giving light to the current situation which he admits is bad. He even mentioned they can hedge from 2 months to 1 year. A bad situation with good leadership is only temporary so take heart... but stop adding. @Obiero, thanks. Noted that. There is a past annual report that has the breakdown disclosed. OK. This thread is just spawning into Club SK quality. Wale wamekata kura, wamekata shauri. @ Cde, these are figures in 2012/2013 & 2013/2014 Annual Reports. (ii) Jet fuel price risk The Group’s fuel risk management strategy aims to provide the airline with protection against sudden and significant increases in oil prices. To meet this objective, the Company uses fuel hedges within approved limits and with approved counterparties accordingly. There were derivative financial instruments held to manage fuel price risk at 31 March 2014. As at 31 March 2014 the Group had in place fuel hedging contracts for 51 percent of its anticipated fuel requirements for the period up to 31 March 2015 and 27 percent of anticipated fuel requirements for the period to 31 March 2016. The following sensitivity analysis shows how profit and equity would change if the fuel price had been different with all other variables held constant. 2014 2013 Kshs million Kshs million Kshs million Kshs million Effect on profit Effect on equity Effect on profit Effect on equity Fuel price -1% Movement 398 398 414 414 +1% Movement (398) (398) (414) (414) (ii) Jet fuel price risk The Group’s fuel risk management strategy aims to provide the airline with protection against sudden and significant increases in oil prices. To meet this objective, the Company uses fuel hedges within approved limits and with approved counterparties accordingly. There were derivative financial instruments held to manage fuel price risk at 31 March 2013. As at 31 March 2013 the Group had in place fuel hedging contracts for 80 percent of its anticipated fuel requirements for the period up to 31 March 2014 and 36 percent of anticipated fuel requirements for the period to 31 March 2015. The following sensitivity analysis shows how profit and equity would change if the fuel price had been different with all other variables held constant. 2013 2012 Kshs million Kshs million Kshs million Kshs million Effect on Effect on Effect on Effect on profit equity profit equity Fuel price -1% Movement 414 414 407 407 +1% Movement (414) (414) (407) (407)
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Gordon Gekko wrote:c&p Mail & African Guardian online magazine
ETHIOPIAN Airlines Enterprise, East Africa’s biggest carrier by revenue, is considering proposals to help set up national airlines in Nigeria and three other countries to expand its operations on the continent.
The state-owned company, which has stakes in Malawian Airlines and ASKY Airlines of Togo, has been approached by the Nigerian government about a new carrier for Africa’s biggest economy, Chief Executive Officer Tewolde Gebremariam said in an interview on March 20.
Ethiopian Airlines is also in discussions with the administrations of Uganda, South Sudan, and the Democratic Republic of Congo, he said, without giving further detail.
“We have been invited to participate and we’ve given a strong expression of interest,” he told Bloomberg T.V. on a private plane from Dublin to London, where he was promoting a route to Los Angeles via the Irish capital. “As soon as the process allows then we will submit a business proposal.”
Ethiopian Airlines is competing with South African Airways and Kenya Airways Ltd. as they expand routes outside their home markets to tap greater demand for travel within the continent. SAA, also state-controlled, is seeking a hub in West Africa that would also be a stop-off point on the way to the US. Indeed. Africa-Intra-Outbound is dominated by the 3. How would you describe what ETH is trying to do? Core business or side hustle? 1st things 1st is getting KQ's finances in order, that goes for SAA too. Direct flights to & fro the US for KQ as well. Leveraging SkyTeam is a strong proposition and JKIA as a Hub. SkyTeam is Airline Alliance of the year 2015Quote:SkyTeam, a global airline alliance, has been adjudged ‘Airline Alliance of the Year,’ in the 2015 Air Transport News awards, which recognize achievements across a broad cross-section of the aviation industry. http://vibeghana.com/201...liance-of-the-year-2015/
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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mlennyma wrote:Gordon Gekko wrote:ike wrote:On the bright side, Gunze seems like a bright guy.I liked the way he kept shareholders optimistic by cleverly, clearly and honestly answering the questions. Ngunze is a great guy no doubt, but my position is still the same - he is not right for CEO. He's a consultant - lofty unworkable ideas which he peddles very eloquently. What of substance did you pick out from the TerryAnn interview? KQ needs a dukawala to run it, FMCG mindset. BTW what happened to the ticketing office at Tea Room? KQ faces unprecedented challenges, wouldn't you feel more comfortable with a Vimal Shah at the helm? Or that ex Nakumatt CEO who had the longest name? Vimal shah whose workers were on the streets this week starving of poor pay and working conditions,this are pple with very crude thinking on workers remuneration You're actually supporting my position. Vimal would've beaten the crap out of that union and ensured the overpaid staff earn their keep. True Ngunze has realised that his staff is overpaid, but he has instead renamed their pay from allowances to something else, but the cash outflow is still the same. If you can't reduce their pay, then make them work for every penny.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Gordon Gekko wrote:mlennyma wrote:Gordon Gekko wrote:ike wrote:On the bright side, Gunze seems like a bright guy.I liked the way he kept shareholders optimistic by cleverly, clearly and honestly answering the questions. Ngunze is a great guy no doubt, but my position is still the same - he is not right for CEO. He's a consultant - lofty unworkable ideas which he peddles very eloquently. What of substance did you pick out from the TerryAnn interview? KQ needs a dukawala to run it, FMCG mindset. BTW what happened to the ticketing office at Tea Room? KQ faces unprecedented challenges, wouldn't you feel more comfortable with a Vimal Shah at the helm? Or that ex Nakumatt CEO who had the longest name? Vimal shah whose workers were on the streets this week starving of poor pay and working conditions,this are pple with very crude thinking on workers remuneration You're actually supporting my position. Vimal would've beaten the crap out of that union and ensured the overpaid staff earn their keep. True Ngunze has realised that his staff is overpaid, but he has instead renamed their pay from allowances to something else, but the cash outflow is still the same. If you can't reduce their pay, then make them work for every penny. He was candid that pay is now linked to productivity as per the CBA.
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Rank: Elder Joined: 6/23/2009 Posts: 13,487 Location: nairobi
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kollabo wrote:obiero wrote:mlennyma wrote:This man admitting he is paying his workforce with debt money,how long can he do that?? Hehe. That was embarassing. But what did u expect him to say?? my only problem with the interview is when he said 'we do not need a bail out at the moment'.. that means he believes we can get there Did you notice the long pause after he was asked that question? Yes. The eyes popped too.. In a gololi like manner 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: 5/27/2008 Posts: 3,760
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obiero wrote:kollabo wrote:obiero wrote:mlennyma wrote:This man admitting he is paying his workforce with debt money,how long can he do that?? Hehe. That was embarassing. But what did u expect him to say?? my only problem with the interview is when he said 'we do not need a bail out at the moment'.. that means he believes we can get there Did you notice the long pause after he was asked that question? Yes. The eyes popped too.. In a gololi like manner Mine popped out and I had to pick them from the floor when he said he's paying salaries using debt. When in a hole do you keep digging?
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Rank: Chief Joined: 1/3/2007 Posts: 18,078 Location: Nairobi
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mlennyma wrote:Gordon Gekko wrote:ike wrote:On the bright side, Gunze seems like a bright guy.I liked the way he kept shareholders optimistic by cleverly, clearly and honestly answering the questions. Ngunze is a great guy no doubt, but my position is still the same - he is not right for CEO. He's a consultant - lofty unworkable ideas which he peddles very eloquently. What of substance did you pick out from the TerryAnn interview? KQ needs a dukawala to run it, FMCG mindset. BTW what happened to the ticketing office at Tea Room? KQ faces unprecedented challenges, wouldn't you feel more comfortable with a Vimal Shah at the helm? Or that ex Nakumatt CEO who had the longest name? Vimal shah whose workers were on the streets this week starving of poor pay and working conditions,this are pple with very crude thinking on workers remuneration Pay/compensation should be related to productivity not hunger. If I own a manufacturing firm in Kenya (or anywhere in the world), I would automate as much as possible. Why? - Machines do not steal/pilfer - The quality of production is more consistent. I do not need hand-crafted margarine! - 24/7 without the need for shift changes. - As technology improves, the machines can be programmed to produce what's needed and when. - Cost reductions. Perhaps. When the Japanese started using robots, the quality of the vehicles improved while costs went down. This allowed the Japanese to become much larger vs their American counterparts who relied on very expensive 'labor' that went on strike, sabotaged production and produced an inferior build. Forget painting a car, there are firms that use robots to 'dip' an entire car into a anti-corrosion bath which evenly coats the frame allowing for a longer-lasting finish. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,657 Location: NAIROBI
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Ethiopian airlines plans to operations of a national airline in Nigeria and three African countries. The other three countries are Uganda,South Sudan and Democratic Republic of Congo. The airline will establish joint ventures where it will own majority stake Wealth is built through a relatively simple equation Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 5/31/2009 Posts: 226
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The hearts and mind of flyers will not be worn by how big an airline is or how many hubs it has but the quality and comfort of passengers. KQ is on the right track with its shift to focus on guests confort while Et is trying to get big. KQ has invested heavily on training and procuring systems that will put it in the league of award winning carriers Asiana, Cathy pacific,Qatar who are certainly not the biggest airlines in the world. KQ on board service is unrivaled even by Ethiopian or SAA visit www.airlinequality.com and see its latest ratings soon they will be in a class of their own. Mbuvi is right KQ is in the service indurstry not manufacturing so employees will be key to service recovery not robots. FYI KQ fares to LONDON are higher than British Airways both operate the boeing 777 on the route both are the only carrriers flying direct but KQ always ahead of BA in passenger figures especialy now thats its flying the 787 bigger windows, less noise, mood lighting and 40%better air circulation
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Rank: Elder Joined: 6/23/2009 Posts: 13,487 Location: nairobi
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premio wrote:The hearts and mind of flyers will not be worn by how big an airline is or how many hubs it has but the quality and comfort of passengers. KQ is on the right track with its shift to focus on guests confort while Et is trying to get big. KQ has invested heavily on training and procuring systems that will put it in the league of award winning carriers Asiana, Cathy pacific,Qatar who are certainly not the biggest airlines in the world. KQ on board service is unrivaled even by Ethiopian or SAA visit www.airlinequality.com and see its latest ratings soon they will be in a class of their own. Mbuvi is right KQ is in the service indurstry not manufacturing so employees will be key to service recovery not robots. FYI KQ fares to LONDON are higher than British Airways both operate the boeing 777 on the route both are the only carrriers flying direct but KQ always ahead of BA in passenger figures especialy now thats its flying the 787 bigger windows, less noise, mood lighting and 40%better air circulation I couldnt have said it better 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: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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mlennyma wrote:This man admitting he is paying his workforce with debt money,how long can he do that?? Ati nini????? Too dangerous to be true!! Wapi Rinki?? Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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dunkang wrote:mlennyma wrote:This man admitting he is paying his workforce with debt money,how long can he do that?? Ati nini????? Too dangerous to be true!! Wapi Rinki?? Who? possunt quia posse videntur
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Rank: Elder Joined: 6/20/2012 Posts: 3,855 Location: Othumo
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maka wrote:dunkang wrote:mlennyma wrote:This man admitting he is paying his workforce with debt money,how long can he do that?? Ati nini????? Too dangerous to be true!! Wapi Rinki?? Who? KQ - Daily Nation today (27.03.2015) page 34. Thieves
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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obiero wrote:premio wrote:The hearts and mind of flyers will not be worn by how big an airline is or how many hubs it has but the quality and comfort of passengers. KQ is on the right track with its shift to focus on guests confort while Et is trying to get big. KQ has invested heavily on training and procuring systems that will put it in the league of award winning carriers Asiana, Cathy pacific,Qatar who are certainly not the biggest airlines in the world. KQ on board service is unrivaled even by Ethiopian or SAA visit www.airlinequality.com and see its latest ratings soon they will be in a class of their own. Mbuvi is right KQ is in the service indurstry not manufacturing so employees will be key to service recovery not robots. FYI KQ fares to LONDON are higher than British Airways both operate the boeing 777 on the route both are the only carrriers flying direct but KQ always ahead of BA in passenger figures especialy now thats its flying the 787 bigger windows, less noise, mood lighting and 40%better air circulation I couldnt have said it better Hmmmmm....KQ staff are probably the worst of any airline I have ever flown. They are always miserable, unhelpful, get upset when ask for something and sometimes downright rude. If KQ is counting on staff to help the turnaround, we are in worse trouble than we think! Business opportunities are like buses,there's always another one coming
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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King G wrote: KQ - Daily Nation today (27.03.2015) page 34.
LINKCash-strapped Kenya Airways has turned to debt to pay its workforce as the national carrier flies under the weight of liquidity flow problems that have seen its debt burden hit Sh70 billion. Chief executive officer Mbuvi Ngunze said the airline was experiencing tough financial times that had left it with no option but to rely on debt to sustain its nearly 4,000 workforce. Paying through debt “...So how am I paying my staff? I am paying them through debt,” Mr Ngunze said when he appeared on Citizen Television’s Business Centre show on Wednesday night. Pesa Nane plans to be shilingi when he grows up.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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@PN, such alarmist headlines go to reinforce my earlier point (dug up from what's already been published as at Sept.2014). How will we attract listings that way? A prospective would rather remain private!
This is even more sad coming from a listed FMCG company - NMG. Whereby sales can lag obligations and you call in your bankers. Only the CFO would get that unfortunately. The trials of enterprise...
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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Alarmist or not, it is very shocking when Kq is paying salaries through debt. what beats me is how laymen like ourselves can clearly see kq digging itself into debt with mawingu yet the whole board "cant see" The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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Cde Monomotapa wrote:@PN, such alarmist headlines go to reinforce my earlier point (dug up from what's already been published as at Sept.2014). How will we attract listings that way? A prospective would rather remain private!
This is even more sad coming from a listed FMCG company - NMG. Whereby sales can lag obligations and you call in your bankers. Only the CFO would get that unfortunately. The trials of enterprise... Agreed, only that its generally called overdraft or working capital financing, not debt. Ngunze is an accountant and he knows what he's talking about when he says debt. Overdraft is a current liability payable at most in a year. Debt is classified as a long term liability, which is generally secured with physical assets and have priority when s**t hits the fan.
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