@jerry epitomises the tragedy of a timid investor, having confirmed that he sold at KES 7.80 when the share rose all the way to KES 126 in less than a decade. Im sorry for your loss of that golden opportunity to create massive wealth. Now, here goes the mini essay in order of financial impact:
1. Route optimisation that has seen rescheduling of primary source markets to enhance efficieny has been noted to rake in increasing annual revenue to over KES 118B in current financial year
2. Sale/lease of underutilised assets will save KQ over KES 3.5B per annum with expected once off revenue of KES 9.2B in current financial year
3. Renegotiation of loan tenor for outstanding facilities was a touch of genius, with expected easing of KES 3.5B in fleet ownership costs per year
4. Staff productivity management has seen improvement of OTP to levels last seen in the early 90s. Further, the HOTAC cashflow dampener has been arrested by onward forwarding of costs to the crew, for identified cases of laxity, saving KQ an average of KES 1,650,000 per successful trip
KQ is on the right track and shall post a massively improved financial position, with an operating profit and a cutback of the overall loss element by over KES 18B in the current financial year ending 31.03.2016 @wazua Bookmark this post..

I am glad Ngunze is reviving KQ but as an investment TODAY at 4.50 buying KQ shares seems unwise vs the other options.

Many banks eg NIC, I&M, Equity, DTB, etc are trading at very attractive multiples.

Unga trades at a forward PER of 7 with a market that demands more FMCG.

KK is at an (estimated) PER of 9 [for FY 2015] but I estimate an EPS of 1.35-1.50 for FY 2016. I await the results on 18th then AGM for a better understanding of their performance.

And many others, despite a few rough years, are not in the hole e.g. TPSEA [tourism downturn], Britam [Rawat drama], Centum, HFCK, etc.

Others are 'new' eg Flame Tree but show promise if KE's economy improves/grows.

Anyway, it is @Obiero's money. It is @jerry's money. It is @VVS money. Live and learn.

Good development but the journey to dreamland is elusive and long!

Not the first time a KE prez has "opened" a project that wasn't ready! KPC did that with Kibaki who commissioned a pipeline/expansion that was anything but ready. http://www.thezimbabwean...ya-day-kibaki-was-duped/

move with caution

Not the first time a KE prez has "opened" a project that wasn't ready! KPC did that with Kibaki who commissioned a pipeline/expansion that was anything but ready. http://www.thezimbabwean...a-day-kibaki-was-duped/[/quote]

Never happened as expected...only 1 live flight was done...failed dramatically back to the drawing board...

@sparkly.. U forgot to tell us that it also traded at KES 126.. To each his own, if airlines were bad investments, then planes wldnt be built, we wldnt have airports.. Seems simplistic, but it is altruist. It depends on the strategy of the airline, otherwise, people like Branson and Buffet wldnt own Virgin & Jetways

whoop whoop....

Kusoma ni bure.

http://www.wsj.com/artic...a-rare-pinch-1420485740
NetJets Unrest Puts Warren Buffett in a Rare Pinch
Pilots Protest Against Pay, Benefits at Berkshire Hathaway’s NetJets

"In the case of NetJets, the pressure to complete the turnaround of a business Mr. Buffett once called his “number one worry” is now spilling into public view."

"In the 16 years that Berkshire has owned NetJets, the jet operator has never paid its owner a dividend, and its net worth is considerably less than the $725 million Berkshire paid for it in 1998" This was from a 2015 article. WB would have been better off putting the money in the bank!

"worsened amid extended contract negotiations with multiple unions representing pilots, flight attendants, mechanics and others. NetJets, based in Columbus, Ohio, has about 6,200 employees, a majority of whom belong to unions."

"NetJets took a major hit during the financial crisis as wealthy clients cut back on private flying, surviving only because Berkshire guaranteed its $1.9 billion debt load."

1) NetJets isn't an 'airline' as much as Uber [which owns planes].
2)NetJets is a pain for WB. Not one of his best performers. Too much drama.
3) No dividends. It has had negative cashflow in many years.
4) Despite all this is has a POSITIVE equity/capital whereas KQ has NEGATIVE capital.

"Everyone but shareholders made money off KQ." True or False?

Without GoK's bailout... = ZERO, SUFURI, NADA