Wazua
»
Investor
»
Stocks
»
Kenya Airways...why ignore..
Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
|
obiero wrote:sparkly wrote:obiero wrote:sparkly wrote:obiero wrote:sparkly wrote:obiero wrote:aemathenge wrote:obiero wrote:[quote=aemathenge]Maina and Kîng’ang’î will be singing “Happy Birthday to Kenya Airways” from tomorrow morning while offering a lucky caller 40,000 UhuRuto shillings. KQs biggest year. Life begins at 40  http://www.businessdaily...82942-m8ypcw/index.html[/quote] Quote:Ancillary services in the airline industry include entertainment, onboard shopping, Internet gaming, car hire, frequent flier programmes, and hotel bookings which eventually offset (and sometimes exceed) the budget ticket costs. Hayia. The Kenya Airways Group also does gambling? Hii pesa lazima tunyonye yote.. Creative juices have started flowing at KQ and now all we get on media are positive reviews.. Ngunze biggest failure was refusal to join social media Do you realize that KQ has a negative equity of KShs 39B? Do you know that GoK has already sunk KES 32B in 2016 into KQ to keep it afloat and has assured further assistance to the tune of KES 60B this year. Anyhow, negative equity is normal in capital intensive business such as airlines, globally Do you realize that being bailed out and having negative equity are not signs of prosperity? Do you realized that KQ now has an operating profit and leaner fleet hence reduced loss position by over 75% Do you know that a reduced loss is still a loss? Do you know that by the business improvement run rate that KQ will make a profit this year? You do not know that for sure! Life is short. Live passionately.
|
|
|
Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
|
No profit hapa.... possunt quia posse videntur
|
|
|
Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
|
Share price one of the biggest losers as it celebrates 40 years Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,054 Location: Nairobi
|
obiero wrote:sparkly wrote:obiero wrote:aemathenge wrote:obiero wrote:[quote=aemathenge]Maina and Kîng’ang’î will be singing “Happy Birthday to Kenya Airways” from tomorrow morning while offering a lucky caller 40,000 UhuRuto shillings. KQs biggest year. Life begins at 40 http://www.businessdaily...82942-m8ypcw/index.html[/quote] Quote:Ancillary services in the airline industry include entertainment, onboard shopping, Internet gaming, car hire, frequent flier programmes, and hotel bookings which eventually offset (and sometimes exceed) the budget ticket costs. Hayia. The Kenya Airways Group also does gambling? Hii pesa lazima tunyonye yote.. Creative juices have started flowing at KQ and now all we get on media are positive reviews.. Ngunze biggest failure was refusal to join social media Do you realize that KQ has a negative equity of KShs 39B? Do you know that GoK has already sunk KES 32B in 2016 into KQ to keep it afloat and has assured further assistance to the tune of KES 60B this year. Anyhow, negative equity is normal in capital intensive business such as airlines, globally Liar.  Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,054 Location: Nairobi
|
maka wrote:I will buy KQ at sub 4... A piece of sh..it at 6 is still a piece of she..it at 4. Why buy? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
|
VituVingiSana wrote:maka wrote:I will buy KQ at sub 4... A piece of sh..it at 6 is still a piece of she..it at 4. Why buy? Hahaha.. Mtajiju how to trade this year
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
|
|
|
Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
|
VituVingiSana wrote:maka wrote:I will buy KQ at sub 4... A piece of sh..it at 6 is still a piece of she..it at 4. Why buy? Let me buy scangroup and TPS instead... possunt quia posse videntur
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
|
maka wrote:VituVingiSana wrote:maka wrote:I will buy KQ at sub 4... A piece of sh..it at 6 is still a piece of she..it at 4. Why buy? Let me buy scangroup and TPS instead... Kigeugeu
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
|
|
|
Rank: Veteran Joined: 8/28/2015 Posts: 1,247
|
maka wrote:VituVingiSana wrote:maka wrote:I will buy KQ at sub 4... A piece of sh..it at 6 is still a piece of she..it at 4. Why buy? Let me buy scangroup and TPS instead... Who says this, @maka maka!( mamaiii, maka its @maka)  You have thrown in the towel two months to the year end. Things must thick inside their. ,Behold, a sower went forth to sow;....
|
|
|
Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
|
Interesting news guess who might be CEO? possunt quia posse videntur
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
|
maka wrote:Interesting news guess who might be CEO? It's William Hondius, none other is better
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
|
|
|
Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
|
obiero wrote:maka wrote:Interesting news guess who might be CEO? It's William Hondius, none other is better Yves possunt quia posse videntur
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
|
maka wrote:obiero wrote:maka wrote:Interesting news guess who might be CEO? It's William Hondius, none other is better Yves Yves Guibert is definitely well equipped but last time I heard, the fellow was in Lyon on transit to Qantas after bailing out of KQ.. Will KQ afford this bugger
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
|
|
|
Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
|
obiero wrote:maka wrote:obiero wrote:maka wrote:Interesting news guess who might be CEO? It's William Hondius, none other is better Yves Yves Guibert is definitely well equipped but last time I heard, the fellow was in Lyon on transit to Qantas after bailing out of KQ.. Will KQ afford this bugger He left when pilots pressurised senior guys to leave thats why he went to TAAG...Instead of remaining behind and being embarrassed like akina Musila (who will still go IMHO) he had an option.... possunt quia posse videntur
|
|
|
Rank: New-farer Joined: 4/11/2016 Posts: 30 Location: Nairobi
|
maka wrote:obiero wrote:maka wrote:obiero wrote:maka wrote:Interesting news guess who might be CEO? It's William Hondius, none other is better Yves Yves Guibert is definitely well equipped but last time I heard, the fellow was in Lyon on transit to Qantas after bailing out of KQ.. Will KQ afford this bugger He left when pilots pressurised senior guys to leave thats why he went to TAAG...Instead of remaining behind and being embarrassed like akina Musila (who will still go IMHO) he had an option.... I am skeptical of Yves being good CEO. His handling of the OTP during the runway closure nights was very poor. He was never seen in the airside during peak times thus totally out of touch with the complexities of the turn around processes. A top notch airline COO should never run operations solely from the comfort of the office.
|
|
|
Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
|
nzalela wrote:maka wrote:obiero wrote:maka wrote:obiero wrote:maka wrote:Interesting news guess who might be CEO? It's William Hondius, none other is better Yves Yves Guibert is definitely well equipped but last time I heard, the fellow was in Lyon on transit to Qantas after bailing out of KQ.. Will KQ afford this bugger He left when pilots pressurised senior guys to leave thats why he went to TAAG...Instead of remaining behind and being embarrassed like akina Musila (who will still go IMHO) he had an option.... I am skeptical of Yves being good CEO. His handling of the OTP during the runway closure nights was very poor. He was never seen in the airside during peak times thus totally out of touch with the complexities of the turn around processes. A top notch airline COO should never run operations solely from the comfort of the office. He is an excellent Manager... possunt quia posse videntur
|
|
|
Rank: New-farer Joined: 4/11/2016 Posts: 30 Location: Nairobi
|
ArrestedDev wrote:nzalela wrote:ArrestedDev wrote:obiero wrote:maka wrote:obiero wrote:ArrestedDev wrote:obiero wrote: Sale of the idle planes is a great gift that has been delivered by Ngunze.. The chap just needed 1 more year to be celebrated as a turnaround genius, but fate could not allow.. We now await the replacement for Mr Hondius, the next KQ CEO The current Jambojet CEO will not be the next KQ CEO. I beg to differ. The fleet rationalization was ill informed.The worst thing to summarize the entire exercise was to get rid of the 2 B787s. These jets could have even be retained and the older B737-700 phased out. After Ngunze's exit is when you see the blunders coming out one by one. Look at what Ciano did with the books and procurement in Uchumi, the jury is now out. Every common employee thinks they know better than the CEO, so I understand where you are coming from my friend The B737-700 are the ones going to West Africa they are doing perfectly well...KYM and KYN that were received from KLM were the ones that were phased out...KQ A...KQ B...are leased out to jambo jet...KQ C to KQ H are the work horse (s) of the national carrier.... Excellent breakdown. The Embraer never rests and the 787 has also faired well. Tuwache emotional analysis please @arresteddev The ones with Jambo jet are B737-300 which are very old. I thought it is the 737-800 that goes to Accra as well as Freetown. Is it not only 2 B737-700s which are remaining and 8+ plus years? These 2 has a higher fuel burn rate and the 2 B787s should have been used to replace these. The B787-800 can handle medium to long haul and provide capacity that is much needed to grow revenue. The E190s are now KQ's workhorse but it has worked to the detriment of revenue growth. KQ has never reported a profit since these type were inducted in 2012. The perceived benefits has never been realised. It is leading to capacity constraints and lack of cargo belly. During the high season, it cannot handle the demand and leads to overbooking hence inconveniecing customers. The duty free trolleys cannot fit in the aisle leading to loss of revenue that could have otherwise accrued from the sale of duty free items.This was even acknowledged in the annual report. The biggest loss KQ has suffered from these capacity constraint aircraft type is from Cargo.The technical issues relating to these fleet type has also been spiralling. I beg to differ. I also used to think the embraer was a bad purchase until you look at the numbers. KQ only makes money in routes within 2-3 hours of Nairobi. That is where the embraer flies. It has allowed for razor thin margins and lower break even cabin factors allowing for convenience and more options to the customer. i.e 5 flights a day to Dar, 5 to Entebbe, 3 to Addis, 8 -10 to mombasa...etc. This has been a significant factor that has enabled Kq to maintain market share and fend off regional competition. The fact that connecting passengers have flexiblity in timings. The cargo ofcourse is a pain to deal with but for the most part The embraer has been the saving grace for KQ. You can only differ with facts. Everything you need to know is in the numbers. The increased frequencies have not translated to anything and this is why KQ is in red up to a tune of 25 billion plus as per the 2016 results. The operating costs have not come down as expected since this type was inducted. The same applies to finance costs which have had a very serious impact on the going concern. One need to ask his/herself several questions here. These are the questions that even Ngunze has not been able to provide the answers to and this is the reason why MJ after listening to various people within KQ asked Ngunze to go.The sugar coated words that you quote from him is total hogwash.It is not supported by serious analysis of numbers. Fastjet did not exit the NBO route merely because of competition from KQ but due to the low number of passengers. Who else compete with KQ in the EAC, baby RwandAir and Precision? If that was the case, then RwandAir should have long halted the KGL-NBO service due the high number of daily frequencies by KQ.Sometimes the flight schedule is not about the convenience to a customer but what makes sense commercially for the Airline.It is a very delicate balance of what should take priority for a business to make money. How did KQ find itself at where it is now? The whole strategy adopted earlier own has totally failed and change of tact is required very urgently. It applied when there was less competition in Africa but today the business dynamics has totally changed. Cargo is more profitable to an airline than anything else. Focus need to shift here.KQ left a very big gap when they lost focus on Cargo Ops through a flawed pricing and lack of balance between passenger and cargo operations partly due to the change in the fleet type.ET uploads massive cargo tonnes in Africa. This is where they are making money from. They even leverage this to influence their passenger tickets pricing strategy. They can offer discounted ticket prices in destinations with alot of competition for passengers but less Cargo competition. Okay these are the facts. 1. Despite reduction in capacity passenger numbers went up largely due to increased frequencies and aircraft utilization. 2. With the embraer KQ can break even with average 50 pax depending on yield management strategy for the season. That is why KQ makes money mostly within 3 hours of Nairobi. 3. Fast jet got knocked out because of competition. They were priced out by KQ who could afford to undercut for an extended period and passengers preferred the convenience of 5 flights to choose from. Fast jet are now replacing their Airbus A319 with embraer 190's. Same ones Kq is operating. 4. Mackenzie and operation pride has yielded so much savings for the airline it is actually very impressive. The amount of wastage,inefficiency,corruption and inflated costs was mind boggling. You will be shocked to learn that London is now at break even point and doing much better after the expensive slot time costs were done with. Operation costs upwards of 25B will be cut by full year and the company is now cashflow self sustaining. The huge debts however are a grave concern. 5. Cargo in Kenya is a lemon if not well managed. The government has made JKIA a free cargo access market for all and sundry. That is why emirates can even do hops between eldoret and nairobi with a 777 cargo plane daily.Ethiopian market on the other hand is highly regulated and Ethiopian airlines enjoys cargo monopoly in the country. So it is not apples to apples. I wouldn't buy the stock but the company is now finally on a positive path to recovery.
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
|
nzalela wrote:ArrestedDev wrote:nzalela wrote:ArrestedDev wrote:obiero wrote:maka wrote:obiero wrote:ArrestedDev wrote:obiero wrote:Sale of the idle planes is a great gift that has been delivered by Ngunze.. The chap just needed 1 more year to be celebrated as a turnaround genius, but fate could not allow.. We now await the replacement for Mr Hondius, the next KQ CEO The current Jambojet CEO will not be the next KQ CEO. I beg to differ. The fleet rationalization was ill informed.The worst thing to summarize the entire exercise was to get rid of the 2 B787s. These jets could have even be retained and the older B737-700 phased out. After Ngunze's exit is when you see the blunders coming out one by one. Look at what Ciano did with the books and procurement in Uchumi, the jury is now out. Every common employee thinks they know better than the CEO, so I understand where you are coming from my friend The B737-700 are the ones going to West Africa they are doing perfectly well...KYM and KYN that were received from KLM were the ones that were phased out...KQ A...KQ B...are leased out to jambo jet...KQ C to KQ H are the work horse (s) of the national carrier.... Excellent breakdown. The Embraer never rests and the 787 has also faired well. Tuwache emotional analysis please @arresteddev The ones with Jambo jet are B737-300 which are very old. I thought it is the 737-800 that goes to Accra as well as Freetown. Is it not only 2 B737-700s which are remaining and 8+ plus years? These 2 has a higher fuel burn rate and the 2 B787s should have been used to replace these. The B787-800 can handle medium to long haul and provide capacity that is much needed to grow revenue. The E190s are now KQ's workhorse but it has worked to the detriment of revenue growth. KQ has never reported a profit since these type were inducted in 2012. The perceived benefits has never been realised. It is leading to capacity constraints and lack of cargo belly. During the high season, it cannot handle the demand and leads to overbooking hence inconveniecing customers. The duty free trolleys cannot fit in the aisle leading to loss of revenue that could have otherwise accrued from the sale of duty free items.This was even acknowledged in the annual report. The biggest loss KQ has suffered from these capacity constraint aircraft type is from Cargo.The technical issues relating to these fleet type has also been spiralling. I beg to differ. I also used to think the embraer was a bad purchase until you look at the numbers. KQ only makes money in routes within 2-3 hours of Nairobi. That is where the embraer flies. It has allowed for razor thin margins and lower break even cabin factors allowing for convenience and more options to the customer. i.e 5 flights a day to Dar, 5 to Entebbe, 3 to Addis, 8 -10 to mombasa...etc. This has been a significant factor that has enabled Kq to maintain market share and fend off regional competition. The fact that connecting passengers have flexiblity in timings. The cargo ofcourse is a pain to deal with but for the most part The embraer has been the saving grace for KQ. You can only differ with facts. Everything you need to know is in the numbers. The increased frequencies have not translated to anything and this is why KQ is in red up to a tune of 25 billion plus as per the 2016 results. The operating costs have not come down as expected since this type was inducted. The same applies to finance costs which have had a very serious impact on the going concern. One need to ask his/herself several questions here. These are the questions that even Ngunze has not been able to provide the answers to and this is the reason why MJ after listening to various people within KQ asked Ngunze to go.The sugar coated words that you quote from him is total hogwash.It is not supported by serious analysis of numbers. Fastjet did not exit the NBO route merely because of competition from KQ but due to the low number of passengers. Who else compete with KQ in the EAC, baby RwandAir and Precision? If that was the case, then RwandAir should have long halted the KGL-NBO service due the high number of daily frequencies by KQ.Sometimes the flight schedule is not about the convenience to a customer but what makes sense commercially for the Airline.It is a very delicate balance of what should take priority for a business to make money. How did KQ find itself at where it is now? The whole strategy adopted earlier own has totally failed and change of tact is required very urgently. It applied when there was less competition in Africa but today the business dynamics has totally changed. Cargo is more profitable to an airline than anything else. Focus need to shift here.KQ left a very big gap when they lost focus on Cargo Ops through a flawed pricing and lack of balance between passenger and cargo operations partly due to the change in the fleet type.ET uploads massive cargo tonnes in Africa. This is where they are making money from. They even leverage this to influence their passenger tickets pricing strategy. They can offer discounted ticket prices in destinations with alot of competition for passengers but less Cargo competition. Okay these are the facts. 1. Despite reduction in capacity passenger numbers went up largely due to increased frequencies and aircraft utilization. 2. With the embraer KQ can break even with average 50 pax depending on yield management strategy for the season. That is why KQ makes money mostly within 3 hours of Nairobi. 3. Fast jet got knocked out because of competition. They were priced out by KQ who could afford to undercut for an extended period and passengers preferred the convenience of 5 flights to choose from. Fast jet are now replacing their Airbus A319 with embraer 190's. Same ones Kq is operating. 4. Mackenzie and operation pride has yielded so much savings for the airline it is actually very impressive. The amount of wastage,inefficiency,corruption and inflated costs was mind boggling. You will be shocked to learn that London is now at break even point and doing much better after the expensive slot time costs were done with. Operation costs upwards of 25B will be cut by full year and the company is now cashflow self sustaining. The huge debts however are a grave concern. 5. Cargo in Kenya is a lemon if not well managed. The government has made JKIA a free cargo access market for all and sundry. That is why emirates can even do hops between eldoret and nairobi with a 777 cargo plane daily.Ethiopian market on the other hand is highly regulated and Ethiopian airlines enjoys cargo monopoly in the country. So it is not apples to apples. I wouldn't buy the stock but the company is now finally on a positive path to recovery. @nzalela thank you for the objective feedback. KQ is on the road to prosperity. To be precise KES 8 before end of year results release and KES 14 before mid year results
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
|
Kenya has in the past few years embarked on airport modernisation projects to increase the country’s ability to handle more traffic every year. Newly appointed KAA managing director, Norwegian Jonny Andersen, has highlighted the urgency to expand airport infrastructure. “…we need to expand this facility (JKIA) and I am happy that plans are already under way to call for tenders, this or next month, for the construction of the second landing path,” Mr Andersen said in a recent interview with the Business Daily. “We are planning to start the works before the end of 2017. The second runway will increase the movement of aircraft from 25 to 45 per hour and do away with the delays occasioned by a single runway.”
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
|
|
|
Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
|
obiero wrote:Kenya has in the past few years embarked on airport modernisation projects to increase the country’s ability to handle more traffic every year.
Newly appointed KAA managing director, Norwegian Jonny Andersen, has highlighted the urgency to expand airport infrastructure.
“…we need to expand this facility (JKIA) and I am happy that plans are already under way to call for tenders, this or next month, for the construction of the second landing path,” Mr Andersen said in a recent interview with the Business Daily.
“We are planning to start the works before the end of 2017. The second runway will increase the movement of aircraft from 25 to 45 per hour and do away with the delays occasioned by a single runway.” I once believed in the narrative of regional hub with 5 million visitors per year, 100 planes for KQ and hundreds of routes. Then I saw the losses. Then I got to know that the spoke/hub model is outdated. That point to point flying with longer range, lower capacity, more efficient dreamliners is more profitable than the hub model. The rest is history... Life is short. Live passionately.
|
|
|
Wazua
»
Investor
»
Stocks
»
Kenya Airways...why ignore..
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|