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Kenya Airways...why ignore..
Rank: Member Joined: 5/29/2016 Posts: 898 Location: Nairobi
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maka wrote:maka wrote:ArrestedDev wrote:obiero wrote:Ericsson wrote:Kq needs to quicken growth of revenue to double digits or abt 8-9% not the 3.1% we saw in HY2018. It's coming chief Yes but it will take time. Initially JFK will lead to higher operating costs i.e. loss making route until breakeven/ scale down if passengers numbers does not pick up. This route is also dependent on other new routes. However,under Mikosz leadership you can see highlights that can shift the tide to propel the KQ flight to a safe landing in the black (profit zone)e.g. cheaper and easy available parts and maintenance contract with Boeing,new menu, new routes, new codeshare agreements, savings if the engineers are finally shown the door and many more which could not have been possible under Ngunze. @maka, can you confirm that the suspended engineers will be finally terminated after the recent court of appeal ruling?  Let me leave this here... @arrested Most actualy went back to work...They had a panel hearing a few months back the the ring leaders will def be fired...Everyone individually explained why they participated in the strike...Some came some dint show up... The max passenger number the dreamliner will carry is 178 instead of 234....Hapa Kuna shida.... What about the B772 parked near the hanger? Did you find out if it is already sold? They can lease another B772 as they wait for B773 with Turkish. It is true with fuel to carry and cargo then the no. of passengers need to reduce.
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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ArrestedDev wrote:maka wrote:maka wrote:ArrestedDev wrote:obiero wrote:Ericsson wrote:Kq needs to quicken growth of revenue to double digits or abt 8-9% not the 3.1% we saw in HY2018. It's coming chief Yes but it will take time. Initially JFK will lead to higher operating costs i.e. loss making route until breakeven/ scale down if passengers numbers does not pick up. This route is also dependent on other new routes. However,under Mikosz leadership you can see highlights that can shift the tide to propel the KQ flight to a safe landing in the black (profit zone)e.g. cheaper and easy available parts and maintenance contract with Boeing,new menu, new routes, new codeshare agreements, savings if the engineers are finally shown the door and many more which could not have been possible under Ngunze. @maka, can you confirm that the suspended engineers will be finally terminated after the recent court of appeal ruling? Let me leave this here... @arrested Most actualy went back to work...They had a panel hearing a few months back the the ring leaders will def be fired...Everyone individually explained why they participated in the strike...Some came some dint show up... The max passenger number the dreamliner will carry is 178 instead of 234....Hapa Kuna shida.... What about the B772 parked near the hanger? Did you find out if it is already sold? They can lease another B772 as they wait for B773 with Turkish. It is true with fuel to carry and cargo then the no. of passengers need to reduce. @maka due to seat configuration or what?
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:ArrestedDev wrote:maka wrote:maka wrote:ArrestedDev wrote:obiero wrote:Ericsson wrote:Kq needs to quicken growth of revenue to double digits or abt 8-9% not the 3.1% we saw in HY2018. It's coming chief Yes but it will take time. Initially JFK will lead to higher operating costs i.e. loss making route until breakeven/ scale down if passengers numbers does not pick up. This route is also dependent on other new routes. However,under Mikosz leadership you can see highlights that can shift the tide to propel the KQ flight to a safe landing in the black (profit zone)e.g. cheaper and easy available parts and maintenance contract with Boeing,new menu, new routes, new codeshare agreements, savings if the engineers are finally shown the door and many more which could not have been possible under Ngunze. @maka, can you confirm that the suspended engineers will be finally terminated after the recent court of appeal ruling? Let me leave this here... @arrested Most actualy went back to work...They had a panel hearing a few months back the the ring leaders will def be fired...Everyone individually explained why they participated in the strike...Some came some dint show up... The max passenger number the dreamliner will carry is 178 instead of 234....Hapa Kuna shida.... What about the B772 parked near the hanger? Did you find out if it is already sold? They can lease another B772 as they wait for B773 with Turkish. It is true with fuel to carry and cargo then the no. of passengers need to reduce. @maka due to seat configuration or what? Payload is restricted... possunt quia posse videntur
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Rank: Member Joined: 5/29/2016 Posts: 898 Location: Nairobi
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ArrestedDev wrote:maka wrote:maka wrote:ArrestedDev wrote:obiero wrote:Ericsson wrote:Kq needs to quicken growth of revenue to double digits or abt 8-9% not the 3.1% we saw in HY2018. It's coming chief Yes but it will take time. Initially JFK will lead to higher operating costs i.e. loss making route until breakeven/ scale down if passengers numbers does not pick up. This route is also dependent on other new routes. However,under Mikosz leadership you can see highlights that can shift the tide to propel the KQ flight to a safe landing in the black (profit zone)e.g. cheaper and easy available parts and maintenance contract with Boeing,new menu, new routes, new codeshare agreements, savings if the engineers are finally shown the door and many more which could not have been possible under Ngunze. @maka, can you confirm that the suspended engineers will be finally terminated after the recent court of appeal ruling? Let me leave this here... @arrested Most actualy went back to work...They had a panel hearing a few months back the the ring leaders will def be fired...Everyone individually explained why they participated in the strike...Some came some dint show up... The max passenger number the dreamliner will carry is 178 instead of 234....Hapa Kuna shida.... What about the B772 parked near the hanger? Did you find out if it is already sold? They can lease another B772 as they wait for B773 with Turkish. It is true with fuel to carry and cargo then the no. of passengers need to reduce. This B772 is already sold to KMW Leasing in the US as of 2nd August, 2018.
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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maka wrote:obiero wrote:ArrestedDev wrote:maka wrote:maka wrote:ArrestedDev wrote:obiero wrote:Ericsson wrote:Kq needs to quicken growth of revenue to double digits or abt 8-9% not the 3.1% we saw in HY2018. It's coming chief Yes but it will take time. Initially JFK will lead to higher operating costs i.e. loss making route until breakeven/ scale down if passengers numbers does not pick up. This route is also dependent on other new routes. However,under Mikosz leadership you can see highlights that can shift the tide to propel the KQ flight to a safe landing in the black (profit zone)e.g. cheaper and easy available parts and maintenance contract with Boeing,new menu, new routes, new codeshare agreements, savings if the engineers are finally shown the door and many more which could not have been possible under Ngunze. @maka, can you confirm that the suspended engineers will be finally terminated after the recent court of appeal ruling? Let me leave this here... @arrested Most actualy went back to work...They had a panel hearing a few months back the the ring leaders will def be fired...Everyone individually explained why they participated in the strike...Some came some dint show up... The max passenger number the dreamliner will carry is 178 instead of 234....Hapa Kuna shida.... What about the B772 parked near the hanger? Did you find out if it is already sold? They can lease another B772 as they wait for B773 with Turkish. It is true with fuel to carry and cargo then the no. of passengers need to reduce. @maka due to seat configuration or what? Payload is restricted... This is understandable considering the flight time over the Atlantic Ocean and the average size of the persons who will be plying the route 
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Member Joined: 5/6/2008 Posts: 199
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maka wrote:
The max passenger number the dreamliner will carry is 178 instead of 234....Hapa Kuna shida....
Airlines flying flights of similar length deploy the Boeing 777-200LR (15,800km), Airbus A340 (17,000km) or the A350-900/1000 (15,000/15,600km). The manufacturer’s advertised range for the Boeing 787-8 that KQ will deploy is 13,600km; theoretically enough to cover the 11,386km to New York from Nairobi. However, that is only at the most optimum conditions with little load. Remember, more load (passengers and cargo) = more money for the airline. Which is why I think @maka says they will limit numbers to 178 and, most likely, no cargo. What is so special about KQ to allow them to use the wrong tool for the job and succeed? No amount of marketing juice or nationalistic hubris can alter the laws of economics. The only way is to charge a song in a competitive market with very price-sensitive customers (who don’t mind a longer journey time). Good luck with that. Word is the bookings are very dismal (the best is under 100), for a route that has been selling for months. Add to that, they’re starting with a daily flight; a good way to multiply the coming losses very fast. That management forecast for the effect on revenues is extremely optimistic, and crucially omits the inevitable negative effect on the bottom-line and equity.
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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tandich wrote:maka wrote:
The max passenger number the dreamliner will carry is 178 instead of 234....Hapa Kuna shida....
Airlines flying flights of similar length deploy the Boeing 777-200LR (15,800km), Airbus A340 (17,000km) or the A350-900/1000 (15,000/15,600km). The manufacturer’s advertised range for the Boeing 787-8 that KQ will deploy is 13,600km; theoretically enough to cover the 11,386km to New York from Nairobi. However, that is only at the most optimum conditions with little load. Remember, more load (passengers and cargo) = more money for the airline. Which is why I think @maka says they will limit numbers to 178 and, most likely, no cargo. What is so special about KQ to allow them to use the wrong tool for the job and succeed? No amount of marketing juice or nationalistic hubris can alter the laws of economics. The only way is to charge a song in a competitive market with very price-sensitive customers (who don’t mind a longer journey time). Good luck with that. Word is the bookings are very dismal (the best is under 100), for a route that has been selling for months. Add to that, they’re starting with a daily flight; a good way to multiply the coming losses very fast. That management forecast for the effect on revenues is extremely optimistic, and crucially omits the inevitable negative effect on the bottom-line and equity. @tandich you could be right, but then again you also could be wrong. How many direct USA flights originate from Africa daily. A continent of over 1.26 billion people! KQ is Africa's third largest airline. Assuming just 0.5% of these people would want to travel to New York per year.. Kenya is a hub of continental repute and with KQs linkage in Africa, I bet that the daily cabin would almost be filled. Its not a bad destination, at the right price. Obviously, the first years would not be profitable but in the overall plan of things, its a good route to have..
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Chief Joined: 1/3/2007 Posts: 18,095 Location: Nairobi
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Doesn't KQ have a 777-200LR? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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VituVingiSana wrote:Doesn't KQ have a 777-200LR? Nope....They leased them out to Turkish think they will be back next year... possunt quia posse videntur
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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maka wrote:VituVingiSana wrote:Doesn't KQ have a 777-200LR? Nope....They leased them out to Turkish think they will be back next year... They had the larger version 300 ER... possunt quia posse videntur
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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maka wrote:maka wrote:VituVingiSana wrote:Doesn't KQ have a 777-200LR? Nope....They leased them out to Turkish think they will be back next year... They had the larger version 300 ER... Open skies https://www.businessdail...43156-orq5sgz/index.html
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Chief Joined: 1/3/2007 Posts: 18,095 Location: Nairobi
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maka wrote:maka wrote:VituVingiSana wrote:Doesn't KQ have a 777-200LR? Nope....They leased them out to Turkish think they will be back next year... They had the larger version 300 ER... Why can't they use these instead of the 787s so they can carry additional cargo + passengers? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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VituVingiSana wrote:maka wrote:maka wrote:VituVingiSana wrote:Doesn't KQ have a 777-200LR? Nope....They leased them out to Turkish think they will be back next year... They had the larger version 300 ER... Why can't they use these instead of the 787s so they can carry additional cargo + passengers? Beats everyone....That would have worked esp with less frequencies.... 3 times a week or so...Def the plane would be packed instead of this daily flights... Kenya Airways (KQ, Nairobi Jomo Kenyatta) is planning to take back its two B787-8s and three B777-300(ER)s, currently sub-leased to each of Oman Air (WY, Muscat) and Turkish Airlines (TK, Istanbul Atatürk), as part of its five-year growth plan, Chief Executive Officer (CEO) Sebastian Mikosz has disclosed. The Kenyan carrier disposed of the five aircraft as part of a 2016 cost-cutting plan aimed at stemming continual losses through capacity cuts and network pruning. Speaking to Bloomberg this week, Mikosz said the returning widebodies would allow Kenya Airways to boost revenue flows through the launch of as many as 20 new routes in Africa, Europe and Asia over the next five years. Board approval for the new plan will be sought in April. Kenya Airways currently operates a widebody fleet of seven B787-8s alongside two B737-700s, eight B737-800s, and fifteen EMB-190s on flights covering Kenya, as well as Sub-Saharan Africa, China, Thailand, India, the United Arab Emirates (UAE), Saudi Arabia, the Netherlands, France, and the United Kingdom. The sub-leased B787-8s and B777s will return to Kenya Airways' service between September this year and December 2019. One of the returning aircraft will be used to operate the new Nairobi Jomo Kenyatta-New York JFK route that will be launched in October, he said. possunt quia posse videntur
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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maka wrote:VituVingiSana wrote:maka wrote:maka wrote:VituVingiSana wrote:Doesn't KQ have a 777-200LR? Nope....They leased them out to Turkish think they will be back next year... They had the larger version 300 ER... Why can't they use these instead of the 787s so they can carry additional cargo + passengers? Beats everyone....That would have worked esp with less frequencies.... 3 times a week or so...Def the plane would be packed instead of this daily flights... Kenya Airways (KQ, Nairobi Jomo Kenyatta) is planning to take back its two B787-8s and three B777-300(ER)s, currently sub-leased to each of Oman Air (WY, Muscat) and Turkish Airlines (TK, Istanbul Atatürk), as part of its five-year growth plan, Chief Executive Officer (CEO) Sebastian Mikosz has disclosed. The Kenyan carrier disposed of the five aircraft as part of a 2016 cost-cutting plan aimed at stemming continual losses through capacity cuts and network pruning. Speaking to Bloomberg this week, Mikosz said the returning widebodies would allow Kenya Airways to boost revenue flows through the launch of as many as 20 new routes in Africa, Europe and Asia over the next five years. Board approval for the new plan will be sought in April. Kenya Airways currently operates a widebody fleet of seven B787-8s alongside two B737-700s, eight B737-800s, and fifteen EMB-190s on flights covering Kenya, as well as Sub-Saharan Africa, China, Thailand, India, the United Arab Emirates (UAE), Saudi Arabia, the Netherlands, France, and the United Kingdom. The sub-leased B787-8s and B777s will return to Kenya Airways' service between September this year and December 2019. One of the returning aircraft will be used to operate the new Nairobi Jomo Kenyatta-New York JFK route that will be launched in October, he said. Probably fuel costs... Approximate fuel consumption the 777-300ER is quite a guzzler; Boeing 787-9 — 5400 kg/h Boeing 787-8 — 4800 kg/h Boeing 747-8 — 10200 kg/h Boeing 777-200 — 6200 kg/h Boeing 777-200ER — 6700 kg/h Boeing 777-200LR — 6800kg/h Boeing 777-300ER — 7800 kg/h Boeing 767-300ER — 4800 kg/h Boeing 767-400ER — 5200 kg/h possunt quia posse videntur
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Rank: Chief Joined: 1/3/2007 Posts: 18,095 Location: Nairobi
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Though the 777-300ER would carry more pax and cargo so the extra fuel consumed (vs the 787-8) would be recovered through higher revenue assuming they can fly at least 80% LF. I think Mikosz said that the daily flights were to provide certainty for those flying on business. Of course, an alternate could have been 3/week direct by KQ and 4/week using a connecting flight via SkyTeam (CDG or AMS). Good luck to KQ. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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I like the confidence of wazua pseudo airline CEO giving guidance to an established CEO of 20 years experience, being Sebastian Mikosz the redeemer.. Its almost comical. As @maka states its all about fuel efficiency on the Dreamliner. But meanwhile all focus is on the KAA tie up.. This will personally impact me. KES 30 is my projection but at KES 22, I can take a bow
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:I like the confidence of wazua pseudo airline CEO giving guidance to an established CEO of 20 years experience, being Sebastian Mikosz the redeemer.. Its almost comical. As @maka states its all about fuel efficiency on the Dreamliner. But meanwhile all focus is on the KAA tie up.. This will personally impact me. KES 30 is my projection but at KES 22, I can take a bow Sebastian is more of a tour agent... Told you Yves was the best guy for that job... Massive cancelations in the offing cockpit crew not happy.... possunt quia posse videntur
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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maka wrote:obiero wrote:I like the confidence of wazua pseudo airline CEO giving guidance to an established CEO of 20 years experience, being Sebastian Mikosz the redeemer.. Its almost comical. As @maka states its all about fuel efficiency on the Dreamliner. But meanwhile all focus is on the KAA tie up.. This will personally impact me. KES 30 is my projection but at KES 22, I can take a bow Sebastian is more of a tour agent... Told you Yves was the best guy for that job... Massive cancelations in the offing cockpit crew not happy.... Matusi tafadhali please uwache.. That guy has pedigree
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Chief Joined: 1/3/2007 Posts: 18,095 Location: Nairobi
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obiero wrote:I like the confidence of wazua pseudo airline CEO giving guidance to an established CEO of 20 years experience, being Sebastian Mikosz the redeemer.. Its almost comical. As @maka states its all about fuel efficiency on the Dreamliner. But meanwhile all focus is on the KAA tie up.. This will personally impact me. KES 30 is my projection but at KES 22, I can take a bow Ahhh! Ngunze the Pretender. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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@obiero continues to hold 95,000 KQ shares at ABP of KES 21.9 representing his final stand, with no further purchase, courtesy of the uncertainty upon KQs previously proposed Open Offer. It's now a matter of waiting and/or hoping for the KAA-KQ tie up; in which P&L factors holding constant, will turn KQ profitable instantly upon merger.. KES 30 per share is my bet on the larger refreshed entity, with assured increased annual revenue of KES 15B at the least. My biggest gamble in securities-life so far as no one now knows where the dice may fall. Maombi.. 
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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