maka wrote:obiero wrote:maka wrote:obiero wrote:maka wrote:obiero wrote:muandiwambeu wrote:When will the real trawling of green bucks begin. Fun and pun intended. HOTAC manenos vipi
You should not believe everything you read on the internet
Nothing wrong here.. New route and logical management. No need to fly empty planes to proove a non existent point
Why start the route in the first place even after being told time and time again that it will be a very very hard sale/sell....
In the other side of the world an Icelandic airline called WOW flies from Dehli to Orlando....with one of the highetst cabin factor ever @ 92%
You expect every other airline to stop selling tickets because KQ now flies to JFK?? Compe ni compe roho safi.. And you do know Atlanta is the next destination followed by DC.. Utajua hujui
Sebastian is making the same mistakes that TN made expanding too fast... I honestly hope it works out for him... I dont like Mbuvi that much but his strategy was shrink first then expand later when things are ok...for the better part of the period he was CEO it worked only problem is that KALPA gave him hell... Suppliers had been paid most of the bank loans were up to date... Salaries were on time (at some point guys were being paid even on 10th of the next month when things were bad)....I rem a couple of flights were denied fuel in various countries coz of debt...In comes Sebastian...Wanton unplanned expansion... Mogadishu was to starts in Jan moved to Nov... Rush to get suppliers...GHA contracts to be signed etc.... Excatly why the stop spend memo was sent.... Give it a few months you will see suppliers crying because of lack of payment... NYC was and will never be a good idea for now... Its clearly coming out even if the likes of akina Obiero and the govt fellows are refuting... All the gains will be eroded in a few months back to square one...
@maka, Sebastian cannot be compared to TN and Ngunze. If Ngunze was to remain as CEO then KQ could have collapsed. @obiero, I have said here again and again that Ngunze was not an astute manager at all. Let me not keep repeating.
@maka, no feeder routes for JFK as of now. Route cannot begin and it breaks even on the 1st and 2nd year. It will only pick up as more routes are added i.e. more transfer pax via NBO. Mogadishu is very key. Turkish is reaping big from the big Somali diapsora and hence the decision made by Sebastian to fastrack. It will help to prop up JFK.
What KQ needs is passengers numbers to increase. The only way to increase is through new routes.
You cannot grow an Airline by shrinking it. You will allow the competitors to dominate and catching up with them will be very hard.
Sebastian is reversing the poor decisions made by Ngunze. There was nothing wrong with expansion. It is only that TN, Mbugua, Ngunze, Mwaniki and their political associates used the oppoturnity to loot. Instead of leasing planes, they opted for debt and inflated aircraft prices. It is corruption and mismanagement which led to the current state of KQ and not expansion.
I mean, you saw the forensic audit report how the looting took place. Do I really need to remind you this?
Ngunze was paying suppliers and staff salaries using loans and proceeds from disposal of assets. He even said on Citizen tv while being interviewed by Terryanne.