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Kenya Airways...why ignore..
Rank: Elder Joined: 6/23/2009 Posts: 14,213 Location: nairobi
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Ebenyo wrote:maka wrote:
The government has written off a Sh24.2 billion loan advanced to struggling Kenya Airways in the latest move to keep the national flag carrier in the skies.
In budget documents presented in Parliament this week, the Treasury revealed that the loan was part of Sh27.2 billion worth of dormant loans that the Cabinet authorised to be written off.
Kenya Airways, which made another loss of Sh7.5 billion last year, had not made any attempt to repay the loan and it remained outstanding as at June 30, 2018. This made it the biggest recipient of write offs.
The government, which is the biggest shareholder in the airline, has been pumping money into KQ in an attempt to resuscitate it and pull it out of the red. But the airline has remained in the loss making territory for the last five years.
if the management will not take other huge credit facilities in the next 6 months,this will immediately return kenya airways into positive equity.This means GOK is determined to return KQ into profitability. People outside do not know the machinations ongoing.. This thing will blow up soon https://mobile.nation.co.ke
KQ ABP 4.26
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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maka wrote:
The government has written off a Sh24.2 billion loan advanced to struggling Kenya Airways in the latest move to keep the national flag carrier in the skies.
In budget documents presented in Parliament this week, the Treasury revealed that the loan was part of Sh27.2 billion worth of dormant loans that the Cabinet authorised to be written off.
Kenya Airways, which made another loss of Sh7.5 billion last year, had not made any attempt to repay the loan and it remained outstanding as at June 30, 2018. This made it the biggest recipient of write offs.
The government, which is the biggest shareholder in the airline, has been pumping money into KQ in an attempt to resuscitate it and pull it out of the red. But the airline has remained in the loss making territory for the last five years.
This is the kind of news which infuriates me. Writing off a debt to a commercial company but unable to write off a debt owed to HELB by unemployed graduates amounting to !5 birrion. f***ed up world we live in If Obiero did it, Who Am I?
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Rank: Member Joined: 1/18/2019 Posts: 185 Location: kenya
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maka wrote:
The government has written off a Sh24.2 billion loan advanced to struggling Kenya Airways in the latest move to keep the national flag carrier in the skies.
In budget documents presented in Parliament this week, the Treasury revealed that the loan was part of Sh27.2 billion worth of dormant loans that the Cabinet authorised to be written off.
Kenya Airways, which made another loss of Sh7.5 billion last year, had not made any attempt to repay the loan and it remained outstanding as at June 30, 2018. This made it the biggest recipient of write offs.
The government, which is the biggest shareholder in the airline, has been pumping money into KQ in an attempt to resuscitate it and pull it out of the red. But the airline has remained in the loss making territory for the last five years.
Necessary if govt is truly committed to turning around KQ. I've listened to MJ on trading bell. He really seems committed to the cause. They need to fire whoever isn't sharing part of that vision and start cutting those costs before even thinking of expansion however.
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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nairobby wrote:maka wrote:
The government has written off a Sh24.2 billion loan advanced to struggling Kenya Airways in the latest move to keep the national flag carrier in the skies.
In budget documents presented in Parliament this week, the Treasury revealed that the loan was part of Sh27.2 billion worth of dormant loans that the Cabinet authorised to be written off.
Kenya Airways, which made another loss of Sh7.5 billion last year, had not made any attempt to repay the loan and it remained outstanding as at June 30, 2018. This made it the biggest recipient of write offs.
The government, which is the biggest shareholder in the airline, has been pumping money into KQ in an attempt to resuscitate it and pull it out of the red. But the airline has remained in the loss making territory for the last five years.
Necessary if govt is truly committed to turning around KQ. I've listened to MJ on trading bell. He really seems committed to the cause. They need to fire whoever isn't sharing part of that vision and start cutting those costs before even thinking of expansion however. That was Mbuvi s plan... @Obiero peed on it... He used to say don't be shy to close a route that's not profitable.... Close it... Open it later.... Anyway... Changes in the offing... Capt Karanja is going to be Head of Ground Services... Msee wa Dago High School nice guy... Very thorough and focuses on processes... Director Ground Services has been scrapped... Head of Catering is also being scrapped... Abdalla is retiring... The company will only have a Manager Catering... Operation Excellence moves to Commercial.. Like I said before Jan and KLM crew are all leaving... Plus also the extra Polish guys... Interesting bit everything now revolves around Silling.... She might be the first lady CEO at KQ if Sebastian doesn't renew his contract.... possunt quia posse videntur
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Rank: Elder Joined: 6/23/2009 Posts: 14,213 Location: nairobi
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maka wrote:nairobby wrote:maka wrote:
The government has written off a Sh24.2 billion loan advanced to struggling Kenya Airways in the latest move to keep the national flag carrier in the skies.
In budget documents presented in Parliament this week, the Treasury revealed that the loan was part of Sh27.2 billion worth of dormant loans that the Cabinet authorised to be written off.
Kenya Airways, which made another loss of Sh7.5 billion last year, had not made any attempt to repay the loan and it remained outstanding as at June 30, 2018. This made it the biggest recipient of write offs.
The government, which is the biggest shareholder in the airline, has been pumping money into KQ in an attempt to resuscitate it and pull it out of the red. But the airline has remained in the loss making territory for the last five years.
Necessary if govt is truly committed to turning around KQ. I've listened to MJ on trading bell. He really seems committed to the cause. They need to fire whoever isn't sharing part of that vision and start cutting those costs before even thinking of expansion however. That was Mbuvi s plan... @Obiero peed on it... He used to say don't be shy to close a route that's not profitable.... Close it... Open it later.... Anyway... Changes in the offing... Capt Karanja is going to be Head of Ground Services... Msee wa Dago High School nice guy... Very thorough and focuses on processes... Director Ground Services has been scrapped... Head of Catering is also being scrapped... Abdalla is retiring... The company will only have a Manager Catering... Operation Excellence moves to Commercial.. Like I said before Jan and KLM crew are all leaving... Plus also the extra Polish guys... Interesting bit everything now revolves around Silling.... She might be the first lady CEO at KQ if Sebastian doesn't renew his contract.... Ngunze had a solid plan including the restructuring.. His vision was to shrink and then grow which was sensible. Also asset sales were necessary. Mikosz has a distinctly different plan which includes aggressive revenue scale up and zero asset stripping. Both strategies could work, with first one getting KQ to profit faster but thereafter slower growth while second plan will aide KQ to profitability sooner and quick sustainable growth thereafter
KQ ABP 4.26
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Rank: Chief Joined: 1/3/2007 Posts: 18,346 Location: Nairobi
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obiero wrote:maka wrote:nairobby wrote:maka wrote:
The government has written off a Sh24.2 billion loan advanced to struggling Kenya Airways in the latest move to keep the national flag carrier in the skies.
In budget documents presented in Parliament this week, the Treasury revealed that the loan was part of Sh27.2 billion worth of dormant loans that the Cabinet authorised to be written off.
Kenya Airways, which made another loss of Sh7.5 billion last year, had not made any attempt to repay the loan and it remained outstanding as at June 30, 2018. This made it the biggest recipient of write offs.
The government, which is the biggest shareholder in the airline, has been pumping money into KQ in an attempt to resuscitate it and pull it out of the red. But the airline has remained in the loss making territory for the last five years.
Necessary if govt is truly committed to turning around KQ. I've listened to MJ on trading bell. He really seems committed to the cause. They need to fire whoever isn't sharing part of that vision and start cutting those costs before even thinking of expansion however. That was Mbuvi s plan... @Obiero peed on it... He used to say don't be shy to close a route that's not profitable.... Close it... Open it later.... Anyway... Changes in the offing... Capt Karanja is going to be Head of Ground Services... Msee wa Dago High School nice guy... Very thorough and focuses on processes... Director Ground Services has been scrapped... Head of Catering is also being scrapped... Abdalla is retiring... The company will only have a Manager Catering... Operation Excellence moves to Commercial.. Like I said before Jan and KLM crew are all leaving... Plus also the extra Polish guys... Interesting bit everything now revolves around Silling.... She might be the first lady CEO at KQ if Sebastian doesn't renew his contract.... Ngunze had a solid plan including the restructuring.. His vision was to shrink and then grow which was sensible. Also asset sales were necessary. Mikosz has a distinctly different plan which includes aggressive revenue scale up and zero asset stripping. Both strategies could work, with first one getting KQ to profit faster but thereafter slower growth while second plan will aide KQ to profitability sooner and quick sustainable growth thereafter Without Taxpayers being coerced to forgive loans to KQ, both plans are dead in the water. Taxpayers should not fund KQ anymore. Let "Old KQ" die and a "New KQ" rise from its ashes. Financiers will come in to support New KQ if it has a sustainable business model. 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: 14,213 Location: nairobi
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VituVingiSana wrote:obiero wrote:maka wrote:nairobby wrote:maka wrote:
The government has written off a Sh24.2 billion loan advanced to struggling Kenya Airways in the latest move to keep the national flag carrier in the skies.
In budget documents presented in Parliament this week, the Treasury revealed that the loan was part of Sh27.2 billion worth of dormant loans that the Cabinet authorised to be written off.
Kenya Airways, which made another loss of Sh7.5 billion last year, had not made any attempt to repay the loan and it remained outstanding as at June 30, 2018. This made it the biggest recipient of write offs.
The government, which is the biggest shareholder in the airline, has been pumping money into KQ in an attempt to resuscitate it and pull it out of the red. But the airline has remained in the loss making territory for the last five years.
Necessary if govt is truly committed to turning around KQ. I've listened to MJ on trading bell. He really seems committed to the cause. They need to fire whoever isn't sharing part of that vision and start cutting those costs before even thinking of expansion however. That was Mbuvi s plan... @Obiero peed on it... He used to say don't be shy to close a route that's not profitable.... Close it... Open it later.... Anyway... Changes in the offing... Capt Karanja is going to be Head of Ground Services... Msee wa Dago High School nice guy... Very thorough and focuses on processes... Director Ground Services has been scrapped... Head of Catering is also being scrapped... Abdalla is retiring... The company will only have a Manager Catering... Operation Excellence moves to Commercial.. Like I said before Jan and KLM crew are all leaving... Plus also the extra Polish guys... Interesting bit everything now revolves around Silling.... She might be the first lady CEO at KQ if Sebastian doesn't renew his contract.... Ngunze had a solid plan including the restructuring.. His vision was to shrink and then grow which was sensible. Also asset sales were necessary. Mikosz has a distinctly different plan which includes aggressive revenue scale up and zero asset stripping. Both strategies could work, with first one getting KQ to profit faster but thereafter slower growth while second plan will aide KQ to profitability sooner and quick sustainable growth thereafter Without Taxpayers being coerced to forgive loans to KQ, both plans are dead in the water. Taxpayers should not fund KQ anymore. Let "Old KQ" die and a "New KQ" rise from its ashes. Financiers will come in to support New KQ if it has a sustainable business model. Pkosing report is drafted awaiting spell checks. GoK has come to the rescue of KQ. My prayers answered
KQ ABP 4.26
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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maka wrote:
The government has written off a Sh24.2 billion loan advanced to struggling Kenya Airways in the latest move to keep the national flag carrier in the skies.
In budget documents presented in Parliament this week, the Treasury revealed that the loan was part of Sh27.2 billion worth of dormant loans that the Cabinet authorised to be written off.
Kenya Airways, which made another loss of Sh7.5 billion last year, had not made any attempt to repay the loan and it remained outstanding as at June 30, 2018. This made it the biggest recipient of write offs.
The government, which is the biggest shareholder in the airline, has been pumping money into KQ in an attempt to resuscitate it and pull it out of the red. But the airline has remained in the loss making territory for the last five years.
GoK coming to reality that the hyped merger with JKIA won't save the airline from collapse. The problem of KQ is Operational costs are too high.Every increase in revenue is wiped off by the increase in operational costs Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 4/4/2016 Posts: 2,016 Location: Kitale
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Ericsson wrote:maka wrote:
The government has written off a Sh24.2 billion loan advanced to struggling Kenya Airways in the latest move to keep the national flag carrier in the skies.
In budget documents presented in Parliament this week, the Treasury revealed that the loan was part of Sh27.2 billion worth of dormant loans that the Cabinet authorised to be written off.
Kenya Airways, which made another loss of Sh7.5 billion last year, had not made any attempt to repay the loan and it remained outstanding as at June 30, 2018. This made it the biggest recipient of write offs.
The government, which is the biggest shareholder in the airline, has been pumping money into KQ in an attempt to resuscitate it and pull it out of the red. But the airline has remained in the loss making territory for the last five years.
GoK coming to reality that the hyped merger with JKIA won't save the airline from collapse. The problem of KQ is Operational costs are too high.Every increase in revenue is wiped off by the increase in operational costs Operational costs-2017 was kshs 79,791,000,000. In 2018 was kshs 114,868,000,000.That's a massive 44% increase of kshs 35,077,000,000. If it maintains the same pattern,operating loss will keep increasing YOY. Towards the goal of financial freedom
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Rank: Member Joined: 5/29/2016 Posts: 898 Location: Nairobi
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obiero wrote:maka wrote:nairobby wrote:maka wrote:
The government has written off a Sh24.2 billion loan advanced to struggling Kenya Airways in the latest move to keep the national flag carrier in the skies.
In budget documents presented in Parliament this week, the Treasury revealed that the loan was part of Sh27.2 billion worth of dormant loans that the Cabinet authorised to be written off.
Kenya Airways, which made another loss of Sh7.5 billion last year, had not made any attempt to repay the loan and it remained outstanding as at June 30, 2018. This made it the biggest recipient of write offs.
The government, which is the biggest shareholder in the airline, has been pumping money into KQ in an attempt to resuscitate it and pull it out of the red. But the airline has remained in the loss making territory for the last five years.
Necessary if govt is truly committed to turning around KQ. I've listened to MJ on trading bell. He really seems committed to the cause. They need to fire whoever isn't sharing part of that vision and start cutting those costs before even thinking of expansion however. That was Mbuvi s plan... @Obiero peed on it... He used to say don't be shy to close a route that's not profitable.... Close it... Open it later.... Anyway... Changes in the offing... Capt Karanja is going to be Head of Ground Services... Msee wa Dago High School nice guy... Very thorough and focuses on processes... Director Ground Services has been scrapped... Head of Catering is also being scrapped... Abdalla is retiring... The company will only have a Manager Catering... Operation Excellence moves to Commercial.. Like I said before Jan and KLM crew are all leaving... Plus also the extra Polish guys... Interesting bit everything now revolves around Silling.... She might be the first lady CEO at KQ if Sebastian doesn't renew his contract.... Ngunze had a solid plan including the restructuring.. His vision was to shrink and then grow which was sensible. Also asset sales were necessary. Mikosz has a distinctly different plan which includes aggressive revenue scale up and zero asset stripping. Both strategies could work, with first one getting KQ to profit faster but thereafter slower growth while second plan will aide KQ to profitability sooner and quick sustainable growth thereafter If you don’t grow then no revenue increase at all, not all routes must be profitable. Stop flying and the competitors will seize the opportunity. There are places which KQ should have been flying/ adding frequencies e.g. Capetown, Mauritius but no one initiated till Mikosz did so recently. Ngunze wasn’t the right person for the job. He made so many stupid decisions. KQ is on the knees right now because of him. Even though Mikosz is spending big on himself, the decision to reverse the sub-lease of the B787 is a very bold move. This is one of the stupid decisions made by Ngunze. You cannot sublease a brand new efficient plane, not one but two of them. The arrival of the other B787 and the subsequent deployment to Geneva will further raise revenue for 2019. Very likely for KQ to shave 3 billion off the 7.5 billion loss this year especially if the changes being proposed as reported by @maka are implemented. The issue of expatriates was laid bare during the parliamentary hearing by KAWU and KALPA. The letter by KALPA to Mikosz rebuking him for falsely claiming the pilots take home a big junk of the wages also led to action on the expatriates.
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