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Kenya Airways...why ignore..
Rank: Member Joined: 5/29/2016 Posts: 898 Location: Nairobi
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nairobby wrote:ArrestedDev 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 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. He did not "reverse" the sub leases. They just came to an end The first one if I am not wrong was recalled early to serve the NYC route. Just double check.
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Rank: Elder Joined: 6/23/2009 Posts: 14,213 Location: nairobi
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VituVingiSana wrote:sparkly wrote:obiero wrote:sparkly wrote:obiero wrote:sparkly 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.
Historical "news". The loans were converted into shares in the restructuring. There is no new write off. The restructuring was in 2017, while the article states clearly about a debt that remained outstanding as at June 2018.. Reading with spiked eyes is dangerous You think Treasury will wake up and write-off loans on-lent or guaranteed to a private company? You are dreaming my friend. Learn to read news from our beloved media with a pinch of salt. Have you read the national assembly hansard dated 30.04.2019? The write off related to various state agencies and not KQ alone. Further, GoK holding in KQ stands at 48% and it remains the most significant creditor to KQ considering that it has guaranteed the KQLC OMC.. It has and will continue assisting state firms.. Here is the link to the Hansard for that date. http://www.parliament.go...April%202019%28P%29.pdf
Several papers related to the 2019/2020 Budget were presented by Leader of Majority. Show us the discussion on debt write off. Stop stressing the jamaa for facts.  Well. In addition to the write off, Pkosing committee has arrived at a decision to revert KQ ownership to the state with primary focus on reducing the KQLC and KLM stakes.. Final report to be made public on 08.05.2019.. KQ is officially ready for take off
KQ ABP 4.26
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Rank: Member Joined: 6/6/2016 Posts: 167 Location: Nairobi
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senior obiero, I have lost count of how many times you have intimated how KQ is ready for takeoff. are you trolling members or yourself?
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Rank: Elder Joined: 6/23/2009 Posts: 14,213 Location: nairobi
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snifadog wrote:senior obiero, I have lost count of how many times you have intimated how KQ is ready for takeoff. are you trolling members or yourself? The number of times is not important , but the reality of the event. Remember after the restructure and resumption from suspension, the share touched a high of KES 18 barely 19 months ago. This time it shall go beyond. Thank me later!
KQ ABP 4.26
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Rank: Chief Joined: 1/3/2007 Posts: 18,346 Location: Nairobi
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I support the buyout of KQLC's shares by GoK. My gains from KQLC far exceed my 1/50,000,000 loss from GoK. The "minority shareholders" made a choice, unlike KQLC, to buy KQ shares. Wacha wapambane na hali yake! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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VituVingiSana wrote:I support the buyout of KQLC's shares by GoK.
My gains from KQLC far exceed my 1/50,000,000 loss from GoK.
The "minority shareholders" made a choice, unlike KQLC, to buy KQ shares. Wacha wapambane na hali yake! Wanjiku will weep and wail. Life is short. Live passionately.
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Rank: Elder Joined: 6/23/2009 Posts: 14,213 Location: nairobi
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sparkly wrote:VituVingiSana wrote:I support the buyout of KQLC's shares by GoK.
My gains from KQLC far exceed my 1/50,000,000 loss from GoK.
The "minority shareholders" made a choice, unlike KQLC, to buy KQ shares. Wacha wapambane na hali yake! Wanjiku will weep and wail. Clearly out of touch with reality! The Open Offer has been factored as part of final rites to the departing minority shareholders, with KQ also being delisted from the exchange..
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:sparkly wrote:VituVingiSana wrote:I support the buyout of KQLC's shares by GoK.
My gains from KQLC far exceed my 1/50,000,000 loss from GoK.
The "minority shareholders" made a choice, unlike KQLC, to buy KQ shares. Wacha wapambane na hali yake! Wanjiku will weep and wail. Clearly out of touch with reality! The Open Offer has been factored as part of final rites to the departing minority shareholders, with KQ also being delisted from the exchange.. KQLC should be paid out furi furi with interest for being forced to exchange debt for useless shares in a useless firm. Those shareholders who willingly bought KQ shares should be offered ZERO per share Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 1/18/2019 Posts: 185 Location: kenya
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ArrestedDev wrote:nairobby wrote:ArrestedDev 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 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. He did not "reverse" the sub leases. They just came to an end The first one if I am not wrong was recalled early to serve the NYC route. Just double check. Nope, the leases actually came to an end. It was just excellent PR by KQ. I have to commend whoever was handling the PR for the launch of the New York route. You would have thought that was the saving grace for the airline.
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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VituVingiSana wrote:I support the buyout of KQLC's shares by GoK.
My gains from KQLC far exceed my 1/50,000,000 loss from GoK.
The "minority shareholders" made a choice, unlike KQLC, to buy KQ shares. Wacha wapambane na hali yake! Delist the airline and make it 100% state owned. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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