Kenya Airways dismisses talk about competition threat

http://www.eturbonews.co...bout-competition-threat

"Traffic volumes are generally up, tourism is booming again, and business travel has completely revived."

"I think at times, some in the media are submitting to wishful thinking or are influenced by other considerations when they talk about KQ this and KQ that."

"...we are very liquid, even new aircraft purchases are solidly financed."

"...between Nairobi and Juba, has already seen KQ’s share rise into the 30 percent margins..." [This was from a ZERO market share in less than 3 months]

The issue is 'internal' to the Unions but will affect KQ... therefore, if the strike is declared illegal... I say FIRE the fools!

LOL... nope, they did not say that! And KQ would be lying if they said so!

I admire what Fly540 has done... captured a market KQ has floundered about coz of their unwieldy structure... Sort of the Equity Bank of airlines!

The article seems to be about the GROWTH in the entire market (which KQ could not fulfill coz of lack of aircraft) so the cake is much larger (of which KQ has a smaller share) with a larger slice...

@Eddy, If the staff go on strike this time round, I do not anticipate them getting their way. It will also be an opportunity to prune some of the unproductive workers.

I hold 41K shares in KQ and I am sure my investment will suffer in the short run, in the event of a strike. But if mgt keeps on giving in to staff demands without proportionate increase in productivity, I do not seen KQ ever reclaiming its rightful value.

So, Yes I would welcome the strike if that's what it is going to take and YES I will BUY more as the price goes down. Incidentally, the likes of SAA and BA are much more strike prone than KQ and they are still flying high.

@seketes, your numbers seem to defy my logic. Assume KQ uses Embraer 170 (80 seats single class config) running a load factor of 70% for 5 days a week (20 days/month) and charging US$ 300 per pax at an exchange rate of ksh 80 gives a gross of 27 Million. Sasa 50M inatoka wapi?