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Kenya Airways...why ignore..
Rank: New-farer Joined: 11/15/2013 Posts: 34
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VituVingiSana wrote:http://www.theeastafrican.co.ke/business/Precision-may-not-last-long-in-the-air/-/2560/2097086/-/pg3is2/-/index.html
Things are rough!
Auditors have raised fresh doubts over the future of Tanzania’s largest commercial airline, Precision Air, given its surging losses and liabilities while the government dithers on approving a bailout plan.
An audit report paints a gloomy picture of the loss-making firm, saying its liabilities had exceeded its assets by Tsh83.14 billion ($53 million).
It has also for several years not remitted its statutory deductions and indirect taxes to the government amounting to Tsh19 billion ($12 million) as of March 2013, says the report prepared by the airline’s auditors, Ernst & Young, and tabled at the annual general meeting on November 20.
If PW goes down then KQ will have to take the loss or writedown in 2H 2013-14 I don't get why they are citing fuel costs and currency cashflows as reasons. KQ actually reported gains from fuel derivatives which cover 80% of their costs. Fuel has been on the downturn. Its poor management and poor planning. They need to do total management restructuring.
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Rank: Member Joined: 2/8/2007 Posts: 808
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mnunuzi wrote:VituVingiSana wrote:http://www.theeastafrican.co.ke/business/Precision-may-not-last-long-in-the-air/-/2560/2097086/-/pg3is2/-/index.html
Things are rough!
Auditors have raised fresh doubts over the future of Tanzania’s largest commercial airline, Precision Air, given its surging losses and liabilities while the government dithers on approving a bailout plan.
An audit report paints a gloomy picture of the loss-making firm, saying its liabilities had exceeded its assets by Tsh83.14 billion ($53 million).
It has also for several years not remitted its statutory deductions and indirect taxes to the government amounting to Tsh19 billion ($12 million) as of March 2013, says the report prepared by the airline’s auditors, Ernst & Young, and tabled at the annual general meeting on November 20.
If PW goes down then KQ will have to take the loss or writedown in 2H 2013-14 I don't get why they are citing fuel costs and currency cashflows as reasons. KQ actually reported gains from fuel derivatives which cover 80% of their costs. Fuel has been on the downturn. Its poor management and poor planning. They need to do total management restructuring. @mnunuzi, the MD, CFO, COO/CD have all been employees of KQ seconded PW ever since KQ bought into PW. Which management are you talking about. Tafakari hayo!
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Rank: Member Joined: 11/1/2013 Posts: 257
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mnunuzi wrote:VituVingiSana wrote:http://www.theeastafrican.co.ke/business/Precision-may-not-last-long-in-the-air/-/2560/2097086/-/pg3is2/-/index.html
Things are rough!
Auditors have raised fresh doubts over the future of Tanzania’s largest commercial airline, Precision Air, given its surging losses and liabilities while the government dithers on approving a bailout plan.
An audit report paints a gloomy picture of the loss-making firm, saying its liabilities had exceeded its assets by Tsh83.14 billion ($53 million).
It has also for several years not remitted its statutory deductions and indirect taxes to the government amounting to Tsh19 billion ($12 million) as of March 2013, says the report prepared by the airline’s auditors, Ernst & Young, and tabled at the annual general meeting on November 20.
If PW goes down then KQ will have to take the loss or writedown in 2H 2013-14 I don't get why they are citing fuel costs and currency cashflows as reasons. KQ actually reported gains from fuel derivatives which cover 80% of their costs. Fuel has been on the downturn. Its poor management and poor planning. They need to do total management restructuring. Easy guys ..turn around companies never dissapoint the management has been beated and knocked down,learned their valuable lessons and have now picked up. H1 384m profit form a 7.4Bn loss is evidence of management taking shape.......Well when you are at the bottom of a pit the only direction u can move is up................soon we shall be breaking this 14.0 barrier of resistance. No diagnosis,no pragnosis,no pragnosis no profit......Jesse livermore
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Rank: Elder Joined: 6/23/2009 Posts: 14,303 Location: nairobi
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some more good news COOP, IMH, KEGN, KQ, MTNU
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Rank: New-farer Joined: 11/19/2013 Posts: 33
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Both have shown poor judgement. 
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Rank: Elder Joined: 6/23/2009 Posts: 14,303 Location: nairobi
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solidly approaching KES 14. @wazuans, full year results will send this thing to the high heavens. thank me later COOP, IMH, KEGN, KQ, MTNU
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Rank: Member Joined: 7/1/2008 Posts: 323
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I sold my shares at 13.95 made my shares 40% profit and waiting it to fall farther down i purchase again.
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Rank: Elder Joined: 9/23/2010 Posts: 2,225 Location: Sundowner,Amboseli
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jokes wrote:I sold my shares at 13.95 made my shares 40% profit and waiting it to fall farther down i purchase again.
Im sorry,went down to 12bob. Should have grabbed them there. @SufficientlyP
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Rank: Member Joined: 11/1/2013 Posts: 257
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Lets focus on the good news.from the H1 investors briefing........... Its worth contextualising these first half results against the backdrop of that reporting period, which period included the JKIA fire (that adversely affected transit passengers through Nairobi), the terror attack at Westgate amongst other headline events.
Kenya Airways took delivery of its first Boeing 777-300ER this month and expects two more of the same planes in 2014. It also expects Boeing to deliver its first four Boeing 787 Dreamliner planes starting in March.
The new Dreamliners will replace the airline's ageing fleet of B-767s for long-haul routes, offering 20 per cent more fuel efficiency.
The average price of jet fuel per gallon in US cents declined 10 per cent versus the previous year and I expect that trend to remain intact in second half as the US and Iran continue to deflate the geopolitical premium in the price of oil. Also consider that fuel Costs represented 37 per cent of total operating costs - See more at: http://www.the-star.co.k...th#sthash.gBES8uff.dpuf
My target price is 20 bob+ by June 2014. This counter presents for me an upside potential of +45% within the next 6 months. No diagnosis,no pragnosis,no pragnosis no profit......Jesse livermore
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