As the route is structured, KQ can't make money on cargo. I recently talked to someone who works in an airline. Dreamliner carries 42t of payload. However on a long flight, they have to sacrifice that payload to carry enough fuel. The plane is limited to a certain design maximum take off weight. When you subtract the fuel required to fly for 15 hours from this, they can only take up 27t. KQ has a configuration of 0/30/204 on their Dreamliner. Assuming each pax + bags is 100kg, the fully sold plane (which they seem to be struggling with getting behinds on seats) can theoretically only carry 3.6t of revenue cargo. For perspective, about 9,000 mangos or about 600 boxes of flowers; not much. On shorter flights of 8-10 hours, they can carry everything.

The spare capacity (15t) is money left at the table and burnt on the altar of the prestige of non-stop flying. Not smart.

There are a few ways this route could make money:
* extremely expensive tickets (assuming they can find enough people to pay for the novelty)
* stopover to
- take up more passengers & cargo and/or
- refuel
* stop flying it to dedicate resources to more profitable undertakings
* code share with an American carrier with a hub at JFK to feed them passengers
* get a different aeroplane, that is not capacity-constrained, for the route. A350XWB or 777-200LR come to mind. {Ethiopian operates both types}

I understand this is quite an emotive subject. But there are some tough questions that have been glossed over by the management for the hype. Quite irresponsible for a company in negative equity position, with its principle shareholders hardly in a position to inject additional capital. Also, I would have thought KQLC would be more prudent in safeguarding their interest by perhaps employing aviation finance advisors.

Unrelated, the investment environment in Kenya is quite perilous. Especially when it comes to information. I have noticed journalists regurgitate press releases without critical enquiry. Auditor... Regulators... Additionally, investors, hardly take management to account (the AGM souvenir hunters take the cake). Seems like the only way to make money or safeguard your investments is to have people on the inside feeding you info. What is the solution?

Logic then dictates that if there are 45 pax(or fewer than the configured Number of pax), KQ should therefore carry more pax. Moreover, cargo has more revenue than pax. I guess KQ would be happy to fly 45 pax but the cargo belly be full.

cargo to kenya

@tandich - Thanks for the info.

Question: As much as KQ keeps the sales window open as long as possible...
If KQ knows it will only sell 100 seats [@100 kgs per seat] so there are 134 seat [@100kgs] = 12.4 tons available as cargo. Though I know it's tough to have perishable cargo on stand-by "hoping" for space.

The more I read, from contributors, about the direct non-stop flight, the less exciting it seems.
It seems a NBO-"West Africa"-NYC flight would have been a better bet by reducing 737 frequencies.
1) More cargo from NBO-"West Africa" [already being done]
2) NBO-West Africa pax [already being done]
3)West Africa-NYC pax
4) Less fuel used to carry additional fuel
5) Fewer cabin crew needed per flight since each leg is shorter.

Of course, the flights would also fly vice versa.
West Africa means a busy airport (eg ACC) that is CAT 1 compliant and can be fed for connecting pax.

Thus not an optimal decision at all. Why not refuel bon air. Simply station three tankers at see and uplift fuel at the right moment.
Kwani iko niny, I can station my refuel station in air so long as kq is willing to pay me cash. Ni hayo too.

I will frame this one for my grand children for evening stories.

The stories will revolve around Great turnarounds, S. Mikosz the airline turnaround genius V/S S.Jobs the Apple turnaround Genius,not forgetting M.Joseph who understood the Kenyan peculiar ways and transformed two Kenyan companies to Greatness.

End of the story will be the tens of thousands held in portfolio of both great companies.

@Obiero, should we expect any substantial announcement on the KAA deal?
You had earlier predicted there would be an agreement by end of Nov 2018.

Similar opinion. As it is, KQ with drag down KAA with it.

Guilty as charged.

Dumped KQ three years ago. Since then, the stock has lost 70% of its value.

Guilty as charged.

Dumped KQ three years ago. Since then, the stock has lost 70% of its value.