KQ extends record after tax loss to Sh26.2bn

If Kenya was smart enough n not selfish as they r at the moment, would invite GOU n GOT to invest in the airline in the exchange of unlimited access to these two countries.

I don't see a chance for KQ to return profitable in any near future, esp. with revival attempts of national airlines for Uganda n Tanzania! Both these two countries r in the verge of receiving massive investments in oil n gas n i see their chances to support their sizable airlines though that will involve protecting them from both loss making KQ and profit making ET.

The loser in this protectionism game will obvious remain to be KQ with their overambitious Project mawingu that has failed miserable so far. Anyway, it is too late..
 
LNG investments in gas will be over $30 bln while in coai n iron ore above $15 bln. All these r to happen in Southern regions that will have frequent movements of pple a good niche for soon to be ressurected ATCL. The good thing is TAA has already seen that n invested in improvement of airports n now radars.
 
Geza Ulole said:
If Kenya was smart enough n not selfish as they r at the moment, would invite GOU n GOT to invest in the airline in the exchange of unlimited access to these two countries.

I don't see a chance for KQ to return profitable in any near future, esp. with revival attempts of national airlines for Uganda n Tanzania! Both these two countries r in the verge of receiving massive investments in oil n gas n i see their chances to support their sizable airlines though that will involve protecting them from both loss making KQ and profit making ET.

The loser in this protectionism game will obvious remain to be KQ with their overambitious Project mawingu that has failed miserable so far. Anyway, it is too late..
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How has anyone let you run your tongue unchecked. You honestly, sincerely know NOTHING about corporate ups and downs, here you are busy writing an epitaph on KQ. For your information, read the article you brought and see that revenues are actually up Q on Q, this inspite of a harsh aviation year for everyone this year(except for Brazilian carriers because of Olympics ).

And remember the restructuring plan was meant to be bitter, so stop dishing out sugar coated medicines like bringing your (non) existent expertise in both aviation and business to help out here. Ati bringing in UG and TZ to help in running things at KQ,dont make me scream!! . You had better wait for the official report at year's end to say that kind of clap trap about KQ.

Remember no major routes have been shelved so that means something. Besides, i have it quite reliably that most African nations going for the Olympics are going to transit through Nairobi on their way via Luanda, Angola.

A little lesson for you geza, in as much as KQ did not return a profit last FY, it still has a name, and clients. Reputation in itself is a guarantee for future business, so the company has intangible capital that ATCL can only dream of. Have you considered that in your pseudo analysis???
 
Quickly, whaat? Ati those going to Olympics will transit via Nrb then to Luanda instead of Addis Ababa or J'burg where ET n SAA r having direct connections! Uache upumbavu..
 
Geza Ulole said:
Quickly, whaat? At those going to Olympics will transit via Nrb then to Luanda instead of Addis Ababa or J'burg where ET n SAA r having direct connections! Uache upumbavu..
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Jana niliona serikali ya Kenya ikiomba kwa baraza la mawaziri
Iipatie KQ 10bn

Sasa kama wametangaza hasara ya 26bn
Kweli 10bn itasaidia hapo!!
 
Geza Ulole said:
Quickly, whaat? Ati those going to Olympics will transit via Nrb then to Luanda instead of Addis Ababa or J'burg where ET n SAA r having direct connections! Uache upumbavu..
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Yes geza, upumbavu or not, they aren't likely to pass through JNIA. Many nations will definitely use KQ, kama hiyo ni upumbavu nionyeshe hayo ma russian craft zenu, that is, kama zinaweza kuruka hayo masafa marefu. teh teh teh.
The restructuring period is well and truly underway, it will not be easy, KQ is too big to fail.
 
i was just checking up kqs balance sheets,The balance sheet is not good at all,there is a huge negative equity. Some of the leased out aircrafts were also on lease terms and the lease costs still need to be paid. If any was owned then it is financed through debt and repayments need to be done. The two B777-200ERs were sold way below the net book value and a further loss on disposal booked. There is a rise in finance costs due to a bridging loan taken at a higher interest rate.Maamuzi magumu need to be done here pronto..
 
Quickly, is KQ flying to Rio de Janeiro? If not then don't u think u sound stupid like most Kenyans in here? Who will use JNIA from point of departure n then go n connect a flight again at another hub to Rio?
 
bongo-live, project Mawingu backfired! KQ dream was to control the EA space, not aware Tanzania n Uganda had their own agenda on open space for all airlines!

Right now KQ is fighting against KLM on pretext KLM is making more money out of Tanzanian routes thinking if left alone, will lure the Tanzanian PAX they r in for schock very soon...
 
If only running airlines was as simple as the comments here make it seem.
 
Kenya Airways pilots want deal with KLM terminated
PIC.jpg

Kenya Airline Pilots Association (Kalpa) secretary-general Paul Gichinga (left) and chairman Njoroge Murimi address the media at Laico Hotel in Nairobi on July 27, 2016. PHOTO | EVANS HABIL

In Summary

  • The pilots, through their union the Kenya Airline Pilots Association (Kalpa), argue that the partnership is lopsided in favour of KLM.


Kenya Airways’ pilots want the partnership between the national carrier and Dutch airline KLM terminated, even as they maintained their push for the exit of chief executive Mbuvi Ngunze and board chairman Dennis Awori.

The pilots, through their union the Kenya Airline Pilots Association (Kalpa), argue that the partnership is lopsided in favour of KLM.

Kenya Airways has a route code sharing partnership with KLM, which is also the national carrier’s second-biggest shareholder with a 26.7 per cent stake.

The code share agreement allows Kenya Airways to put its international code on KLM operated flights into Europe and other destinations, offering passengers easier connectivity.

The airline reported an after tax loss of Sh26.2 billion in the year ending March. KQ, as the national carrier is known by its international code, had the year before recorded a Sh25.7 billion net loss. Kalpa says the over 20 year strategic partnership has been skewed in favour of KLM.

Speaking at a press conference on Wednesday, Kalpa secretary general Paul Gichinga said while KQ has lost market presence in Europe, the Dutch carrier continues to expand its network in the African markets, providing direct competition.

“Twenty years ago there was still KQ routes to Copenhagen, Zurich and the market share was bigger in Europe. Since then we have only been operating London, Amsterdam and just recently ended up opening Paris. Look at what KLM has done in the same time, they’re all over Africa where they never used to fly before,” he said.

In East Africa alone, KLM flies to Ethiopia, Uganda, Tanzania and Rwanda while maintaining other prime routes across the continent.

“KLM is not a partner but rather a competitor to KQ, this issue has been highlighted in the past by the Senate committee and by audit findings of New York-based firm, Seabury. It defies logic why Kenya Airways will comfortably cede its strategic routes and managerial dockets to them,” he said.

READ: Why Kenya Airways fired its suing finance chief

Kalpa claims that the Chief Operating Officer and Head of Network planning along with five other directors were hired from KLM without due competitive recruitment.

The new chief operating officer, Jan de Vegt, picked earlier this month, was the managing director of a KLM subsidiary, Cobalt Ground Solutions.

Kalpa also faulted the implementation of the first phase of the carrier’s retrenchment which saw 80 staff sent home. Once completed it could see as many as 600 KQ staff, representing 15 per cent of the total workforce, being declared redundant or redeployed.

Mr Gichinga noted that national carrier has retained foreign employees with more favourable terms of service at the expense of locals with matching skillsets and experience.

“Even as they sent Kenyans home they still maintain about 70 cabin crew from across the globe most of whom were acquired from KLM,” he said.

In February the KQ board appointed consulting firm Deloitte to undertake a forensic audit of the airline’s financial decisions dating back six years.

The firm was to stay for three months within which it was expected to handover two interim reports before submitting the final one.

Kalpa maintains that the only way turnaround the airline is to conclude the forensic audit to root out the corruption contributing to KQs loses.

“There seems to be deliberate action and interference not to investigate fuel hedging, aircraft leasing, revenue collection in regards to the ticket scandals in Europe and other key areas in the business. We believed that forensic audit would send more directors home but even with the partial report released no high level manager has been touched showing there is deliberate action not to hold those responsible of running KQ to the ground accountable,” he said.

Kenya Airways pilots want deal with KLM terminated
 
Kenya Airways' full-year pretax loss narrows 60.9 pct
Thu May 25, 2017 7:40am GMT

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NAIROBI (Reuters) - Kenya Airways Ltd's pretax loss shrank 60.9 percent in the year to end-March to 10.2 billion shillings ($98.84 million), the company said on Thursday.

The carrier, which saw losses mount after a slump in Kenyan tourism and an expensive fleet renewal exercise, swung to an operating profit of 897 million shillings from a loss of 4 billion shillings a year earlier.

The company, part-owned by the state and AirFrance KLM, said it ferried 5.4 percent more passengers to a total of 4.5 million during the period.

It's cabin factor, which measures the average seats occupancy on a flight, improved 4 percentage points to 72.3 percent.

"We still have our tough times but we are looking up," Dick Murianki, the airline's acting finance director, told an investor briefing.

($1 = 103.2000 Kenyan shillings)



(Reporting by Duncan Miriri; Editing by Gopakumar Warrier)

Kenya Airways' full-year pretax loss narrows 60.9 pct | Reuters


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