Nipate
Forum => Kenya Discussion => Topic started by: RVtitem on July 22, 2016, 04:47:05 AM
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The airline reported a net loss of
Ks26.2bn ($258m) for 2015-16, up from Ks25.7bn in the previous financial year, as its results were hit by a series of one-off items including charges linked to a poor fuel hedging policy.
https://next.ft.com/content/006aacfe-4f44-11e6-8172-e39ecd3b86fc
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They should get rid of the MD and bring in someone with zero links to the cartel that wants to take over KQ. I am afraid though it is too late. The rush is to grab KQ before Uhuru goes. Some bright minds have seen the writing on the wall and hence the rush.
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You're free to buy KQ dirty cheap shares in Nairobi Stocko Exchange.
They should get rid of the MD and bring in someone with zero links to the cartel that wants to take over KQ. I am afraid though it is too late. The rush is to grab KQ before Uhuru goes. Some bright minds have seen the writing on the wall and hence the rush.
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So, Naikuni left the firm of rocky grounds. THe cooked the books before he left?
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I do not think that is what the Cartel wants. Their interest is the total collapse of KQ so they can launch their own airline.
Speaking of buying how many shares do I need to control it?
You're free to buy KQ dirty cheap shares in Nairobi Stocko Exchange.
They should get rid of the MD and bring in someone with zero links to the cartel that wants to take over KQ. I am afraid though it is too late. The rush is to grab KQ before Uhuru goes. Some bright minds have seen the writing on the wall and hence the rush.
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I do not think that is what the Cartel wants. Their interest is the total collapse of KQ so they can launch their own airline.
Speaking of buying how many shares do I need to control it?
Instead of making wild allegations, better have a look at the 2015 & 2016 financials to get the correct facts then discuss the issue soberly (note: I'm not exonerating Naikuni's shoddy leadership at all).
These are the 2016 financials:
[pdf]https://www.kenya-airways.com/uploadedFiles/Investor%20Briefing%2021%20July%202016.PDF[/pdf]
These are the 2015 financials:
[pdf]https://www.kenya-airways.com/uploadedFiles/Global_Website/KQ_Annual_Report_2015.PDF[/pdf]
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KQ's malady is mismanagement. Sorry story of many Kenyan enterprises, no discipline at all. Totally muds Naikuni's shining armor.
Mismanagement = incompetence
Simanova needs to stop the pointless politics. The fleet expansion 10-year plan if you look at the papers and listen to industry experts was solid with poor execution. All analysts have criticized the shameful cutdown by McKinsey of fleet, flights, partnerships, Heathrow slot, etc. Ethiopia and Middle East airlines have simply snapped the lost opportunities thrown at them. Shame, they could almost monetize the cutbacks and cash in. Not just toss meat :(
Fuel hedging policy... such stupidity. Many people foresaw oil prices plummet. But KQ hedged so still paid high prices. CFO got fired for it.
It's quite possible along with the McKinsey turnaround most of the big guys will be shown the door. Not all failure is political Mr Simanova.
Meanwhile Ethiopian Airline is minting 15B net profit thereabouts. Full parastatal no less.
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Ethiopians executes people who are corrupt, so does Tanzania.
KQ will be no more in 10yrs if run by the same group.
KQ's malady is mismanagement. Sorry story of many Kenyan enterprises, no discipline at all. Totally muds Naikuni's shining armor.
Mismanagement = incompetence
Simanova needs to stop the pointless politics. The fleet expansion 10-year plan if you look at the papers and listen to industry experts was solid with poor execution. All analysts have criticized the shameful cutdown by McKinsey of fleet, flights, partnerships, Heathrow slot, etc. Ethiopia and Middle East airlines have simply snapped the lost opportunities thrown at them. Shame, they could almost monetize the cutbacks and cash in. Not just toss meat :(
Fuel hedging policy... such stupidity. Many people foresaw oil prices plummet. But KQ hedged so still paid high prices. CFO got fired for it.
It's quite possible along with the McKinsey turnaround most of the big guys will be shown the door. Not all failure is political Mr Simanova.
Meanwhile Ethiopian Airline is minting 15B net profit thereabouts. Full parastatal no less.
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For sure, same as the Chinese. We need life sentence. Death is illogical for known reason of possible future exoneration. Kenyan parastatals and majority-state owned: KQ, Railways, Kplc, nhif, nssf, national bank,... such a nosebleed.
Pundit, while praising his dynamic duo, glosses over the subject as if it has nothing to do with our sorry state. Public health, industrial power & energy, pensions, etc. Very key stuff soured by corruption.
Yet we have Jubilee co-chair Kiraitu openly flaunting Anglo Leasing hotel and anti-corruption agencies chasing their own tails. This is a "small" issue that does affect public opinion.
Ethiopians executes people who are corrupt, so does Tanzania.
KQ will be no more in 10yrs if run by the same group.
KQ's malady is mismanagement. Sorry story of many Kenyan enterprises, no discipline at all. Totally muds Naikuni's shining armor.
Mismanagement = incompetence
Simanova needs to stop the pointless politics. The fleet expansion 10-year plan if you look at the papers and listen to industry experts was solid with poor execution. All analysts have criticized the shameful cutdown by McKinsey of fleet, flights, partnerships, Heathrow slot, etc. Ethiopia and Middle East airlines have simply snapped the lost opportunities thrown at them. Shame, they could almost monetize the cutbacks and cash in. Not just toss meat :(
Fuel hedging policy... such stupidity. Many people foresaw oil prices plummet. But KQ hedged so still paid high prices. CFO got fired for it.
It's quite possible along with the McKinsey turnaround most of the big guys will be shown the door. Not all failure is political Mr Simanova.
Meanwhile Ethiopian Airline is minting 15B net profit thereabouts. Full parastatal no less.
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KQ needs a white CEO, CFO, COO. Then we are back to business.
Ethiopians executes people who are corrupt, so does Tanzania.
KQ will be no more in 10yrs if run by the same group.
KQ's malady is mismanagement. Sorry story of many Kenyan enterprises, no discipline at all. Totally muds Naikuni's shining armor.
Mismanagement = incompetence
Simanova needs to stop the pointless politics. The fleet expansion 10-year plan if you look at the papers and listen to industry experts was solid with poor execution. All analysts have criticized the shameful cutdown by McKinsey of fleet, flights, partnerships, Heathrow slot, etc. Ethiopia and Middle East airlines have simply snapped the lost opportunities thrown at them. Shame, they could almost monetize the cutbacks and cash in. Not just toss meat :(
Fuel hedging policy... such stupidity. Many people foresaw oil prices plummet. But KQ hedged so still paid high prices. CFO got fired for it.
It's quite possible along with the McKinsey turnaround most of the big guys will be shown the door. Not all failure is political Mr Simanova.
Meanwhile Ethiopian Airline is minting 15B net profit thereabouts. Full parastatal no less.
-
KQ's malady is mismanagement. Sorry story of many Kenyan enterprises, no discipline at all. Totally muds Naikuni's shining armor.
Mismanagement = incompetence
Simanova needs to stop the pointless politics. The fleet expansion 10-year plan if you look at the papers and listen to industry experts was solid with poor execution. All analysts have criticized the shameful cutdown by McKinsey of fleet, flights, partnerships, Heathrow slot, etc. Ethiopia and Middle East airlines have simply snapped the lost opportunities thrown at them. Shame, they could almost monetize the cutbacks and cash in. Not just toss meat :(
Fuel hedging policy... such stupidity. Many people foresaw oil prices plummet. But KQ hedged so still paid high prices. CFO got fired for it.
It's quite possible along with the McKinsey turnaround most of the big guys will be shown the door. Not all failure is political Mr Simanova.
Meanwhile Ethiopian Airline is minting 15B net profit thereabouts. Full parastatal no less.
Very true. The main problem with KQ was the astonishing mismanagement of Naikuni and the BoD. The Westgate attacks of 2013 also played a big role in the misfortunes of KQ.
Fuel hedging has been normal practice for airlines for years. Nobody ever expected the prices to fall as they did.
After decades of spending billions of dollars to hedge against rising fuel costs, more airlines, including some of the world’s largest, are backing off after getting burned by low oil prices.
When oil prices were rising, hedging often paid off for the airlines, helping them reduce their exposure to higher fuel costs. But the speed of the 58% plunge in oil prices since mid-2014 caught the industry by surprise and turned some hedges into big money losers.
Last year, Delta Air Lines Inc., the nation’s No. 2 airline by traffic, racked up hedging losses of $2.3 billion, while United Continental Holdings Inc., the No. 3 carrier, lost $960 million on its bets.
http://www.wsj.com/articles/airlines-pull-back-on-hedging-fuel-costs-1458514901
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CFO was fired for hedging despite clear advisories on impending oilprice plummet. Nothing to do with fleet expansion as people suspect. There has been alot of operational inefficiencies that caused the very poor execution, both fleet and route management. These were not the role of CFO but Naikuni and COO(Mbuvi) squarely. Such as delays, poor passenger service and pricing.
Hedging is a cashflow item = CFO job.
Mismanagement I insist.
KQ's malady is mismanagement. Sorry story of many Kenyan enterprises, no discipline at all. Totally muds Naikuni's shining armor.
Mismanagement = incompetence
Simanova needs to stop the pointless politics. The fleet expansion 10-year plan if you look at the papers and listen to industry experts was solid with poor execution. All analysts have criticized the shameful cutdown by McKinsey of fleet, flights, partnerships, Heathrow slot, etc. Ethiopia and Middle East airlines have simply snapped the lost opportunities thrown at them. Shame, they could almost monetize the cutbacks and cash in. Not just toss meat :(
Fuel hedging policy... such stupidity. Many people foresaw oil prices plummet. But KQ hedged so still paid high prices. CFO got fired for it.
It's quite possible along with the McKinsey turnaround most of the big guys will be shown the door. Not all failure is political Mr Simanova.
Meanwhile Ethiopian Airline is minting 15B net profit thereabouts. Full parastatal no less.
Very true. The main problem with KQ was the astonishing mismanagement of Naikuni and the BoD. The Westgate attacks of 2013 also played a big role in the misfortunes of KQ.
Fuel hedging has been normal practice for airlines for years. Nobody ever expected the prices to fall as they did.
After decades of spending billions of dollars to hedge against rising fuel costs, more airlines, including some of the world’s largest, are backing off after getting burned by low oil prices.
When oil prices were rising, hedging often paid off for the airlines, helping them reduce their exposure to higher fuel costs. But the speed of the 58% plunge in oil prices since mid-2014 caught the industry by surprise and turned some hedges into big money losers.
Last year, Delta Air Lines Inc., the nation’s No. 2 airline by traffic, racked up hedging losses of $2.3 billion, while United Continental Holdings Inc., the No. 3 carrier, lost $960 million on its bets.
http://www.wsj.com/articles/airlines-pull-back-on-hedging-fuel-costs-1458514901