Nipate
Forum => Kenya Discussion => Topic started by: Nowayhaha on August 30, 2020, 10:59:11 PM
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Embraer Jets, Boeing 787 and 737-NG are owned by Tsavo Limited, Samburu Limited and Amboseli Limited , all registered in offshore companies located cayman islands .
Bottomline the Government has been bailing out KQ since 2012 for an average 20 billions which essentially goes back to pay lease charges meaning ending up in the aforementioned companies. Now that it has become untenable the government has decided to " nationalize" the company simply meaning instead of bailing out the company every year it would officialize paying lease charges to Tsavo, Samburu and Amboseli.
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Very simple answer. Kenyatta family. Those deals were signed when Wanjohi was finance minister.
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Very simple answer. Kenyatta family. Those deals were signed when Wanjohi was finance minister.
The deals eat a big chunk of KQ revenues , In short here is the break down
Taking example of last financial year
KQ generated 129 Billion Shillings in revenue
Lease of A/C charges is around 82 Billion KSHS
Fuel Costs around 33 Billion KSHS
Suppliers paid 20 Billion KSHS
Salaries take up around 12 Billion
Total around 147 Billion KSHS out of 129 Billion KSHS generated
The lease charges are around roughly at minimum Twice the market rate i.e. in KQs case the correct lease charges should be around 40 Billion meaning KQ would still be profitable company ( would have made a profit of 22 Billion KSHS) Instead its the Leasing companies (Tsavo+Amboseli+Samburu taking away 40 Billion )
Tsavo+Amboseli+Samburu are offshore companies and no one knows their directors - They are what are called special purpose vehicles - Where Owners of such companies take loan in this case from standard charter and Afro Exim , guarantee the loan (one has to have big money) then buy the A/Cs using loan money in this case ERJ Jets + Boeing 787 & Boeing T37 NG) then lease the A/Cs to airlines at exuberant fees ( in KQ case twice as much the market price ) , The company makes its money by being paid monthly lease fees pay the loan and pocket the change ( Big Money)
Now who are the directors /owners of Tsavo+Amboseli+Samburu ???
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In a statement to the newsroom, KQ Managing Director Titus Naikuni said the two firms, Samburu Limited and Amboseli Limited based in Cayman Islands, were incorporated by the airline’s lenders Standard Chartered Bank and the African Export Import Bank (Afriexim)
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Wacheni Fitina.
If you want to hide - you cannot call them Samburu, Tsavo and etc. Previously they had Simba.
The offshore companies are owned by KQ lenders - StanChart and Afriexim.
https://www.capitalfm.co.ke/business/2012/11/kq-denies-racket-in-aircraft-purchase-deal/
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Wacheni Fitina.
If you want to hide - you cannot call them Samburu, Tsavo and etc. Previously they had Simba.
The offshore companies are owned by KQ lenders - StanChart and Afriexim.
https://www.capitalfm.co.ke/business/2012/11/kq-denies-racket-in-aircraft-purchase-deal/
Come on RV , you are better than this , Banks are in the business of giving out loans and not owning companies especially aviation related companies .
from the link you provided - Reread the statement carefully . Simba scheme too was the same scam and it seems the " unknown businessmen " learnt from it and decided to go from 4 Aircraft to more than 25 Aircrafts . Pray tell me why the 4 A/Cs 2 were sold at throw away price and 2 were converted to cargo aircraft after lease came to an end .
In the scheme one need to have enough money to act as a guarantor , get the big loans and buy the A/Cs -( Standard charter and AfroExim do not own any aircrafts they would even dare ) then lease the A/Cs in this case to KQ -If you notice KQ started making loses from 2013 and the treasury has been bailing KQ out every year at an average of 20 Billion Kshs with direct instructions from the Government . All over a sudden when it has become apparent there will be a change of rule in 2022 , The government want to nationalize the airline you know why ? The is no guarantee that the bailout will continue post 2022 with a new regime , why not nationalize and the Government will be compelled by law to continue paying the lease charges .
Otherwise if you want to know the real owners , let KQ close the company , the banks Afroexim and standard Charter will go for their loan money from guarantors and that where you will see the real owners of the A/Cs .
In a statement to the newsroom, KQ Managing Director Titus Naikuni said the two firms, Samburu Limited and Amboseli Limited based in Cayman Islands, were incorporated by the airline’s lenders Standard Chartered Bank and the African Export Import Bank (Afriexim) as part of a financing agreement to purchase 10 new Embraer ERJ-190 from South America.
“In such financing agreements the companies are commonly referred to as special purpose vehicles (SPVs). The two companies will remain the transitory owners of the brand new aircrafts currently being purchased by Kenya Airways until the loans are fully paid to the lenders,” said Naikuni.
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I know US's Exim bank and others - loaned KQ to buy Boeing planes - about 70B kshs - for purchase of those flights.
This is not CMC - offshore thing - by NJonjo and company - I hope.
Otherwise US would come hard of anyone.
Wacheni Fitina.
If you want to hide - you cannot call them Samburu, Tsavo and etc. Previously they had Simba.
The offshore companies are owned by KQ lenders - StanChart and Afriexim.
https://www.capitalfm.co.ke/business/2012/11/kq-denies-racket-in-aircraft-purchase-deal/
Come on RV , you are better than this , Banks are in the business of giving out loans and not owning companies especially aviation related companies .
from the link you provided - Reread the statement carefully . Simba scheme too was the same scam and it seems the " unknown businessmen " learnt from it and decided to go from 4 Aircraft to more than 25 Aircrafts . Pray tell me why the 4 A/Cs 2 were sold at throw away price and 2 were converted to cargo aircraft after lease came to an end .
In the scheme one need to have enough money to act as a guarantor , get the big loans and buy the A/Cs -( Standard charter and AfroExim do not own any aircrafts they would even dare ) then lease the A/Cs in this case to KQ -If you notice KQ started making loses from 2013 and the treasury has been bailing KQ out every year at an average of 20 Billion Kshs with direct instructions from the Government . All over a sudden when it has become apparent there will be a change of rule in 2022 , The government want to nationalize the airline you know why ? The is no guarantee that the bailout will continue post 2022 with a new regime , why not nationalize and the Government will be compelled by law to continue paying the lease charges .
Otherwise if you want to know the real owners , let KQ close the company , the banks Afroexim and standard Charter will go for their loan money from guarantors and that where you will see the real owners of the A/Cs .
In a statement to the newsroom, KQ Managing Director Titus Naikuni said the two firms, Samburu Limited and Amboseli Limited based in Cayman Islands, were incorporated by the airline’s lenders Standard Chartered Bank and the African Export Import Bank (Afriexim) as part of a financing agreement to purchase 10 new Embraer ERJ-190 from South America.
“In such financing agreements the companies are commonly referred to as special purpose vehicles (SPVs). The two companies will remain the transitory owners of the brand new aircrafts currently being purchased by Kenya Airways until the loans are fully paid to the lenders,” said Naikuni.
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Kenya parliament even tried to probe the leasing deal of KQ and was stopped even before the motion started. The offshore companies are conduits for local owners. Otherwise there are several international companies that lease planes to airlines. KQ would not have needed to go far to some unknown offshore companies clearly only created for only one purpose, that is to loan planes to KQ.
I know US's Exim bank and others - loaned KQ to buy Boeing planes - about 70B kshs - for purchase of those flights.
This is not CMC - offshore thing - by NJonjo and company - I hope.
Otherwise US would come hard of anyone.
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But this was created by the Banks themselves. I don't see any fire or smoke here.
Kenya parliament even tried to probe the leasing deal of KQ and was stopped even before the motion started. The offshore companies are conduits for local owners. Otherwise there are several international companies that lease planes to airlines. KQ would not have needed to go far to some unknown offshore companies clearly only created for only one purpose, that is to loan planes to KQ.
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Banks do not create offshore companies to lease aircraft to local airlines. Then banks might as well create offshore companies for mortages.
As I wrote before, there are companies that specialiase in leasing of aircrafts. There was no reason for KQ to lease aircrafts from thos offshore companies. Also some of the aircrafts were later leased to other airlines at a lower rate than KQ was leasing. What sense does that make?
But this was created by the Banks themselves. I don't see any fire or smoke here.
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You don't get. Banks bought the planes on behalf of KQ. They are "leasing" it to KQ until they make the final loan repayment.
Banks do not create offshore companies to lease aircraft to local airlines. Then banks might as well create offshore companies for mortages.
As I wrote before, there are companies that specialiase in leasing of aircrafts. There was no reason for KQ to lease aircrafts from thos offshore companies. Also some of the aircrafts were later leased to other airlines at a lower rate than KQ was leasing. What sense does that make?
But this was created by the Banks themselves. I don't see any fire or smoke here.
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Employees are really suffering its no joke, the drunkard Uhuru needs to act fast and decisively,
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You don't get. Banks bought the planes on behalf of KQ. They are "leasing" it to KQ until they make the final loan repayment.
Banks do not create offshore companies to lease aircraft to local airlines. Then banks might as well create offshore companies for mortages.
As I wrote before, there are companies that specialiase in leasing of aircrafts. There was no reason for KQ to lease aircrafts from thos offshore companies. Also some of the aircrafts were later leased to other airlines at a lower rate than KQ was leasing. What sense does that make?
But this was created by the Banks themselves. I don't see any fire or smoke here.
Rv Pundit, Kadudu knows what she is talking about. For once she is right
Refer to below it will give you an insight of A/C financing.
https://www.lexology.com/library/detail.aspx?g=4e48c85e-27cb-4157-8a7e-24b2eeee7faf
An innovative solution for securing aircraft financing: Insurance-backed financing models
Turkey September 2 2019
As government-backed credits extended by US Ex-Im Bank and European export credit agencies (“ECA”) for aircraft financing have diminished, Marsh Group, a globally leading insurance broker acting as an aircraft broker in the aviation sector, has developed an insurance-backed aircraft financing product named Aircraft Finance Insurance Consortium1 (“AFIC”) with Boeing and subsequently another product named Balthazar with Airbus. BNP Paribas, a leading bank in aviation financing, offered financing in the amount of up to USD 225 million for five Airbus A321 NEO aircrafts to be delivered to Turkish Airlines in 2019 using the Balthazar model!2
The demand for air travel has been on the rise in Turkey since 2002.3 The increase is only expected to go up as the cost of air travel continues to decrease for the average customer, together with the opening of the new and higher-capacity İstanbul Airport set to become a global aviation hub. Despite the increasing demand for air travel, the total number of aircrafts in the Turkish airline companies’ fleets decreased rather sharply in 2017 due to the downsizing policies of some of these companies and remained nearly the same in 2018.
One reason for this disparity is presumably the difficulty of securing financing for aircrafts, partially due to diminishing support from ECAs4 for aircraft companies over the past few years. In the face of these difficulties, the insurance sector has filled the gap created by these governmentbacked credits provided by ECAs. A leading global insurance company, Marsh Group, has developed an insurance-backed aircraft financing product named Aircraft Finance Insurance Consortium (“AFIC”) specifically for US based Boeing aircrafts.
AFIC is reported to having financed approximately USD 3.5 billion of assets for eight airlines and two aircraft leasing companies since March 2017.5 Later on, Marsh Group issued a similar product with Airbus to ease aircraft financing named “Balthazar”, which was first used by Turkish Airlines recently. BNP Paribas, one of the leading banks in aviation financing, is said to provide financing in the amount of up to USD 225 million for five Airbus A321 NEO aircrafts to be delivered to Turkish Airlines in 2019 using the Balthazar model.
The Structure
The financing structure of insurance backed financing is similar to ECA-backed financing models in many ways. A simple outline of the typical structure can be summarized as follows:
Loan phase
• Incorporation of a Special Purpose Vehicle (“SPV”) by an airline company –this reduces the risk for the lenders as they would rather have an independent legal personality as the borrower, free from any financial distress that may be experienced by the airline company.
• Financing documents – similar to any ECA backed financing, the key finance documents will include a loan agreement between the SPV and lenders, an intercreditor agreement, and agreements covering the security package generally consisting of an aircraft mortgage, share pledge, assignment of receivables, and others based on the particularities of the deal.
Insurance phase
• Non-payment Insurance (“NPI”) – this is the key component of insurance backed aircraft financing. The SPV or parent company procures an NPI to be provided by a group of insurers in favor of the lenders. The group of insurers will then appoint an insurer representative to oversee coordination between the insurers and the lenders. The NPI mechanism will work as follows:
-If the SPV (as the borrower) fails to make the required payments to the lenders, the insurers will step-in and make the scheduled payments in lieu of the SPV;
-The content of the insurance policy can be negotiated between the parties to provide sufficient comfort to the lenders and insurers as well as the borrower and minimize the potential risks of the lenders (e.g. events of default);
-The insurance would cover 100% of the loan; and з The insurance premium may be paid in installments or in a lump sum by the SPV since it is also possible to finance the premium with the loan extended by the lenders.
Acquisition of aircrafts
• Extension of Loans and the Acquisition of Aircrafts – The lenders extend a loan to the SPV to finance the aircraft acquisition. Once the SPV acquires the aircraft, it leases the aircraft to the parent airline company.
• Repayment – The SPV uses the lease proceeds it receives from the parent airline company to pay the lenders.
• Event of Default - Upon occurrence of a continuing event of default, the insurance policy kicks in and the insurance companies will start to pay the lenders. It is worth noting that each insurer would be liable for a certain share of the loan. In line with the principles of the insurance law applicable to the insurance policy, insurers would become the successors of the lenders for the payment they have made. In other words, the insurers would replace the lenders for the portion of the payment they made, being able to use the rights that the lenders would have upon occurrence of an event of default (e.g. foreclosing the securities).
An Ideal Scheme for the Lenders
This structure is beneficial to the lenders as they shift all major risks to insurance companies. For instance, the lenders would be satisfied directly by a group of highly-rated insurance companies in cash instead of dealing with the – sometimes overly cumbersome - procedure of foreclosing the securities provided by the SPV. Another benefit of the structure for the lender comes from the incorporation of the SPV, creating a financially stable borrower remote from the risk of bankruptcy.
The structure also benefits the airline company and the aircraft manufacturer by making it easier for them to convince lenders to provide financing with the confidence brought by the insurance companies. The cost of financing is expected to be lowered by reducing the risk of non-payment significantly through 100% insurance coverage and confidence brought by the insurance companies.
The structure is similar to ECA-backed financing models. The main differences stem from the private sector insurance companies replacing the ECAs. Among others, this means that non-commercial constraints (such as domestic content thresholds) put by the ECAs will not be applicable.
The structure also benefits the airline company and the aircraft manufacturer by making it easier for them to convince lenders to provide financing with the confidence brought by the insurance companies. The cost of financing is expected to be lowered by reducing the risk of non-payment significantly through 100% insurance coverage and confidence brought by the insurance companies.
As for the insurance companies, the insurance-backed financing models provide another way for insurance companies to benefit from the available seats in the aviation sector by participating in aircraft financing transactions in addition to conventional aviation insurances. These models are appealing to insurance companies that would like to take part in and capitalize on aircraft financing transactions involving high-risk and requiring large amounts of financing.
Turkish Law Perspective
In principle, there are two fundamental aspects to the deal structure that must be evaluated from a Turkish law perspective: first, the conventional security package to be provided to the lenders, which is currently dealt with as established practice in Turkey. The second and most characterizing aspect of the deal is the insurance policy. One of the main roles of Turkish lawyers is to ensure that the insurance policy is enforceable in Turkey, as the insurance company may need to enforce the insurance policy to collect the insurance premia or to retrieve the payments it made in lieu of the SPV.
A Prospect for the Future
Even though the recent accidents that took place involving the Boeing 737 Max aircrafts and the technical errors associated with the said craft may have slowed down Boeing craft related financing, the addition of the insurancebacked financing models seem to be more than welcomed by the aviation sector around the world including Turkey.
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https://nairobilawmonthly.com/index.php/2015/06/10/kq-the-plight-of-africa/
In fact, one famous political family in the country, NLM established, could be holding significant interests in not only the firm but most of the KQ’s lenders.
The investigations uncovered that the genesis of the extreme turbulence KQ is experiencing could be traced back to Anglo Leasing-type deals when top management and senior government officials formed special purpose vehicles (SPVs) to fleece the carrier.
Majority of these SPVs were incorporated in tax havens like the Cayman Islands, and through a complex web of transactions were buying and selling, or leasing to KQ aircraft at mind-boggling fees.
As such, the SPVs have, in essence, have continued to strangle the national carrier in a complex web that KQ cannot and will not easily get out from, unless something more radical happens.
Media blackmail
Most of these SPVs were incorporated during the former CEO Titus Naikuni’s era, and Ngunze, who took over from Naikuni, was a high-ranking official at KQ.
Kenya’s local media attempt’s at disclosing these deals have been met with specific threats to journalists as well as the KQ executives withdrawing their adverts, at least until they play along.
In the early and mid-2000’s, KQ wanted to buy a new fleet of Embraer, the Brazilian-manufactured mid-range, aircraft, but could not make the down payment for the planes to the manufacturer. It thus borrowed money from some financiers to make the down payment.
In order to borrow the funds for the down payment, KQ transferred the purchase agreement for the fleet of planes to a new company that would become a borrower proxy for KQ.
According to the documents in possession of NLM, the borrower was Amboseli Limited, a special purpose company that was registered in the Cayman Islands. Amboseli Ltd was structured so that should it go into bankruptcy then KQ was to be at arm’s length – thus the phrase Bankruptcy Remote Orphan (BRO).
An orphan structure is a financing term referring to a company whose shares are held by a trustee on a non-charitable purpose trust. The company is said to be an “orphan” as it is not beneficially owned by anyone. Orphan structures are usually used in offshore structures to ensure that the assets and liabilities of the subject company (in this case Amboseli Ltd) are treated as “off-balance-sheet” with respect to the sponsor of the structure (in this case Kenya Airways).
Other reasons for creating an orphan structure are to avoid or minimise regulation which might otherwise apply to a structure, and to ensure that the company is “bankruptcy remote” from companies in the same group as the sponsor. Orphan structures are relatively common features of securitisation vehicles, where the asset backed bonds are issued by the orphan company (Amboseli Limited).
Shares in Amboseli Limited were to be held in trust for the benefit of whoever is putting up the money for the aircraft purchase. The trustee of all the shares in Amboseli Ltd was yet another special purpose vehicle called Walkers SPV (special purpose vehicle).
In the agreement, Amboseli Ltd was to use the purchase agreement signed by KQ with the manufacturer of the Embraer aircraft to approach unidentified lenders who would advance the funds necessary for payment and delivery of each plane until the fleet is bought entirely.
The terms of this agreement was that KQ would pay to Amboseli Ltd the sum of Manufacturers price plus Amboseli Limited’s “running costs” plus interest owed to the lenders engaged by Amboseli Ltd.
KQ was to repay Amboseli Ltd in instalments in the course of 12 years, according to March 2014 annual report, and each instalment is called a borrower’s contribution.
The borrower’s contribution is due from KQ whenever Amboseli Ltd is due to make an interest payment on the loan. In each instalment KQ pays the sum of: The interest due to be paid to the lender by Amboseli Ltd plus Amboseli Ltd’s running costs.
On the delivery date of the aircraft, KQ was to pay Amboseli Ltd the Balance of the purchase price. This means Amboseli Ltd would, on the same delivery date, pay the balance of the purchase price to the manufacturer, plus repay the lender for the particular aircraft.
In the structure, KQ would only take delivery, not title (the real proof of ownership), of each delivered aircraft. Amboseli Ltd was to deliver the title to another company called Samburu Limited “to whom the Delivery Facility is made by the long term lenders.”
From the chart in the documents in possession of NLM, the immediate questions were (1) where is Samburu Limited placed on the chart? (2) Who is the facilitating agent referred to on page 1 (paragraph c) of the document?
As at March 31, 2014, the KQ had 47 aircraft, either owned or on operating leases, according to KQ’s annual report. These comprised five Boeing 777 wide body jets, one Boeing 787, six Boeing 767 wide body jets, 13 Boeing 737 narrow body jets, 20 Embraer regional jets and two Boeing 737 freighters; formerly passenger aircraft, one converted to a freighter during the year, while the other had been converted the previous year.
Our attempts to get Ngunze, KQ’s CEO, who is officially the company spokesman, to respond to the specific questions were rebuffed, in a response couched to avoid at all any discussions on them.
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Part 2
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Part 3
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Part 4
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RV here is the evidence you were asking Njamba
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Kadudu kuja hapa. Remember this ?
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I have never been convinced.. those companies are owned by KQ, AfriExim Bank and US EximBank who financed the purchase of the jets.
Amboseli Ltd and Samburu Ltd, both registered in the Cayman islands. They will own the aircraft for the period of the finance lease.
Kenya Airways acquired two planes at a cost of Sh5.3 billion through the two offshore companies in September this year. The airline has just posted a half year loss of Sh4.8 billion.
The two companies are subsidiaries of Kenya Airways Ltd, but according to CMA, the directors are two lawyers based in Cayman Islands.
The two companies are intended to give the suppliers security by allowing them to own a share of the company that controls the aircraft, the CMA report states.
Kenya Airways told the CMA that the CMA that the arrangement was normal. They used a similar arrangement with the official US Eximbank in the 1990s to purchase four Boeing aircraft.
The report states that the companies are owned by a charitable trust controlled neither by Kenya Airways nor the financing company.
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Nobody has ever shown evidence that Kenyattas own KQ jets. KQ and the financiers of the plane ( I think AfriExim bank and Exim Bank US) - registered companies in tax haven.
What I know Kenyattas - own the ground handling facility company - one of those - and Muhoho/s owns the shops.
The same with Mois - owning auxillary services.
And so was Biwotts - with his Kenya Air that at some point had got British Airways deal.
Then the Ndegwas.
Those 4 families - Kenyatta, Mois, Biwotts and Ndegwas - run auxillary airport services.
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KQ if I recall doesnt lease any planes - they actually out-lease those planes to likes of Turkish Airline.
The planes they bought under the Mawingu - were financed by AfriExim and US EximBank - because these are expensive assets - and international - like Ships - they are registered in the Panamas/Cayman - it very complicated business.
That is actually the real business of Panamas and these Islands - that corrupt Kenyattas take advantage of to launder their money.
Panamas and such - are suppose to provide complicated arrangement for ships and such complicated assets - that fly or sail across jurisdictions.
https://www.afreximbank.com/kenya-airways-commends-afreximbanks-support-aircraft-acquisition/
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Dont do politics based on lies and propaganda. Let us avoid cheap shots on the kenyatta because if they respond and say they dont own it - with evidence - then you lose the fight. Credibility is everything.
Kenyattas do not own KQ jets.
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If you register those planes to kenya - they will be seized by AngoLeasing debt vultures like Tanzania one was seized by farmer in South Africa.
Most ships and planes are registered in Panama and such island for such reasons - those islands will never enter any treaty or anything - that makes them operate above international law almost. The Swiss started this - staying above fray - and become haven for everyone.
Most ships will therefore panama flag...even if owned by China or South Korea or US.
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RV , now you become an expert in aviation. Yes Kenyata family has interests in Kenya Aerotech, They had interests in NAS. Forget about those.
Reread the posts again.
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Which posts? If you're talking about tsavo,samburu and simba please get out of here. Kenyattas do not won any KQ jet. Kenyattas lent KQ money through CBA - and they've been trying to nationalize that debt.
That is their main interest in KQ - CBA bank made a mess.
Kenyatta interest in KQ is simple - CBA bank foolish gave KQ 4B shs to pay salaries - which will drink water unless KQ is rescued - and only way is to nationalize KQ.
All the attempts to give KQ - JKIA - and make it part of KAA - are attempt by many stupid Kenya banks to nationalize the KQ DEBT. Many banks gave KQ and its staff loans when it was BLUE CHIP :) :) - and then they were told to convert the loan into shareholding :) when suddenly the bluechip nosedived and crashed.
But KQ without those Cayman islands - their planes will be seized by Kenyatta CBA the same day : ) :) - Infact KQ are briliant for having that.
KQ survives because of Cayman island. You cannot seize anything. They own nothing in their name. All held in trust by lawyers in Cayman island.
RV , now you become an expert in aviation. Yes Kenyata family has interests in Kenya Aerotech, They had interests in NAS. Forget about those.
Reread the posts again.
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You have high IQ you said. Reread the posts. CBA like the other banks used to loan KQ to offset monthly wage bill and operational costs including fuel charges.
You simply dont understand the complex business of aircraft ownership. I tell you again reread the posts again and with an open mind.
Which posts? If you're talking about tsavo,samburu and simba please get out of here. Kenyattas do not won any KQ jet. Kenyattas lent KQ money through CBA - and they've been trying to nationalize that debt.
That is their main interest in KQ - CBA bank made a mess.
Kenyatta interest in KQ is simple - CBA bank foolish gave KQ 4B shs - which will drink water unless KQ is rescued - and only way is to nationalize KQ.
RV , now you become an expert in aviation. Yes Kenyata family has interests in Kenya Aerotech, They had interests in NAS. Forget about those.
Reread the posts again.
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I have always known I have high IQ from the time I was in class 2.
My high IQ tell me - CBA of Kenyatta foolish lent money to KQ.
KQ financiers brilliantly registered all their planes in fake companies.
KQ own nothing. Maybe the land in Embakasi - I think KCB bank went for that - and sold it :) Mugoya and MOi had grabbed most of it.
Of course they own the planes...but under shadowy cayman fronts.
It time for Kenyattas to simply write off 4B kshs - many Kenya banks - are going to see red.
I think combined they lent KQ billions - but KQ should be brought to it's death. Treasury will never recover its money.Kenya banks will never recover theirs. And KLM have already given up on it.
The Jets will be sold by AfriExim and Standard Chartered Intl in cayman islands.
And we end this sad story - like Mumias that fester for 30yrs.
You have high IQ you said. Reread the posts. CBA like the other banks used to loan KQ to offset monthly wage bill and operational costs including fuel charges.
You simply dont understand the complex business of aircraft ownership. I tell you again reread the posts again and with an open mind.
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So Uhurus bank lends KQ billions , then Kenyan Govt bails out KQ at
20 Billion annually since 2013 -2020 and convinces other banks to convert the debt into shares.
You really think Uhuru is that stupid ?
I have always known I have high IQ from class 2.
My high IQ tell me - CBA of Kenyatta foolish lent money to KQ.
KQ brilliantly registered all their planes in fake companies.
KQ own nothing. Maybe the land in Embakasi - I think KCB bank went for that - and sold it :) Mugoya and MOi had grabbed most of it.
Of course they own the planes...but under shadowy cayman fronts.
It time for Kenyattas to simply write off 4B kshs - many Kenya banks - are going to see red.
I think combined they lent KQ billions - but KQ should be brought to it's dead.
You have high IQ you said. Reread the posts. CBA like the other banks used to loan KQ to offset monthly wage bill and operational costs including fuel charges.
You simply dont understand the complex business of aircraft ownership. I tell you again reread the posts again and with an open mind.
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11 Kenyan banks foolishly lent 23B to KQ. That is 10yrs ago. Lots of money.
They lent KQ because well it's blue chip and the tall lanky Maasai is talking a storm.
This unsecured money - lent as mostly overdraft - or whatever - blue chip - that was paying before - no problem.
They actually bribe Naikuni with yellow yellow women :)
3 International Banks BRILLIANTLY lent KQ almost 70B.
The 3 international banks lent money for purchase of Boeing and Embarer jets
The 3 brilliant banks - insist that planes be jointly owned in Cayman island btw them and KQ - and the Treasury also put a 70B kshs gurantee.
These planes are then "leased" back to KQ.
Kenya treasury is .fuc.ked.
Kenya banks are fu.cked.
KQ basically OWN NOTHING.
Kenya banks have 23B hole. Treasury has potential 70B hole in public gurantee
So in their misery - they agree - to convert 23B to equity - and for Kenya treasury to annually pumb 20B into a hole.
KQ meanwhile continue to dig a big hole every year.
Flying half empty.
They own nothing.
KLM the strategic partner - quietly write it off - and have refused to inject any capital - pulled their staff - even kicked KQ out of their code sharing.
KLM equity keep reducing - until it now nearly zero.
KLM are brilliant. EximBank are brilliant.
Kenyattas are trying to get paid - by sustaining a beast that is busy digging a bigger hole.
Kenyattas will lose. Kenya public will lose more.
Kenyatts attempt to give KQ JKIA/KAA - nationalize the debt - parliament and Ruto say NOPE>
So Uhurus bank lends KQ billions , then Kenyan Govt bails out KQ at
20 Billion annually since 2013 -2020 and convinces other banks to convert the debt into shares.
You really think Uhuru is that stupid ?
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RV, Kenyan banks didnt lend KQ money 10 years ago. 10 years ago KQ was a profitable airline and had made so much money from SA worldcup that they had surplus.
The banks lent money when turbulence hit KQ from Circa 2015 actually under Mbuvi .The money was used to pay wage bill and operational expenses including Fuel costs.
As to the reason they lent the money one KQ as an airline was making revenue of around 100Billion , secondly the man at the helm had a brother heading CBA and with close ties to the President.
You are mixing airline business and aircraft aquisation business. These are distinct. KQ for your information leases half of its fleet from various lessors.
KQ has 2 different owners ERJ 190 the Y series and the F series
B737-300(KQA/B/C was only transferred the other day from Simba SPV to KQ , I believe KQD is yet to finish paying the loan.
B737-700 They were already returned to the lessors , B737-800 are under Geicas and 3777-300 with Turkish airlines and B787 6 are under (Samburu/Tsavo) two were sold to a lessor out there.
In the previous posts I have posted how Aircraft acquisayion are made . Banks can never enter into ownership of Aircrafts. SPVs do.
KLM and KQ are still partners furthermore they are still under SKY Team Alliance so kicking out of code share is not factual.
KQ brings to Kenya around 5% of the GDP hence apart from self interests reason it keeps being bailed out.
Nationalization bill was shelved because Uhuru decided BBI was the priority. He will bail out KQ this year and next year and most probably the bill will be brought back as soon as temperatures calm down.
Will you ask yourself a simple question , How come during Kibakis wra utill circa 2013 KQ used to be profitable but come 2013 every year its being bailed out to atune 20 Billion KShs avery year?
And FYI 70Billion KShs you say AfroExim bank lent KQ is cheap change in Aircraft aquisation. e.g one 787 costs around 250 Million USD.
11 Kenyan banks foolishly lent 23B to KQ. That is 10yrs ago. Lots of money.
They lent KQ because well it's blue chip and the tall lanky Maasai is talking a storm.
This unsecured money - lent as mostly overdraft - or whatever - blue chip - that was paying before - no problem.
They actually bribe Naikuni with yellow yellow women :)
3 International Banks BRILLIANTLY lent KQ almost 70B.
The 3 international banks lent money for purchase of Boeing and Embarer jets
The 3 brilliant banks - insist that planes be jointly owned in Cayman island btw them and KQ - and the Treasury also put a 70B kshs gurantee.
These planes are then "leased" back to KQ.
Kenya treasury is .fuc.ked.
Kenya banks are fu.cked.
KQ basically OWN NOTHING.
Kenya banks have 23B hole. Treasury has potential 70B hole in public gurantee
So in their misery - they agree - to convert 23B to equity - and for Kenya treasury to annually pumb 20B into a hole.
KQ meanwhile continue to dig a big hole every year.
Flying half empty.
They own nothing.
KLM the strategic partner - quietly write it off - and have refused to inject any capital - pulled their staff - even kicked KQ out of their code sharing.
KLM equity keep reducing - until it now nearly zero.
KLM are brilliant. EximBank are brilliant.
Kenyattas are trying to get paid - by sustaining a beast that is busy digging a bigger hole.
Kenyattas will lose. Kenya public will lose more.
Kenyatts attempt to give KQ JKIA/KAA - nationalize the debt - parliament and Ruto say NOPE>
So Uhurus bank lends KQ billions , then Kenyan Govt bails out KQ at
20 Billion annually since 2013 -2020 and convinces other banks to convert the debt into shares.
You really think Uhuru is that stupid ?
-
Umeamka sasa.
Now you're factual.
KQ biggest blunder was FUEL FUTURES;
One wrong bet - and I cannot blame Naikuni - every AGM - people were saying buy oil futures.
That time oil had risen to almost 140 dollars a barrel.
You know airline is jet fuel. Jet fule. Jet fuel. Everything is second.
Eventually KQ made one big blunder.
Then it was a no brainer - oil was expected to rise for forever - then 2014 happened - Oil crashed - KQ crashed.
RV, Kenyan banks didnt lend KQ money 10 years ago. 10 years ago KQ was a profitable airline and had made so much money from SA worldcup that they had surplus.
The banks lent money when turbulence hit KQ from Circa 2015 actually under Mbuvi .The money was used to pay wage bill and operational expenses including Fuel costs.
As to the reason they lent the money one KQ as an airline was making revenue of around 100Billion , secondly the man at the helm had a brother heading CBA and with close ties to the President.
You are mixing airline business and aircraft aquisation business. These are distinct. KQ for your information leases half of its fleet from various lessors.
KQ has 2 different owners ERJ 190 the Y series and the P series
B737-300(KQA/B/C was only transferred the other day from Simba SPV to KQ , I believe KQD is yet to finish paying the loan.
B737-700 They were already returned to the lessors , B737-800 are under Geicas and 3777-300 with Turkish airlines and B787 6 are under (Samburu/Tsavo) two were sold to a lessor out there.
In the previous posts I have posted how Aircraft acquisayion are made . Banks can never enter into ownership of Aircrafts. SPVs do.
KLM and KQ are still partners furthermore they are still under SKY Team Alliance so kicking out of code share is not factual.
KQ brings to Kenya around 5% of the GDP hence apart from self interests reason it keeps being bailed out.
Nationalization bill was shelved because Uhuru decided BBI was the priority. He will bail out KQ this year and next year and most probably the bill will be brought back as soon as temperatures calm down.
Will you ask yourself a simple question , How come during Kibakis wra utill circa 2013 KQ used to be profitable but come 2013 every year its being bailed out to atune 20 Billion KShs avery year?
11 Kenyan banks foolishly lent 23B to KQ. That is 10yrs ago. Lots of money.
They lent KQ because well it's blue chip and the tall lanky Maasai is talking a storm.
This unsecured money - lent as mostly overdraft - or whatever - blue chip - that was paying before - no problem.
They actually bribe Naikuni with yellow yellow women :)
3 International Banks BRILLIANTLY lent KQ almost 70B.
The 3 international banks lent money for purchase of Boeing and Embarer jets
The 3 brilliant banks - insist that planes be jointly owned in Cayman island btw them and KQ - and the Treasury also put a 70B kshs gurantee.
These planes are then "leased" back to KQ.
Kenya treasury is .fuc.ked.
Kenya banks are fu.cked.
KQ basically OWN NOTHING.
Kenya banks have 23B hole. Treasury has potential 70B hole in public gurantee
So in their misery - they agree - to convert 23B to equity - and for Kenya treasury to annually pumb 20B into a hole.
KQ meanwhile continue to dig a big hole every year.
Flying half empty.
They own nothing.
KLM the strategic partner - quietly write it off - and have refused to inject any capital - pulled their staff - even kicked KQ out of their code sharing.
KLM equity keep reducing - until it now nearly zero.
KLM are brilliant. EximBank are brilliant.
Kenyattas are trying to get paid - by sustaining a beast that is busy digging a bigger hole.
Kenyattas will lose. Kenya public will lose more.
Kenyatts attempt to give KQ JKIA/KAA - nationalize the debt - parliament and Ruto say NOPE>
So Uhurus bank lends KQ billions , then Kenyan Govt bails out KQ at
20 Billion annually since 2013 -2020 and convinces other banks to convert the debt into shares.
You really think Uhuru is that stupid ?
-
In as much as fuel hedging contributed to KQ losses in 2014 it was partially 28% . Since 2013 KQ became a loss making company and they would look for excuses , 2013 was fire at JKIA , 2014 Fuel hedging , 2015 Ebola and it would go on and on.
However the elephant in the room was the total fixed costs with highlight being Aircraft assets cost.
Umeamka sasa.
Now you're factual.
KQ biggest blunder was FUEL FUTURES;
One wrong bet - and I cannot blame Naikuni - every AGM - people were saying buy oil futures.
That time oil had risen to almost 140 dollars a barrel.
You know airline is jet fuel. Jet fule. Jet fuel. Everything is second.
Eventually KQ made one big blunder.
Then it was a no brainer - oil was expected to rise for forever - then 2014 happened - Oil crashed - KQ crashed.
RV, Kenyan banks didnt lend KQ money 10 years ago. 10 years ago KQ was a profitable airline and had made so much money from SA worldcup that they had surplus.
The banks lent money when turbulence hit KQ from Circa 2015 actually under Mbuvi .The money was used to pay wage bill and operational expenses including Fuel costs.
As to the reason they lent the money one KQ as an airline was making revenue of around 100Billion , secondly the man at the helm had a brother heading CBA and with close ties to the President.
You are mixing airline business and aircraft aquisation business. These are distinct. KQ for your information leases half of its fleet from various lessors.
KQ has 2 different owners ERJ 190 the Y series and the P series
B737-300(KQA/B/C was only transferred the other day from Simba SPV to KQ , I believe KQD is yet to finish paying the loan.
B737-700 They were already returned to the lessors , B737-800 are under Geicas and 3777-300 with Turkish airlines and B787 6 are under (Samburu/Tsavo) two were sold to a lessor out there.
In the previous posts I have posted how Aircraft acquisayion are made . Banks can never enter into ownership of Aircrafts. SPVs do.
KLM and KQ are still partners furthermore they are still under SKY Team Alliance so kicking out of code share is not factual.
KQ brings to Kenya around 5% of the GDP hence apart from self interests reason it keeps being bailed out.
Nationalization bill was shelved because Uhuru decided BBI was the priority. He will bail out KQ this year and next year and most probably the bill will be brought back as soon as temperatures calm down.
Will you ask yourself a simple question , How come during Kibakis wra utill circa 2013 KQ used to be profitable but come 2013 every year its being bailed out to atune 20 Billion KShs avery year?
11 Kenyan banks foolishly lent 23B to KQ. That is 10yrs ago. Lots of money.
They lent KQ because well it's blue chip and the tall lanky Maasai is talking a storm.
This unsecured money - lent as mostly overdraft - or whatever - blue chip - that was paying before - no problem.
They actually bribe Naikuni with yellow yellow women :)
3 International Banks BRILLIANTLY lent KQ almost 70B.
The 3 international banks lent money for purchase of Boeing and Embarer jets
The 3 brilliant banks - insist that planes be jointly owned in Cayman island btw them and KQ - and the Treasury also put a 70B kshs gurantee.
These planes are then "leased" back to KQ.
Kenya treasury is .fuc.ked.
Kenya banks are fu.cked.
KQ basically OWN NOTHING.
Kenya banks have 23B hole. Treasury has potential 70B hole in public gurantee
So in their misery - they agree - to convert 23B to equity - and for Kenya treasury to annually pumb 20B into a hole.
KQ meanwhile continue to dig a big hole every year.
Flying half empty.
They own nothing.
KLM the strategic partner - quietly write it off - and have refused to inject any capital - pulled their staff - even kicked KQ out of their code sharing.
KLM equity keep reducing - until it now nearly zero.
KLM are brilliant. EximBank are brilliant.
Kenyattas are trying to get paid - by sustaining a beast that is busy digging a bigger hole.
Kenyattas will lose. Kenya public will lose more.
Kenyatts attempt to give KQ JKIA/KAA - nationalize the debt - parliament and Ruto say NOPE>
So Uhurus bank lends KQ billions , then Kenyan Govt bails out KQ at
20 Billion annually since 2013 -2020 and convinces other banks to convert the debt into shares.
You really think Uhuru is that stupid ?
-
Learn to be factual.
This is not a cheap propaganda site.
Fuel hedging or future lasted how many years?
Kenyatta do not own any jets leased to KQ.
It's KQ and the airline financiers.
Kenyatta interest is to secure 4B lent to KQ from his family bank
Please learn to be factual.
This is not a propaganda site where we echo each other low IQ posts.
In as much as fuel hedging contributed to KQ losses in 2014 it was partially 28% . Since 2013 KQ became a loss making company and they would look for excuses , 2013 was fire at JKIA , 2014 Fuel hedging , 2015 Ebola and it would go on and on.
However the elephant in the room was the total fixed costs with highlight being Aircraft assets cost.
-
Boss In 2014 Fuel hedging accounted for 7.5 Billion loss out of 26 Billion. This is a fact.
The next fact is the anology KQ bought a "ferrari to do Taxi business"
But wewe what you see is Propaganda.
Lastly Ive been on this internet for more that 20 years now .You wont push me to say what you want to hear, or set me up. My message is loud and clear .
Learn to be factual.
This is not a cheap propaganda site.
Fuel hedging or future lasted how many years?
Kenyatta do not own any jets leased to KQ.
It's KQ and the airline financiers.
Kenyatta interest is to secure 4B lent to KQ from his family bank
Please learn to be factual.
This is not a propaganda site where we echo each other low IQ posts.
In as much as fuel hedging contributed to KQ losses in 2014 it was partially 28% . Since 2013 KQ became a loss making company and they would look for excuses , 2013 was fire at JKIA , 2014 Fuel hedging , 2015 Ebola and it would go on and on.
However the elephant in the room was the total fixed costs with highlight being Aircraft assets cost.
-
When did Fuel Hedging end. Please stop the drama. Like I have told you if I wanted fame or propaganda - I would easily say Kenyatta is doing ABC.
Or to help Ruto... I would be saying lots of nonsense daily. I WAS NOT BROUGHT UP THAT WAY. I was brought up with very high morals.
Or say Ruto is not corrupt or Kalenjin are not savages.
LEARN TO BE TRUTHFUL.
Boss In 2014 Fuel hedging accounted for 7.5 Billion loss out of 26 Billion. This is a fact.
The next fact is the anology KQ bought a "ferrari to do Taxi business"
But wewe what you see is Propaganda.
Lastly Ive been on this internet for more that 20 years now .You wont push me to say what you want to hear, or set me up. My message is loud and clear .
Learn to be factual.
This is not a cheap propaganda site.
Fuel hedging or future lasted how many years?
Kenyatta do not own any jets leased to KQ.
It's KQ and the airline financiers.
Kenyatta interest is to secure 4B lent to KQ from his family bank
Please learn to be factual.
This is not a propaganda site where we echo each other low IQ posts.
In as much as fuel hedging contributed to KQ losses in 2014 it was partially 28% . Since 2013 KQ became a loss making company and they would look for excuses , 2013 was fire at JKIA , 2014 Fuel hedging , 2015 Ebola and it would go on and on.
However the elephant in the room was the total fixed costs with highlight being Aircraft assets cost.
-
They stopped it in 2016 and would embark on it in 2018.
When did Fuel Hedging end. Please stop the drama.
Boss In 2014 Fuel hedging accounted for 7.5 Billion loss out of 26 Billion. This is a fact.
The next fact is the anology KQ bought a "ferrari to do Taxi business"
But wewe what you see is Propaganda.
Lastly Ive been on this internet for more that 20 years now .You wont push me to say what you want to hear, or set me up. My message is loud and clear .
Learn to be factual.
This is not a cheap propaganda site.
Fuel hedging or future lasted how many years?
Kenyatta do not own any jets leased to KQ.
It's KQ and the airline financiers.
Kenyatta interest is to secure 4B lent to KQ from his family bank
Please learn to be factual.
This is not a propaganda site where we echo each other low IQ posts.
In as much as fuel hedging contributed to KQ losses in 2014 it was partially 28% . Since 2013 KQ became a loss making company and they would look for excuses , 2013 was fire at JKIA , 2014 Fuel hedging , 2015 Ebola and it would go on and on.
However the elephant in the room was the total fixed costs with highlight being Aircraft assets cost.
-
That was genesis of KQ problems - obviously it now bigger problem. Kenyatta and Jets is propaganda. Good for Ruto. NOT FACTUAL.
They stopped it in 2016 and would embark on it in 2018.
-
If you really have a High IQ RV, you would bynow know there is much I can say but Im holding for very obvious reasons. Read between the lines.
That was genesis of KQ problems - obviously it now bigger problem. Kenyatta and Jets is propaganda. Good for Ruto. NOT FACTUAL.
They stopped it in 2016 and would embark on it in 2018.
-
RV is factual. Kenyattas do not own any aircrafts. The banks lost money, the govt forced banks to convert these loans to equity. unfortunately fore banks KQ has no assets that banks can sell to exit their position. KQ is dead and should be sold or disbanded. There are numerous investigative articles on KQ debt issue. I believe the aircraft leases were part their turnaround scheme that didn't work. I believe they have surrendered a few of the aircrafts because they can't keep up with the leases
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Yes that true position. Uhuru interest here is simple - to get his bank paid. KQ has zero assets to be seized and sold. Not to lease jets to dead airline.
Ultimately a decision has to be made - for debt to be dealt with somehow. Banks really had enough time to provision for bad debts.
So KQ should be shut down - unless they can survive without treasury,
RV is factual. Kenyattas do not own any aircrafts. The banks lost money, the govt forced banks to convert these loans to equity. unfortunately fore banks KQ has no assets that banks can sell to exit their position. KQ is dead and should be sold or disbanded. There are numerous investigative articles on KQ debt issue. I believe the aircraft leases were part their turnaround scheme that didn't work. I believe they have surrendered a few of the aircrafts because they can't keep up with the leases
-
Kenyan Government is the Guarantor of that debt. Wewe skariguru you dont even know what you talking about. Atleast RV is googling as we go ahead.
RV is factual. Kenyattas do not own any aircrafts. The banks lost money, the govt forced banks to convert these loans to equity. unfortunately fore banks KQ has no assets that banks can sell to exit their position. KQ is dead and should be sold or disbanded. There are numerous investigative articles on KQ debt issue. I believe the aircraft leases were part their turnaround scheme that didn't work. I believe they have surrendered a few of the aircrafts because they can't keep up with the leases
-
Precisely, either he is deliberately choosing to be ignorant or he does not know jack. How can a stokoguru be this wrong? How hard is it to understand kenyatta family with the help of Naikuni and others set up some offshore accounts named after kenya game parks, bought aircraft from boeing and leased them to KQ knowing very well if KQ was to default GOK was going to pick the tab. What a good business plan? Easy money no losses. High loss forced KQ to restructure which included leasing out some of those aircrafts to other airlines which is what KQ should have done in the first place.
Kenyan Government is the Guarantor of that debt. Wewe skariguru you dont even know what you talking about. Atleast RV is googling as we go ahead.
RV is factual. Kenyattas do not own any aircrafts. The banks lost money, the govt forced banks to convert these loans to equity. unfortunately fore banks KQ has no assets that banks can sell to exit their position. KQ is dead and should be sold or disbanded. There are numerous investigative articles on KQ debt issue. I believe the aircraft leases were part their turnaround scheme that didn't work. I believe they have surrendered a few of the aircrafts because they can't keep up with the leases
-
Googling as we go? Check this post and the dates. I simply refuse to allow your Low grade Low IQ propaganda to pass unchallenged. Kenyatta do not own any jet. They own KQ mess because they lent 4B kshs to it.
Kenyan Government is the Guarantor of that debt. Wewe skariguru you dont even know what you talking about. Atleast RV is googling as we go ahead.
-
Stockguru is another Pundit handle :D
Expect Pundit to enlist the help of more handles as the elections draw closer.
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Just because you operate many handles doesnt mean everyone does it. Seek mental help.
Stockguru is another Pundit handle :D
Expect Pundit to enlist the help of more handles as the elections draw closer.
-
If parliament had teeth like, Shikukus 1980s this couldnt go on. But most MPs are there for pay not national pride
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They are there for self interests. Nipe nikupe . Instead of shooting the bill down due to merrits or demerrits they were using the bill as pawn to get CDF funds for their own benefits.
Kimunya had to do an about turn lest the bill dies instantly as having to return it after a defeat would be next to impossible.
https://taalamu.com/state-shelves-bill-on-kq-nationalization/
The governments fear of having the National Aviation Management Bill 2020 shot down by MPs led to its withdrawal from the businesses lined up for consideration by the National Assembly during a special sitting on Thursday.
The Bill seeks to nationalise Kenya Airways (KQ), the countrys national carrier.
Leader of Majority Amos Kimunya (Kipipiri) requested House Speaker Justin Muturi to have the Bill shelved after MPs threatened to shoot it down in protest over delays by the Treasury to release their National Government Constituency Development Fund (NGCDF) money
If parliament had teeth like, Shikukus 1980s this couldnt go on. But most MPs are there for pay not national pride
-
Rv , No hard feelings but you know nothing about aviation. Better stick to growing trees and storming into Nairobi National Park.
Googling as we go? Check this post and the dates. I simply refuse to allow your Low grade Low IQ propaganda to pass unchallenged. Kenyatta do not own any jet. They own KQ mess because they lent 4B kshs to it.
Kenyan Government is the Guarantor of that debt. Wewe skariguru you dont even know what you talking about. Atleast RV is googling as we go ahead.
-
Facts are very stubborn. Just show us the jets owned by Kenyatta. Simple. Otherwise Kenyatta interest on KQ is NCBA exposure after lending money to it.
In a statement to the newsroom, KQ Managing Director Titus Naikuni said the two firms, Samburu Limited and Amboseli Limited based in Cayman Islands, were incorporated by the airline's lenders Standard Chartered Bank and the African Export Import Bank (Afriexim) as part of a financing agreement to purchase 10 new Embraer ERJ-190 from South America.
Rv , No hard feelings but you know nothing about aviation. Better stick to growing trees and storming into Nairobi National Park.
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Again someone said KLM still have code sharing with KQ - it ended. I remember reading that.
Now KLM are trying to fly to Mombasa
Here we go
https://airwaysmag.com/airlines/kenya-airways-af-klm-part-ends/
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RV, Joint venture and Code Sharing are different.
KQ will code share with all airlines in Sky Team including but not limited to KLM. The joint venture had been in existance since KLM acquired KQ shares im the 90s and it was skewed in advantage of KLM
a piece of advice . Do a research on aircraft acquisations and code sharing.
Again someone said KLM still have code sharing with KQ - it ended. I remember reading that.
Now KLM are trying to fly to Mombasa
Here we go
https://airwaysmag.com/airlines/kenya-airways-af-klm-part-ends/
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Right. That is clear. Now explain to us how Kenyatta own jets. Tell us which of 40 aircraft or 36 in KQ are owned by kenyattas.
RV, Joint venture and Code Sharing are different.
KQ will code share with all airlines in Sky Team including but not limited to KLM. The joint venture had been in existance since KLM acquired KQ shares im the 90s and it was skewed in advantage of KLM
a piece of advice . Do a research on aircraft acquisations and code sharing.
-
Noway
Show us how kenyattas would go lease aircrafts and lease them to KQ that is insolvent. Where would kenyattas get the money to pay these leases and why would a kenyatta finance manager think this is a worthy investment. Makes no sense to think that kenyattas would risk their capital is such a venture. You believe Boeing too would lease aircrafts to kenyattas when the risk of corruption which can land them in big trouble with the feds in USA. As Pundit is saying we need reave cheap propaganda to Facebook. Let us strive to provide facts. The burden of is on you to show that kenyattas own the jets and are leasing the to Kq
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The time this scheme was hatched, Naikuni was CEO and CFO was Alex Mbugua. KQ was at its peak and the expansion plans were made to counter Ethiopian Airlines on the African market. Uhuru being then finance minister used his connections to get KQ to lease the planes from his family offshore companies.
Nobody says Kenyattas own the planes. They could even themselves have leased the planes. The lease KQ got from Kenyattas was way above market price. There companies in the world that have specialised on the leasing of planes. No need of KQ going to an unknown entity and leasing planes from there.
The parliamentary committee that was to do this investigation just never kicked off. Why has Naikuni since then been put to shame after years of being the darling CEO of the Kenyan press? The man has a lot of skeletons in the closet and is untouchable as he knows too much.
Noway
Show us how kenyattas would go lease aircrafts and lease them to KQ that is insolvent. Where would kenyattas get the money to pay these leases and why would a kenyatta finance manager think this is a worthy investment. Makes no sense to think that kenyattas would risk their capital is such a venture. You believe Boeing too would lease aircrafts to kenyattas when the risk of corruption which can land them in big trouble with the feds in USA. As Pundit is saying we need reave cheap propaganda to Facebook. Let us strive to provide facts. The burden of is on you to show that kenyattas own the jets and are leasing the to Kq
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Not true. AfriExim financed the Embaers from Brazil. US Eximbank financed the Boeings.
These are asset-based financing with the aircraft serving as collateral
KQ is not leasing any planes. It was actually leasing out it's own planes to other airlines.
The time this scheme was hatched, Naikuni was CEO and CFO was Alex Mbugua. KQ was at its peak and the expansion plans were made to counter Ethiopian Airlines on the African market. Uhuru being then finance minister used his connections to get KQ to lease the planes from his family offshore companies.
Nobody says Kenyattas own the planes. They could even themselves have leased the planes. The lease KQ got from Kenyattas was way above market price. There companies in the world that have specialised on the leasing of planes. No need of KQ going to an unknown entity and leasing planes from there.
The parliamentary committee that was to do this investigation just never kicked off. Why has Naikuni since then been put to shame after years of being the darling CEO of the Kenyan press? The man has a lot of skeletons in the closet and is untouchable as he knows too much.
Noway
Show us how kenyattas would go lease aircrafts and lease them to KQ that is insolvent. Where would kenyattas get the money to pay these leases and why would a kenyatta finance manager think this is a worthy investment. Makes no sense to think that kenyattas would risk their capital is such a venture. You believe Boeing too would lease aircrafts to kenyattas when the risk of corruption which can land them in big trouble with the feds in USA. As Pundit is saying we need reave cheap propaganda to Facebook. Let us strive to provide facts. The burden of is on you to show that kenyattas own the jets and are leasing the to Kq
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Went even to an extent of showing how business is done in Aviation but still ujuaji makes people not learn.
You don't get. Banks bought the planes on behalf of KQ. They are "leasing" it to KQ until they make the final loan repayment.
Banks do not create offshore companies to lease aircraft to local airlines. Then banks might as well create offshore companies for mortages.
As I wrote before, there are companies that specialiase in leasing of aircrafts. There was no reason for KQ to lease aircrafts from thos offshore companies. Also some of the aircrafts were later leased to other airlines at a lower rate than KQ was leasing. What sense does that make?
But this was created by the Banks themselves. I don't see any fire or smoke here.
Rv Pundit, Kadudu knows what she is talking about. For once she is right
Refer to below it will give you an insight of A/C financing.
https://www.lexology.com/library/detail.aspx?g=4e48c85e-27cb-4157-8a7e-24b2eeee7faf
An innovative solution for securing aircraft financing: Insurance-backed financing models
Turkey September 2 2019
As government-backed credits extended by US Ex-Im Bank and European export credit agencies (“ECA”) for aircraft financing have diminished, Marsh Group, a globally leading insurance broker acting as an aircraft broker in the aviation sector, has developed an insurance-backed aircraft financing product named Aircraft Finance Insurance Consortium1 (“AFIC”) with Boeing and subsequently another product named Balthazar with Airbus. BNP Paribas, a leading bank in aviation financing, offered financing in the amount of up to USD 225 million for five Airbus A321 NEO aircrafts to be delivered to Turkish Airlines in 2019 using the Balthazar model!2
The demand for air travel has been on the rise in Turkey since 2002.3 The increase is only expected to go up as the cost of air travel continues to decrease for the average customer, together with the opening of the new and higher-capacity İstanbul Airport set to become a global aviation hub. Despite the increasing demand for air travel, the total number of aircrafts in the Turkish airline companies’ fleets decreased rather sharply in 2017 due to the downsizing policies of some of these companies and remained nearly the same in 2018.
One reason for this disparity is presumably the difficulty of securing financing for aircrafts, partially due to diminishing support from ECAs4 for aircraft companies over the past few years. In the face of these difficulties, the insurance sector has filled the gap created by these governmentbacked credits provided by ECAs. A leading global insurance company, Marsh Group, has developed an insurance-backed aircraft financing product named Aircraft Finance Insurance Consortium (“AFIC”) specifically for US based Boeing aircrafts.
AFIC is reported to having financed approximately USD 3.5 billion of assets for eight airlines and two aircraft leasing companies since March 2017.5 Later on, Marsh Group issued a similar product with Airbus to ease aircraft financing named “Balthazar”, which was first used by Turkish Airlines recently. BNP Paribas, one of the leading banks in aviation financing, is said to provide financing in the amount of up to USD 225 million for five Airbus A321 NEO aircrafts to be delivered to Turkish Airlines in 2019 using the Balthazar model.
The Structure
The financing structure of insurance backed financing is similar to ECA-backed financing models in many ways. A simple outline of the typical structure can be summarized as follows:
Loan phase
• Incorporation of a Special Purpose Vehicle (“SPV”) by an airline company –this reduces the risk for the lenders as they would rather have an independent legal personality as the borrower, free from any financial distress that may be experienced by the airline company.
• Financing documents – similar to any ECA backed financing, the key finance documents will include a loan agreement between the SPV and lenders, an intercreditor agreement, and agreements covering the security package generally consisting of an aircraft mortgage, share pledge, assignment of receivables, and others based on the particularities of the deal.
Insurance phase
• Non-payment Insurance (“NPI”) – this is the key component of insurance backed aircraft financing. The SPV or parent company procures an NPI to be provided by a group of insurers in favor of the lenders. The group of insurers will then appoint an insurer representative to oversee coordination between the insurers and the lenders. The NPI mechanism will work as follows:
-If the SPV (as the borrower) fails to make the required payments to the lenders, the insurers will step-in and make the scheduled payments in lieu of the SPV;
-The content of the insurance policy can be negotiated between the parties to provide sufficient comfort to the lenders and insurers as well as the borrower and minimize the potential risks of the lenders (e.g. events of default);
-The insurance would cover 100% of the loan; and з The insurance premium may be paid in installments or in a lump sum by the SPV since it is also possible to finance the premium with the loan extended by the lenders.
Acquisition of aircrafts
• Extension of Loans and the Acquisition of Aircrafts – The lenders extend a loan to the SPV to finance the aircraft acquisition. Once the SPV acquires the aircraft, it leases the aircraft to the parent airline company.
• Repayment – The SPV uses the lease proceeds it receives from the parent airline company to pay the lenders.
• Event of Default - Upon occurrence of a continuing event of default, the insurance policy kicks in and the insurance companies will start to pay the lenders. It is worth noting that each insurer would be liable for a certain share of the loan. In line with the principles of the insurance law applicable to the insurance policy, insurers would become the successors of the lenders for the payment they have made. In other words, the insurers would replace the lenders for the portion of the payment they made, being able to use the rights that the lenders would have upon occurrence of an event of default (e.g. foreclosing the securities).
An Ideal Scheme for the Lenders
This structure is beneficial to the lenders as they shift all major risks to insurance companies. For instance, the lenders would be satisfied directly by a group of highly-rated insurance companies in cash instead of dealing with the – sometimes overly cumbersome - procedure of foreclosing the securities provided by the SPV. Another benefit of the structure for the lender comes from the incorporation of the SPV, creating a financially stable borrower remote from the risk of bankruptcy.
The structure also benefits the airline company and the aircraft manufacturer by making it easier for them to convince lenders to provide financing with the confidence brought by the insurance companies. The cost of financing is expected to be lowered by reducing the risk of non-payment significantly through 100% insurance coverage and confidence brought by the insurance companies.
The structure is similar to ECA-backed financing models. The main differences stem from the private sector insurance companies replacing the ECAs. Among others, this means that non-commercial constraints (such as domestic content thresholds) put by the ECAs will not be applicable.
The structure also benefits the airline company and the aircraft manufacturer by making it easier for them to convince lenders to provide financing with the confidence brought by the insurance companies. The cost of financing is expected to be lowered by reducing the risk of non-payment significantly through 100% insurance coverage and confidence brought by the insurance companies.
As for the insurance companies, the insurance-backed financing models provide another way for insurance companies to benefit from the available seats in the aviation sector by participating in aircraft financing transactions in addition to conventional aviation insurances. These models are appealing to insurance companies that would like to take part in and capitalize on aircraft financing transactions involving high-risk and requiring large amounts of financing.
Turkish Law Perspective
In principle, there are two fundamental aspects to the deal structure that must be evaluated from a Turkish law perspective: first, the conventional security package to be provided to the lenders, which is currently dealt with as established practice in Turkey. The second and most characterizing aspect of the deal is the insurance policy. One of the main roles of Turkish lawyers is to ensure that the insurance policy is enforceable in Turkey, as the insurance company may need to enforce the insurance policy to collect the insurance premia or to retrieve the payments it made in lieu of the SPV.
A Prospect for the Future
Even though the recent accidents that took place involving the Boeing 737 Max aircrafts and the technical errors associated with the said craft may have slowed down Boeing craft related financing, the addition of the insurancebacked financing models seem to be more than welcomed by the aviation sector around the world including Turkey.
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You have no evidence. Kenyatta interest in KQ that is proven is NCBA exposure of 7B Kshs. The jets were bought by AfriExim (Embraers) and US Exim bank (Boeings -dreamliners) - registered in special vehicles in those Island until KQ finish payment of the loans. KQ has not been leasing IN aircrafts - but leasing them out. I recall they had leased them out to Turkish Airlines.
Stick to facts - otherwise we would look like fools.
Went even to an extent of showing how business is done in Aviation but still ujuaji makes people not learn.
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I have more than evidence but wont let it out bare because of on
obvious reasons. The people who can read between the lines already know whatsup.
Wewe google na usome magazeti.
You have no evidence. Kenyatta interest in KQ that is proven is NCBA exposure of 7B Kshs. The jets were bought by AfriExim (Embraers) and US Exim bank (Boeings -dreamliners) - registered in special vehicles in those Island until KQ finish payment of the loans. KQ has not been leasing IN aircrafts - but leasing them out. I recall they had leased them out to Turkish Airlines.
Stick to facts - otherwise we would look like fools.
Went even to an extent of showing how business is done in Aviation but still ujuaji makes people not learn.
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Lame.
I have more than evidence but wont let it out bare because of on
obvious reasons. The people who can read between the lines already know whatsup.
Wewe google na usome magazeti.
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You know nothing about aviation . Zero.
Lame.
I have more than evidence but wont let it out bare because of on
obvious reasons. The people who can read between the lines already know whatsup.
Wewe google na usome magazeti.
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We are not discussing aviation. We are discussing purchasing and leasing of planes through Afri-Exim Bank. Not through Kenyattas.
You know nothing about aviation . Zero.
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Purchasing and Leasing of Aircrafts is a very large section in Aviation.
KQ had to create a whole department during Project Mawingu headed by a Special Mzungu Director to handle this. Once all Aircrafts were delivered the mzungu returned to seattle.
We are not discussing aviation. We are discussing purchasing and leasing of planes through Afri-Exim Bank. Not through Kenyattas.
You know nothing about aviation . Zero.
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Who did the Kenyatta appoints? I once worked with a Kenyatta - who was Aviation head for the UN - coordinating South Sudan food air drops - I bet they could have tapped him?
Purchasing and Leasing of Aircrafts is a very large section in Aviation.
KQ had to create a whole department during Project Mawingu headed by a Special Mzungu Director to handle this. Once all Aircraftw were deliveres the mzungu returnes to seattle.
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That was Muhoho I bet. You see your thinking ?
why appoint a relative to do such kind of business dont you think it will bring alot of attwntion and limelight to the whole business ? The Kenyattas are sophiscated in how they handle their business.
Who did the Kenyatta appoints? I once worked with a Kenyatta - who was Aviation head for the UN - coordinating South Sudan food air drops - I bet they could have tapped him?
Purchasing and Leasing of Aircrafts is a very large section in Aviation.
KQ had to create a whole department during Project Mawingu headed by a Special Mzungu Director to handle this. Once all Aircraftw were deliveres the mzungu returnes to seattle.
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Yes he was Muhoho - nice humble chap - lived in Karen. Until you provide evidence - however tenuous - Kenyatta interest in KQ is substantial but restricted to 7B loan they dolled out to KQ and it's staff - that they were forced to convert into equity
That was Muhoho I bet. You see your thinking ?
why appoint a relative to do such kind of business dont you think it will bring alot of attwntion and limelight to the whole business ? The Kenyattas are sophiscated in how they handle their business.
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No airline can turn a profit for business in Afrika. Only a countable people can afford or have business flying. It is economics stupid.
We only do it for pride- now even shithole has a struggling national carrier taxes sinkhole while we cannot fund university education.
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This is one of the threads we have discussed in details about KQ Aircradt leases . If you cant read between the lines . Its upto you