146B Bailout for KQ

[Higgins the genius]

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https://www.businessdailyafrica.com/bd/economy/state-plans-sh146bn-kq-bailout-drops-takeover-3662198

The Kenyatta Enterprise wants to eat everything

[RV Pundit]

That is why SGR is money well spent..now look at 150b going down the drain with nothing to show. When will we say enough is enough.

[Nowayhaha]

You still believe there is no influence of a big family in this.

That is why SGR is money well spent..now look at 150b going down the drain with nothing to show. When will we say enough is enough.

[RV Pundit]

Beyond the entanglement of NCBA Bank whose exposure is 7B KSH..I am yet to see evidence

[Nowayhaha]

7B is cheap change in Aviation. Money in aviation is made by lessors and suppliers. KQ itself has been making an average of 100B in revenue for the last 10 years. Bulk of this money goes to Lease /Ownership charges and suppliers (fuel ,Parts) etc.
KQ was borrowing short term loans  from banks to pay employees hence the NCBA debt . Now if you think thats where the meat is in aviation .Then it means you know Ziltch about aviation.

Beyond the entanglement of NCBA Bank whose exposure is 7B KSH..I am yet to see evidence

[RV Pundit]

I know you have no evidence of a single jet owned by Kenyatta being leased by kQ.KQ was leasing out jets..not leasing in.. biggest expenditure in airlines in fuel and staff costs...KQ troubles began with fuel futures.7B is not small change..it a lot of money to be lost to an bankrupt airline that Kenyatta will never recover..hence Kenyatta interest

[Nowayhaha]

KQ problems started with the expansion Project Mawimgu.
Specifially acquiring  EmbraersE190 , 777-300 ,787 and the latter 737-800.
KQ was a profitable company till the expansion circa 2013 and there after.

I know you have no evidence of a single jet owned by Kenyatta being leased by kQ.KQ was leasing out jets..not leasing in.. biggest expenditure in airlines in fuel and staff costs...KQ troubles began with fuel futures.7B is not small change..it a lot of money to be lost to an bankrupt airline that Kenyatta will never recover..hence Kenyatta interest

[RV Pundit]

Why would Mawingo affect profitability? When it was entirely financed by US exim and Africa Exim bank? - entire amount of 80B kshs guranteed by Treasury. It not like it had any cashflow impact on KQ?

KQ profitability has direct correlation with fuel hedging - any wrong call - lead to massive losses - because fuel is their biggest cost.

KQ problems started with the expansion Project Mawimgu.
Specifially acquiring  EmbraersE190 , 777-300 ,787 and the latter 737-800.
KQ was a profitable company till the expansion circa 2013 and there after.