Ruto On Kenya Airways - conflict of interests that we all know

[Nowayhaha]

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Why RV  pretends he cant understand is just sickening.

https://standardmedia.co.ke/business/business/article/2001449258/william-ruto-pledges-two-year-turnaround-strategy-for-kq

[Nowayhaha]

Pundit , Get this in your head.

.

[RV Pundit]

Bora they don't do bailout

[Nowayhaha]

The other option is closing it and starting new company.
Ruto is right bail it out for 2 more years and get it out from the current lessors and suppliers.
With new regime means the lessors and suppliera  will come back to the negotiating table.
When you minimize asset costs and operational costs you can have competitive fares and you are back in the market. No rocket science .

Bora they don't do bailout

[RV Pundit]

Like I said recently it appears kQ is out of dangrer..thr.debt for jets is down to 80m dollars from 750m..so company can be saved.We cannot do bailout.It has to be reforms that doesn't include more money

[Nowayhaha]

RV , Aviation is just recovering from Covid and most of the vompanies are yet to get to the Pre Covid levels.As for KQ even prior to Covid the company was struggling.
The person who wrote Rutos Manifesto has an idea of what is happening in Aviation hence the reason he gave Ruto 2 years to revamp KQ.Within those 2 years KQ has be supported by bailouts furrhermore he was very right to say KQ is very important to let it go.
Elaborate on your ideas how to reform KQ without Bailouts ?

Like I said recently it appears kQ is out of dangrer..thr.debt for jets is down to 80m dollars from 750m..so company can be saved.We cannot do bailout.It has to be reforms that doesn't include more money

[RV Pundit]

Cut costs. Make it leaner. Reduce staff salaries.Cut expensive routes. Focus on Intra-Africa. Become a budget airline.Give them land to build a cheap transfer hotel at JKIA in some PPP. Make sure all gov and county staff travel through KQ - it doesnt make sense to have a gov owned airlines..and have kenya civil servant travel without using KQ. I am sure gov budget on travel alone is something like 20B.

If I had my way I would make KQ a JamboJet - budget regional airline - only retain cargo flight to Europe. It cannot compete now with big global airlines...but it can become termination flight of choice for big boys...so focus on flying to says all DRC big towns...fly to Nigeria cities..fly to all subsahara countries...and try to intensity them...3 or 4 destinations in some countries....many africa gov do not mind you flying to their countries.

Even with Kenya alone - JamboJet has so much scope to grow - Kenya gov just need to build more domestic airports in places like Marsabit, Busia, Bungoma, Wajir, Mandera, Lodwar......all those border towns can become transit to other countries

RV , Aviation is just recovering from Covid and most of the vompanies are yet to get to the Pre Covid levels.As for KQ even prior to Covid the company was struggling.
The person who wrote Rutos Manifesto has an idea of what is happening in Aviation hence the reason he gave Ruto 2 years to revamp KQ.Within those 2 years KQ has be supported by bailouts furrhermore he was very right to say KQ is very important to let it go.
Elaborate on your ideas how to reform KQ without Bailouts ?

[Kadudu]

Pundit has been on denial for years on this issue.

Ruto should have toboad and not just leave for the Kenyan public to guess like it is vitendawili.

Banks do not do business of leasing aircrafts to airlines. Banks could lend you money to do the leasing but they themselves always keep out of doing business directly. That is why banks do not build houses but give out mortages for people to build or own houses.

Pundit , Get this in your head.

[Nefertiti]

KQ is economically unviable like most other national airlines are subsidized. Emirates, Qatar, BA SAA, RwandAir, ET. All subsidized by their states. Just kick out Kenyatta and other corrupt tenderpreneurs owning duty-free.. but bottomline GoK must decide whether aviation is significant national interest to be subsidized or allowed to die.

Just like KPLC, KR, etc.

[RV Pundit]

If you build a rental unit with loan; the bank will insist the rent be paid to them; so they deduct their loan first.

Pundit has been on denial for years on this issue.

Ruto should have toboad and not just leave for the Kenyan public to guess like it is vitendawili.

Banks do not do business of leasing aircrafts to airlines. Banks could lend you money to do the leasing but they themselves always keep out of doing business directly. That is why banks do not build houses but give out mortages for people to build or own houses.

Pundit , Get this in your head.

[RV Pundit]

It tough business with oil prices fluctuating but gov has to do it anyway because it's biggest customer of airline. The gok has 700,000 staff - and I bet the expenditure on airline tickets is massive.

KQ is economically unviable like most other national airlines are subsidized. Emirates, Qatar, BA SAA, RwandAir, ET. All subsidized by their states. Just kick out Kenyatta and other corrupt tenderpreneurs owning duty-free.. but bottomline GoK must decide whether aviation is significant national interest to be subsidized or allowed to die.

Just like KPLC, KR, etc.

[Kadudu]

You also admit the bank will not build to rent out.

If you build a rental unit with loan; the bank will insist the rent be paid to them; so they deduct their loan first.

[RV Pundit]

Why do you like arguing nonsense.
SPV are used to acquire planes all over the world.
GOOGLE search
The use of special purpose vehicle structures is very common in aviation finance. They provide various advantages for lenders such as tax benefits and providing a bankruptcy remote vehicle for the financing.

An SPV is a company established to acquire, finance, and lease specific aircraft and is typically incorporated in a tax-neutral/friendly ..

You also admit the bank will not build to rent out.

[sema]

KQ is economically unviable like most other national airlines are subsidized. Emirates, Qatar, BA SAA, RwandAir,

Airlines are generally a money losing business and the truth is, for poor African countries, sustaining a national carrier just isn't financially viable.  I believe 50% of Rwandair is owned by the Qatari government (no way a poor country like Rwanda can afford a national carrier on it's on) -- so, outside of South Africa, what other sub-saharan African country has been financially able to sustain a national carrier?

[RV Pundit]

Ethiopia Airline is the boss. South Africa is dead.

KQ is economically unviable like most other national airlines are subsidized. Emirates, Qatar, BA SAA, RwandAir,

Airlines are generally a money losing business and the truth is, for poor African countries, sustaining a national carrier just isn't financially viable.  I believe 50% of Rwandair is owned by the Qatari government (no way a poor country like Rwanda can afford a national carrier on it's on) -- so, outside of South Africa, what other sub-saharan African country has been financially able to sustain a national carrier?

[Nowayhaha]

RV you realise what you are suggesting KQ has been trying to implement since 2012 When it started facing problems and without success.
The only way to salvage KQ is going back to where hell started and identifying the reason.
If you note KQ started performing badly when the acquired the Embraers and Dreamliners - First it was the cost of leasing the Aircrafts which they pay double the market rates and secondly the African business model is trading not viable with Embraer . Embraer is a jet built for European , American business market . It does not have Cargo capacity and majority of buggage and luggages was being left behind in JKIA during transit to the destination hence a substantial number of Passenger ran away to competitors like Ethopian Airlines and Emirates , especially the Western Africans.
Ofcourse going back to where they were is tricky having committed to longterm lease contracts but they have to see how they can mitigate this. They did well by leasing out some of the Embraers to DR Congo . If they can do that and bring in cheaper 737 the better as reintroducing another fleet type would require a massive investment and time consuming exercise of retraining personnel or recruiting new personnel . As for dreamliners they need to go back and renegotiate with the lessors offer them a deal of either sell lease back for the bought aircrafts and or an early re-delivery for the leased Aircrafts . Then from there do like U.S. operators go for the cheaper variants in the market . Lots of Aircraft in Europe and Asia parked post Pandemic.

Cut costs. Make it leaner. Reduce staff salaries.Cut expensive routes. Focus on Intra-Africa. Become a budget airline.Give them land to build a cheap transfer hotel at JKIA in some PPP. Make sure all gov and county staff travel through KQ - it doesnt make sense to have a gov owned airlines..and have kenya civil servant travel without using KQ. I am sure gov budget on travel alone is something like 20B.

If I had my way I would make KQ a JamboJet - budget regional airline - only retain cargo flight to Europe. It cannot compete now with big global airlines...but it can become termination flight of choice for big boys...so focus on flying to says all DRC big towns...fly to Nigeria cities..fly to all subsahara countries...and try to intensity them...3 or 4 destinations in some countries....many africa gov do not mind you flying to their countries.

Even with Kenya alone - JamboJet has so much scope to grow - Kenya gov just need to build more domestic airports in places like Marsabit, Busia, Bungoma, Wajir, Mandera, Lodwar......all those border towns can become transit to other countries

RV , Aviation is just recovering from Covid and most of the vompanies are yet to get to the Pre Covid levels.As for KQ even prior to Covid the company was struggling.
The person who wrote Rutos Manifesto has an idea of what is happening in Aviation hence the reason he gave Ruto 2 years to revamp KQ.Within those 2 years KQ has be supported by bailouts furrhermore he was very right to say KQ is very important to let it go.
Elaborate on your ideas how to reform KQ without Bailouts ?

[RV Pundit]

Okay I see; it a little complicated; But how do you go back to old world when Qatars, Emirates and those kind of airlines are cannablizing everyone. Jambojet as subsidiary makes money. The "leasing" is about to end. KQ balance sheet will get big bost. The banks should be forced to sell to a strategic investor...I would go for Qatar or Emirate or Etihad..arrange for kenya banks to offload their shares..then Qataris can help KQ with local or regional traffic.

RV you realise what you are suggesting KQ has been trying to implement since 2012 When it started facing problems and without success.
The only way to salvage KQ is going back to where hell started and identifying the reason.
If you note KQ started performing badly when the acquired the Embraers and Dreamliners - First it was the cost of leasing the Aircrafts which they pay double the market rates and secondly the African business model is trading not viable with Embraer . Embraer is a jet built for European , American business market . It does not have Cargo capacity and majority of buggage and luggages was being left behind in JKIA during transit to the destination hence a substantial number of Passenger ran away to competitors like Ethopian Airlines and Emirates , especially the Western Africans.
Ofcourse going back to where they were is tricky having committed to longterm lease contracts but they have to see how they can mitigate this. They did well by leasing out some of the Embraers to DR Congo . If they can do that and bring in cheaper 737 the better as reintroducing another fleet type would require a massive investment and time consuming exercise of retraining personnel or recruiting new personnel . As for dreamliners they need to go back and renegotiate with the lessors offer them a deal of either sell lease back for the bought aircrafts and or an early re-delivery for the leased Aircrafts . Then from there do like U.S. operators go for the cheaper variants in the market . Lots of Aircraft in Europe and Asia parked post Pandemic.

Cut costs. Make it leaner. Reduce staff salaries.Cut expensive routes. Focus on Intra-Africa. Become a budget airline.Give them land to build a cheap transfer hotel at JKIA in some PPP. Make sure all gov and county staff travel through KQ - it doesnt make sense to have a gov owned airlines..and have kenya civil servant travel without using KQ. I am sure gov budget on travel alone is something like 20B.

If I had my way I would make KQ a JamboJet - budget regional airline - only retain cargo flight to Europe. It cannot compete now with big global airlines...but it can become termination flight of choice for big boys...so focus on flying to says all DRC big towns...fly to Nigeria cities..fly to all subsahara countries...and try to intensity them...3 or 4 destinations in some countries....many africa gov do not mind you flying to their countries.

Even with Kenya alone - JamboJet has so much scope to grow - Kenya gov just need to build more domestic airports in places like Marsabit, Busia, Bungoma, Wajir, Mandera, Lodwar......all those border towns can become transit to other countries

RV , Aviation is just recovering from Covid and most of the vompanies are yet to get to the Pre Covid levels.As for KQ even prior to Covid the company was struggling.
The person who wrote Rutos Manifesto has an idea of what is happening in Aviation hence the reason he gave Ruto 2 years to revamp KQ.Within those 2 years KQ has be supported by bailouts furrhermore he was very right to say KQ is very important to let it go.
Elaborate on your ideas how to reform KQ without Bailouts ?

[Nowayhaha]

You are right KQ should be treated as a strategic asset. Even with losses it has been bringing foreign exchange of about 100-150 Billion Kshs per year now also put the big factor it plays in tourism and the Kenyan brand supports across all the countries it flies and advertises .

KQ is economically unviable like most other national airlines are subsidized. Emirates, Qatar, BA SAA, RwandAir, ET. All subsidized by their states. Just kick out Kenyatta and other corrupt tenderpreneurs owning duty-free.. but bottomline GoK must decide whether aviation is significant national interest to be subsidized or allowed to die.

Just like KPLC, KR, etc.