At outset gok and banks didnt want to own it;
They were forced to own it;
Their loans to KQ convert to shares as KQ is just broke.
Therefore Banks and Kenya Gov need to exit pronto.
Banks have no business in airline business - they found themselves in this situation because KQ couldnt repay the loan.
The first people to exit will be Kenya Banks - Central Bank will simply write SMS telling them sell now
And get your money - clean your balance sheet - and start lending money.
That Delta Airlines can buy at right prize.
Then gov should sell Delta another 20% - to make Delta stake 58% - that will also mean they will take over management
And will sort out mismanagement, leasing and corruption.
KQ was doing great post 1995 - because KLM were running finance and aviation dept.
Once under Kibaki - KLM were slowly kicked out - and kenyans put into finance - there was certain Mbugua fat dude and Naikuni who ate it.
Now we need to return a strategic partner like KLM - and I hope that is Delta.
I think you people need to be speific on what ails KQ
Out of the 70BN annual revenues last year.I think:
3BN went to fuel.
16BN if am not wrong went to aircraft leasing.
The question is how much money went to labour?food supplies? aircraft maintenance? professional fees?
We're these services and goods at market value?
I think the challenge is that GOK owns 48% and local banks 38%..what that means is that the GOK and bank representatives broker goods and services at inflated or unfavorable costs...they take their cut and then GOK bails it out year in year out.its a cartel.
I think the solution is for Ruto to sell GOK stake of 48% and get his 10%management fee.. otherwise I think some thugs makes 5-10BN annually at the expense of tax payer.
