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Old October 29th, 2019, 12:55 PM   #3461
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Old October 29th, 2019, 05:48 PM   #3462
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Quote:
Originally Posted by Mwendo Safi View Post
I got shocked when i learnt that pilots who are 13% of total workforce in KQ, consumes a massive 60% of the total wage bill. The same pilots keep on issuing strike threats, fail to appear for duty leading to cancellation of the flights another cost on the KQ, constant demands to change the management despite having a new board and management. If these pilots are not saboteurs, then tell me what they are..
They are also blocking the employment of new captains who are in short supply in the country because it reduces their leverage on KQ management. They don't care that their less numbers and work schedule agreement means the airline has less captains than the scheduled trips. That leads to constant delays as you await them to complete their rest hours and get back to work. Its not unusual for KQ to be 6hrs late. An airline that previously was routinely voted most punctual in the continent, London and Netherlands.
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Old October 31st, 2019, 09:09 AM   #3463
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Wage discrepancy is not a new thing and will not go away. I think it’s even getting worse. Look at any corporate, and compare the least and most paid. My take on this is that we just need to get used to it.

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I got shocked when i learnt that pilots who are 13% of total workforce in KQ, consumes a massive 60% of the total wage bill. The same pilots keep on issuing strike threats, fail to appear for duty leading to cancellation of the flights another cost on the KQ, constant demands to change the management despite having a new board and management. If these pilots are not saboteurs, then tell me what they are..
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Old November 1st, 2019, 04:45 PM   #3464
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Good to see the route - broke even after 8 months -- must be a pretty profitable route because the business class being very popular - per Chairman Michael Joseph.
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Old November 1st, 2019, 04:56 PM   #3465
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Good to see the route - broke even after 8 months -- must be a pretty profitable route because the business class being very popular - per Chairman Michael Joseph.
I agree and this is a route KQ can build upon and offer a lot more services to more African travelers who fly outside the country to get to the states... The triple 7s would have been good on this route..
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Old November 4th, 2019, 09:50 AM   #3466
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I agree and this is a route KQ can build upon and offer a lot more services to more African travelers who fly outside the country to get to the states... The triple 7s would have been good on this route..
I used to frequently fly ET to Dulles IAD in Washington and progressively saw them shift from 777's to 787. Have not flown that route for a good 2 years now but can speculate 787's are the best fit for KQ. Filling a whole 777 5 times a week would still be a challenge
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Old November 4th, 2019, 05:04 PM   #3467
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Agreed. The fuel savings that the 787 provides vs. the 777 are considerable. Add to that an updated cabin, lower operating costs and better all round passenger amenities and it's no wonder that KQ (and other airlines) are increasingly relying on the 787 for long and ultra-long haul flights.
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Old November 4th, 2019, 06:10 PM   #3468
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Agreed. The fuel savings that the 787 provides vs. the 777 are considerable. Add to that an updated cabin, lower operating costs and better all round passenger amenities and it's no wonder that KQ (and other airlines) are increasingly relying on the 787 for long and ultra-long haul flights.
I actually didn't know this. Then why did KQ buy three of them for $1 billion loan. Seems it was the tipping point with the finances.
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Old November 4th, 2019, 06:16 PM   #3469
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Airlines use different jets for different missions.

If you operate a trunk route and there is more than enough demand, you operate A380's like Emirates and/or 777's. If you are on a long and skinny route, or simply operate long haul routes with little demand, then you really do not need the excess capacity. There exists a reason why KQ leased out it 777's and got the smallest long haul jet on offer from Boeing.
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Old November 8th, 2019, 01:30 PM   #3470
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Old November 8th, 2019, 01:35 PM   #3471
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Old November 11th, 2019, 10:12 PM   #3472
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Old November 12th, 2019, 09:00 PM   #3473
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Old November 15th, 2019, 05:51 PM   #3474
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I watched the interview conducted by Jeff Koinange with both Michael Joseph and Sebastian and from that interview it is clear to see that nationalization is off to the expected start; slow and bureaucratic! If parliament had already finalized the bill to nationalize the airline, why is it that six months in, the process has not yet taken off? Again reading one of the online papers, Business Daily, the PS for transportation was at parliament and promised that they are looking to engage a financial adviser from IFC to help them with valuation and proper buy out price. Her timeline is to have the entire process done by December next year!! This is after the chairman of the board of the airline, Michael Joseph has cast doubt on the viability of the airline in the next six months!
Do the people at the Transport ministry understand the urgency at play? I am of the opinion that the government just issues a $1 billion 15 year bond financed by a $10 airline ticket fee, plus $5 landing fee at all airports in the country. This amount should be divided into the $450 million that Michael Joseph says will help the turn around the airline without nationalizing it. The remainder of this, should go towards upgrading JKIA and Mombasa airports. The sheer ineptitude of this government and lack of ideas in raising needed funds continue to baffle me. KQ and the entire aviation industry needs this matter resolved asap!
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Old November 15th, 2019, 07:23 PM   #3475
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Quote:
Originally Posted by acreed79 View Post
I watched the interview conducted by Jeff Koinange with both Michael Joseph and Sebastian and from that interview it is clear to see that nationalization is off to the expected start; slow and bureaucratic! If parliament had already finalized the bill to nationalize the airline, why is it that six months in, the process has not yet taken off? Again reading one of the online papers, Business Daily, the PS for transportation was at parliament and promised that they are looking to engage a financial adviser from IFC to help them with valuation and proper buy out price. Her timeline is to have the entire process done by December next year!! This is after the chairman of the board of the airline, Michael Joseph has cast doubt on the viability of the airline in the next six months!
Do the people at the Transport ministry understand the urgency at play? I am of the opinion that the government just issues a $1 billion 15 year bond financed by a $10 airline ticket fee, plus $5 landing fee at all airports in the country. This amount should be divided into the $450 million that Michael Joseph says will help the turn around the airline without nationalizing it. The remainder of this, should go towards upgrading JKIA and Mombasa airports. The sheer ineptitude of this government and lack of ideas in raising needed funds continue to baffle me. KQ and the entire aviation industry needs this matter resolved asap!
Government focus now is how not to retire beyond 2022. Most things you would expect would be its top priority are not even on page 1-2-3. SAD.
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Old November 17th, 2019, 10:49 AM   #3476
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The guys are really frustrated.
The bad thing about all these is that airline turn-arounds are not things that take a few months, they need several years to plan and several years to execute.

If were's still talking about convincing the govt to get started, then we are really late.


Quote:
Originally Posted by acreed79 View Post
I watched the interview conducted by Jeff Koinange with both Michael Joseph and Sebastian and from that interview it is clear to see that nationalization is off to the expected start; slow and bureaucratic! If parliament had already finalized the bill to nationalize the airline, why is it that six months in, the process has not yet taken off? Again reading one of the online papers, Business Daily, the PS for transportation was at parliament and promised that they are looking to engage a financial adviser from IFC to help them with valuation and proper buy out price. Her timeline is to have the entire process done by December next year!! This is after the chairman of the board of the airline, Michael Joseph has cast doubt on the viability of the airline in the next six months!
Do the people at the Transport ministry understand the urgency at play? I am of the opinion that the government just issues a $1 billion 15 year bond financed by a $10 airline ticket fee, plus $5 landing fee at all airports in the country. This amount should be divided into the $450 million that Michael Joseph says will help the turn around the airline without nationalizing it. The remainder of this, should go towards upgrading JKIA and Mombasa airports. The sheer ineptitude of this government and lack of ideas in raising needed funds continue to baffle me. KQ and the entire aviation industry needs this matter resolved asap!
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Old November 17th, 2019, 11:52 AM   #3477
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Quote:
Originally Posted by acreed79 View Post
I watched the interview conducted by Jeff Koinange with both Michael Joseph and Sebastian and from that interview it is clear to see that nationalization is off to the expected start; slow and bureaucratic! If parliament had already finalized the bill to nationalize the airline, why is it that six months in, the process has not yet taken off? Again reading one of the online papers, Business Daily, the PS for transportation was at parliament and promised that they are looking to engage a financial adviser from IFC to help them with valuation and proper buy out price. Her timeline is to have the entire process done by December next year!! This is after the chairman of the board of the airline, Michael Joseph has cast doubt on the viability of the airline in the next six months!
Do the people at the Transport ministry understand the urgency at play? I am of the opinion that the government just issues a $1 billion 15 year bond financed by a $10 airline ticket fee, plus $5 landing fee at all airports in the country. This amount should be divided into the $450 million that Michael Joseph says will help the turn around the airline without nationalizing it. The remainder of this, should go towards upgrading JKIA and Mombasa airports. The sheer ineptitude of this government and lack of ideas in raising needed funds continue to baffle me. KQ and the entire aviation industry needs this matter resolved asap!
I can only sum it up in this Quote " Privatizing Profits and Nationalizing Losses...Both MJ and Sebastian are clueless and they have run out of ideas.."talking of making laws that would make it compulsory for every Kenyan to fly KQ..really..is that what they are paid millions to come up with?would they advocate for the same in SA or Poland where they come from??

Sebastian should be kicked out NOW...not wait for 6 months....what miracle can he achieve in 6 months? and for MJ saying that everyday he wakes up thinking about quitting.....Pshhh you'd think that he is doing us a favor while he is the only Non Executive Chairman who has a salary running into millions
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Old November 17th, 2019, 02:56 PM   #3478
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Plans to buyout Kenya Airways investors gather steam

Here is the article on the nationalization of KQ _ there seems to be a new Investment vehicle (a holding company) in the mix which could also be a sort of parastatal type company, ie to house all the subsidiary "GOK companies" - the AVIATION HOLDING COMPANY. . With the stock value of KQ having fallen 81% this is a steal for the government ... This seems pretty good - but success will be on the implementation. I am from the camp that wanted KQ to "own JKIA", but this may seem like a good concession route ... instead of the status quo.

"Under the model approved by Parliament, Kenya Airways will become one of four subsidiaries in an Aviation Holding Company.

The others will be Jomo Kenyatta International Airport, the country’s biggest airport; an aviation college and Kenya Airports Authority, which will operate all the nation’s other airports."


The biggest win for KQ will be:
Nationalisation will exempt Kenya Airways from taxes on engines, maintenance and fuel, allowing it to sell cheaper tickets, the report says.


Quote:
Plans to buyout Kenya Airways investors gather steam

Kenya’s National Treasury is planning to buyout Air France-KLM, local banks and more than 80,000 individual shareholders from Kenya Airways and delist the national carrier from the Nairobi Securities Exchange (NSE).

Transport Principal Secretary Esther Koimett told parliament that the buyout plan comes after the House voted in July to nationalise Kenya Airways and save it from mounting debts.

The Transport ministry is working with the International Finance Corporation to recruit a technical expert to conduct a fresh valuation.
The loss-making airline is 48.9 per cent government-owned, 38.1 per cent (lenders), 7.8 per cent (Air France-KLM), 2.4 per cent (Kenya Airways employees) and 2.8 per cent (individual investors).

“You have to ensure that everybody gets their dues, that is why you have to do valuation. It is a matter of getting shareholders to pass the necessary resolutions to facilitate the payouts within the law,” said Ms Koimett.

She added that the technical expert will be hired before Christmas festivities and that the government targets to close the buyout by end of next year, setting the ground for its delisting from the NSE where the national carrier was listed in 1996 through a privatisation plan.

Kenya Airways shares have plunged 81 per cent at the Nairobi bourse to Ksh2.72 (2 US cents), valuing the carrier at Ksh15.45 billion ($145.5 million).


The market valuation puts the lenders’ stake at Ksh6 billion ($60 million), Air France-KLM Ksh1.23 billion ($12.3 million), Kenya Airways employees Ksh380 million ($3.8 million) and small investors Ksh443 million ($4.43 million).

A consortium of local lenders, who acquired 38 per cent of the company’s equity during the 2017 restructuring, could be paid through government debt, possibly 10-year Treasury bonds, an official at the Transport ministry said. They converted the Ksh17 billion ($170 million) debt into equity.

Financial duress

Kenya Airways chairman Michael Joseph warned of financial duress for the national carrier if the buyout deal and the nationalisation plan are not completed in the next six months.

“We need a decision because in the next six months we run the danger of considering alternative measures that are not pleasant,” Mr Joseph told MPs without giving details.

Kenya wants to emulate countries like Ethiopia, which run air transport assets—from airports to fuelling operations—under a single company, using funds from the more profitable segments to support others.

Under the model approved by Parliament, Kenya Airways will become one of four subsidiaries in an Aviation Holding Company.

The others will be Jomo Kenyatta International Airport, the country’s biggest airport; an aviation college and Kenya Airports Authority, which will operate all the nation’s other airports.

Kenya Airways could renegotiate its aircraft leases based on its reduced risk profile, he said, noting that the airline needs more than its 40 planes.

JKIA alone has annual revenues of Ksh12 billion ($120 million), half of which is profit, a parliamentary report shows. Nationalisation will exempt Kenya Airways from taxes on engines, maintenance and fuel, allowing it to sell cheaper tickets, the report says.

The airline charges more than its competitors, forcing price-sensitive passengers through hubs like Addis Ababa and Kigali.
SOURCE EAFRICAN
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Last edited by felakuti1; November 17th, 2019 at 03:06 PM.
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Old November 17th, 2019, 03:22 PM   #3479
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Quote:
Originally Posted by felakuti1 View Post
Here is the article on the nationalization of KQ


The biggest win for KQ will be:
Nationalisation will exempt Kenya Airways from taxes on engines, maintenance and fuel, allowing it to sell cheaper tickets, the report says.

What do the leaders of KQ say about this plan?

An accompanying annotation from me about my question above: The KQ ceo said the other day that if Kenyans were mandated to only take KQ, KQ would be profitable in weeks. This is a fool’s wish because if you added all the passengers the other airlines carry and the jobs they all create it would be much greater than KQ alone can do, at least currently. But that might be more sensible if KQ would grow to dominate the market at some point.
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Old November 17th, 2019, 10:41 PM   #3480
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The actions of the government to try and compel importers/transporters to use SGR has given the two the idea that such actions can be implemented at KQ.

Quote:
Originally Posted by DissidentX View Post
I can only sum it up in this Quote " Privatizing Profits and Nationalizing Losses...Both MJ and Sebastian are clueless and they have run out of ideas.."talking of making laws that would make it compulsory for every Kenyan to fly KQ..really..is that what they are paid millions to come up with?would they advocate for the same in SA or Poland where they come from??

Sebastian should be kicked out NOW...not wait for 6 months....what miracle can he achieve in 6 months? and for MJ saying that everyday he wakes up thinking about quitting.....Pshhh you'd think that he is doing us a favor while he is the only Non Executive Chairman who has a salary running into millions
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