The only thing remaining is the Official funeral …
This loss making State Carrier is beyond salvage …
Last December, William Ruto led a Kenyan delegation to Washington with a pitch to sell a controlling stake in the KQ , as part of a move to steer the beleaguered airline back to profitability.
The push by the government to pursue a strategic investor in KQ comes against the backdrop of a pause on bailouts to the carrier by the Exchequer in the fiscal year starting July 1.
At the end of May, KQ owed Sh187.74 billion ($1.347 billion) to creditors, including the Sh61.4 billion ($439.8 million) Tsavo facility related to the carrier’s acquisition of six Boeing 787-8 aircraft, one Boeing 777-300 ER aircraft and one Genx engine in 2012.
KQ missed payments on the facility, resulting in the government taking over the guaranteed debt after which the Exchequer cleared Sh10.1 billion as at the end of March 2023.
The Exchequer has further guaranteed Sh31.4 billion ($225 million) in KQ borrowing from nine local banks for the financing of working capital and which was secured in November 2017 at the end of the company’s last restructuring.
Aside from the guaranteed facilities, KQ owes Sh22.9 billion to critical suppliers, including aircraft fuelers, handling companies and airport authorities, and whose default would result in the crippling of the airline’s operations.
KQ also owes Sh13.7 billion ($98 million) to syndicates, including the Afrexim Bank and Standard Chartered Bank, for the purchase of 10 Embraer e-jets, a facility dubbed as Samburu and whose default would lead to the grounding of the carrier’s fleet.
Kama tu Telkom Kenya.Pale Telkom Plaza,Telkom Kenya used to occupy all the 12 floors,sai they occupy only 2 floors.The landlord has rented out the other 10 floors to new tenants.He is still owed 175M in rent arrears.The company has defaulted on 19billion stanchart bank facility.They were unable to get refinancing resulting to inability to pay American Towers Company that leases out transmission sites to Telkom Kenya.As a result,American Towers has disconnected Telkom Kenya from 500 sites across the country.Thats why data and voice services have either disappeared or degraded in several parts of the country.They have been given 60days to clear the debt with ATIC failure of which the rest of the sites will be disconnected.That will be the final nail in Telkom Kenya’s coffin.
Didnt know that this one actually exists.From their website it doesnt seem to be a daily flight.The nearest date that one can do the trip is 21st June.Its like they advertise the route in advance for the seats to be filled which makes alot of sense.KQ makes a lot of money,most of the seats for the rest of the routes being expensive and always full.Problem is that its a conduit ya kukula.
Problems begin when Politics , Politicians , their mistresses , children and cronies interfere with the running of private enterprises …
From discussions with friend and insiders , the remedies are available BUT vested interests keep blocking progress to facillitate all sorts on ongoing criminality …
It is all about going back to BASICS …
The business model should be to efficiently serve profitable routes with adequate capacity and frequency while utilizing cost effective equipment , methods and skilled personel …
As the model continures evolves in profitability …
Introduce integrated Cargo , Shipping , Warehousing and Logistics solutions.
Charter , Vacation , Hotel and Hospitality Facilities and Services .
Viable Partnerships with the Public , Counties and Financial Institutions to develip domestic travel infrastructure in small sustainable increments .
Copy / Paste proven solutions found world wide …
Eg: Spain / Switzerland / Mauritius / Seychelles / Botswana / Mozambique.
Investments should only be made where viable and profitable.
a Regulator or authority legistlative teeth and oversight must be established to maintain standards and ensure transparency and level plying fields.
But … All the forgoing requires Political will and commitment …
A very rare commodity in the current KENYA KWISHA setup top heavy with Sugoi Hustler Bottom-Up Conmen , First Daughters , Bimbos , Mistresses and Opportunists …
Agreed …
The big problem appears to be in the right Leadership , Fiscal Discipline and Business Focus …
Even the famous , small Wilson Airport based “Miraa” Flights are doing just fine …
In just a few short years both Air Rwanda and Air Tanzania running efficient Services …
WHY CAN WE NOT ACHIEVE THE SAME RESULT … ???
WHY …???
SWISSAIR was one of the top 3 World Airlines that was the envy of many …
Top Quality , Well Administered , Diversified and Highly Profitable …
Then along came a Donald Trump like CEO called Phillipe Bruggisser …
His first agenda was to infiltrate and surround himself with 19 top executives and YES men on the Board.
The then went on a uncontrolled buying spree of struggling European Airlines , Hotels and vastly expanding the SWISSAIR Fleet …
Anyone who opposed him had to leave …
This led to major financial problems, particularly with the company’s stakes in the loss making Belgian national carrier SABENA and smaller European Aviation companies.
Massive increases in fuel prices and a strong dollar did little to help the carrier’s bottom line.
Sensing disaster and the imminent collapse of SWISSAIR , Bruggisser, who began working for Swissair in 1979, received compensation worth SFr: 2.2 million after being asked to leave, plus another SFr:3.75 million from the company pension fund.
The Airlines banker since 1919 [ the Union Bank of Swistzerland - UBS] refused to bail out SWISSAIR and it went into recievership …
It downsized after massive layoffs , Asset sales and spinning off ALL its aquisitions .
The management of its regional subsidiary , SWISS , took over management.
Today , it is part of the larger LUFTHANSA Group.
Bruggisser fled Switzerland and now lives in Morrocco where he works today as an independent aviation consultant. .
Big mistake …
SAA is another big mess similar to KQ …
What keeps them going is their unique niche market , geographical position and diaspora in USA , Europe , Middle East , India and Australia …
ANC appointees [ and the Gupta’s ] completely corrupted its leadership …
There were massive bribery scandals involving the purchase of Boeing and Airbus Aircraft that touched Ministers and even President Jacob Zuma himself …
President Cyril Ramaphosa is part of that Deep State “Old Boy” network …
It would be a very bad decision …
