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Kenya Airways (KQ) has reported a Ksh 7.6 billion loss in its 2018 financial year performance from Ksh 6.4Bn in FY17 due to a surge in operating costs.
Titus Naikuni killed the Pride of Africa………It will take years before KQ is back to its knees!
Will it ever get back on it’s feet?
When we thought that that’s the lowest it can fall we get to be told that it just started sinking!!!
Well, im just optimistic that one day it will…even if it’s in the next 100 years
It’s never coming back, if Etihad is making major losses, jet Airways if india closed shop yet these are fully functioning better than KQ.
Many big companies make losses nothing new.
you mean feet? ama kuna vile KQ ilibidi walale tu coz being on their knees is just too mundane:D:D:D
It needs to go back to its knees then stand on its feet.Its such a long journey
KQ needs to be made a parastatal in order to survive. The executive has realized this but not MPs who are right not at the coast writing a report on why KQ cannot take over KAA. Successful airlines like Ethiopian, Emirates, Qatar are wholly government owned. This makes it easier to inject cash in the airline and give it subsidies without the noise of “its a private entity”. They don’t worry about investors and dividends payout. Tiny Rwandair is rising fast because of this too.
All in all, in Africa, it is only Ethipoina Airlines that is making money. South African Airlines, Egypt Air, Air Mauritius and Seycheles and all on government support. You look at Ethiopian Airlines financial reports and their costs are ridiculously low. It is rumoured that the government pumps in lots of money to keep it afloat and maintain the low fares. It also operates in a higly protected environment back home; All agents selling tickets in Ethiopia MUST sell 80% Ethiopian Airlines and government agents check to ensure compliance. Also, all foreigners buying tickets in Ethiopia must buy in USD or show proof of where they exchanged the cash if buying in Birr. But the same foreigners can walk into an Ethiopian Airlines office and purchase the tickets in local currency without a hitch. Which customer will take all the trouble to buy another airline. Then Ethiopian are insanely loyal, It is treason in Ethiopia for a government representative to fly any other airline except Ethiopian Airlines. During the riots and the several state of emmergencies in 2016-2018, internet used to be completely blocked but somehow Ethiopian Airlines could have internet and sell tickets while all other airlines could not.
These small frustrations highly favour the local airline. In Kenya, KQ has only 35% of the market share with all Kenyans unashamedly proclaiming how KQ is expensive and they will never board it.
Here in Kenya, we see our national football and rugby teams without shame flying Ethiopian Airlines on routes that the national carrier operates because of a $ 50 fare difference (same cash from government). Proclamations by the govenrment for civil servants and parastatals to fly KQ only remain empty rhetoric.
Having kina Michael Joseph and Martin Otieno Oduor on the board will not change much. It is the industry.
Oh and Ethiopian Airlines CEO is the same Bole International Airport CEO and also sits on the civil aviation authority board, so he has a say in all airlines applying for landing rights in Ethiopia and if they pose a threat to ET then they are rejected. Here in Kenya the civil aviation authority dishes out landing rights to any airline that applies in the name of “bringing more tourists” this of course kills KQ. Why should Ethiopian airlines be allowed to land in Mombasa? Why should Qatar and Rwandair be allowed to land in Mombasa? KQ only lands in one airport/city in their home countries. They should bring the traffic to JKIA then the national carrier handles the domestic segments.
Uganda has been existing without a national airline and nobody died. Drc congo businessmen are the greatest users of wilson airport, Kq makes money na inaingia kwa mifuko ya watu. Government should sell its stake in kq ikikufa ikufe peke yake.
worst analogy so far ,but it makes sense…i think.One thing’s for sure,KQ is cash strapped,otherwise they wouldn’t paying their shareholders those crazy bucks coz for me it doesn’t make any sense riding a dead horse,there’s something those honchos are hiding
Just let the damn thing die…we don’t use it anyway
Sh6.4 bn was not full year 2017. It was a 9 month report.
Their full year loss was over Sh10 billion.
But I guess KQ at some point changed their reporting schedule which is confusing everyone. This might actually be a smaller loss than last year.
No one died but most of their traffic is re-routed to Nairobi or Bole.
Go check Entebbe passenger numbers.
Their aircraft are also extremely old and uncomfortable especially in all Africa routes… Utakaaje kwa ndege for over 4 hours with no entertainment system ile inakuanga nyuma ya kiti and non-reclining seats the refreshments/food is another big joke and to top it all very unprofessional cabin crew wako na tabia za kiuchokoraa
Did you see their salaries, top honchos
kq makes money it is just that parasitic deals with some hot shots the money it make is channelled there
Is KQ really a goverment airline, Is it not part owned by KLM.
The grass is greener in the other side.
If KQ closes shop, forget the fares you are complaining of now, you will pay even more and reroute through other countries just to fly to destinations that previously had direct flights through JKIA. Why? KQ is responsible for half of passenger traffic through JKIA. Its African network drives passengers through JKIA to connect to other destinations. Those passengers numbers attract other airlines to fly into JKIA. When KQ stops flying. That 4 million passengers numbers into JKIA ends and it loses its hub status. All these KLM, BA, Emirates, Air France etc will reduce or stop flying here and go to other hubs. You will then know what Ug, Tz etc and other countries feel like by adding a extra $200 to buy a ticket to fly to a hub and spend more there to fly to other destinations. Add 6-7 hrs flight and airport time to get there. Don’t assume the turbo probs airlines here can step up to replace KQ with no financial might and take on the same matrix of situations that KQ faces.
I for one like this Polish CEO, he doesn’t fear speaking his mind plainly. Spending the $1 billion to buy the 3no. 777ER was a bad decision as KQ wasn’t ready for long haul flight at it network then. The financial package to get them were purely on commercial terms that was expensive and it relied on complete success on its use to pay for it. They are now leased out but still cost KQ 200 million monthly. Fuel hedging contract means KQ buy fuel at high prices before oil prices tanked. KQ has high wages structure similar to global airlines which are supported by their own national treasury. In order for them to survive they have to improve their bottom line through efficiency. That meant closing loss making routes, opening new profitable routes, use their fleet efficiently I.e more trips per day and cut off losses in their systems through theft and skewed supplies. That is what the new management is doing. Its not a quick fix but the overflow of cash has reduced to a stream. To plug it completely the changes need to go further. KQ faces two challenges after completing its balance sheet refinancing to make expensive short term loans into long term loans. First its aging 737NG fleet is due to be replaced after incredible service. They have made the decision to stick with Boeing and get the 737 Max. That’s a big call, but I’m not the one being paid big bucks to make such a defining call that can make or break them. Their explanation is that they have 6-12 months to witness FAA recertify the 777-Max afresh not only to rectify the stall system that made them lose the two planes but all other systems that will be checked as well. Its a big gamble but they hope with the 737 Max orders cancellation, they can easily and cheaply get them now once its fixed. Two KQ has decided its no longer feasible to buy planes over leasing them. They are going full in at leasing. They hope thay derives more cheaper fleet acquisition cost to its finances. Once 737 Max is fixed, the leasing companies will get their new planes that they already paid for before the accident but with rebates to compensate them and keep them as customers. The same leasing companies are worried they have no customers to lease to and are driving promotions by giving even more cheaper lease prices to airlines. That’s where KQ is targeting. Getting a whole fleet at a fraction of its previous estimate. With 737 Max 30% more fuel efficiency they can finally climb to profitability. Lastly the Embraer fleet needs to be replaced as well in 5 years time and that is the long term plan to lease the newer E2 that is also fuel efficient, more agile and comfortable. In all KQ has a plan to lease 50 new planes in the next 5 years including more dream lines for USA/Asia routes. It all depends on how they rework the debt, loans and income drains.
I say good luck to them.