Kenya Airways Faces “Imminent Collapse”

[Mwanzi1]

Wajameni, vipi tena majirani kuna nini huko? ile airline ya middle income imefikia hapa tena. Haya welcome to the club.

Planes At Risk Of Being Repossessed.

Well, it looks like you can add Kenya Airways to the list of airlines on the verge of collapse. They’re in good company, between airberlin, Alitalia, and South African Airways. I’ve known for a while that Kenya Airways is in bad shape, but I didn’t realize just how bad their current situation was.

Kenya’s Standard Digital has the story of how overseas banks have apparently carried out inspections of Kenya Airways’ planes in preparation for repossessing them, should new financing not come through for the airline. Per the story:

In a civil application filed at the Supreme Court of Kenya last month, KQ wants three banks opposed to the debt restructuring process to be compelled to change their mind because it is ‘just and necessary to safeguard the rights and existence’ of the airline.

“Whilst these lenders are supportive of the company’s restructuring proposal, these secured lenders have made preliminary preparations such as airline inspections to repossess such aircraft should the implementation of the company’s restructuring be delayed” KQ claimed in the court papers.

Per Kenya Airways’ finance director:

“I confirm that the failure to determine this application and to set aside the orders granted to the first applicant (Equity Bank) will mean that the airline will in all likelihood imminently cease to operate as the financial accommodation it has been receiving from its creditors was on the basis of the restructuring being completed by end of August 2017.”

The airline also claims that it faces “imminent collapse:”

KQ adds that it faces imminent collapse, with catastrophic consequences to the economy including job losses, creation of an air transportation crisis, loss of Kenya’s status as regional transportation hub, and systemic disruption in the banking sector.

Unfortunately Kenya has faced some stability issues over the years (terrorism, ebola in the region, etc.), and while Ethiopian Airlines has been growing, Kenya Airways has been shrinking, and also performing worse financially. The airline presently has debt of Sh142.34 billion, which is equivalent to roughly 1.4 billion USD.

Several years ago Kenya Airways was planning a huge global expansion. For example, in 2011 they published a 10 year plan which saw them more than doubling their destinations and flying to six continents by 2021. Here’s what they expected their routemap to look like:

Instead the airline has been leasing planes to other airlines (including Oman Air), cutting routes, and is on the verge of going out of business.

At the same time Kenya Airways is apparently planning on launching flights between Nairobi and New York. The DOT just granted them permission to fly to the US. As if they weren’t losing enough money already…

http://onemileatatime.boardingarea.com/2017/10/06/kenya-airways-collapse/

Kenya Airways faces repossession of aircraft by banks - Airliners.net

 

[joto la jiwe]

Wajameni, vipi tena majirani mbona kuna nini tena huko? ile airline ya middle income imefikia hapa tena. Haya welcome to the club.

Planes At Risk Of Being Repossessed.

Well, it looks like you can add Kenya Airways to the list of airlines on the verge of collapse. They’re in good company, between airberlin, Alitalia, and South African Airways. I’ve known for a while that Kenya Airways is in bad shape, but I didn’t realize just how bad their current situation was.

Kenya’s Standard Digital has the story of how overseas banks have apparently carried out inspections of Kenya Airways’ planes in preparation for repossessing them, should new financing not come through for the airline. Per the story:

In a civil application filed at the Supreme Court of Kenya last month, KQ wants three banks opposed to the debt restructuring process to be compelled to change their mind because it is ‘just and necessary to safeguard the rights and existence’ of the airline.

“Whilst these lenders are supportive of the company’s restructuring proposal, these secured lenders have made preliminary preparations such as airline inspections to repossess such aircraft should the implementation of the company’s restructuring be delayed” KQ claimed in the court papers.

Per Kenya Airways’ finance director:

“I confirm that the failure to determine this application and to set aside the orders granted to the first applicant (Equity Bank) will mean that the airline will in all likelihood imminently cease to operate as the financial accommodation it has been receiving from its creditors was on the basis of the restructuring being completed by end of August 2017.”

The airline also claims that it faces “imminent collapse:”

KQ adds that it faces imminent collapse, with catastrophic consequences to the economy including job losses, creation of an air transportation crisis, loss of Kenya’s status as regional transportation hub, and systemic disruption in the banking sector.

Unfortunately Kenya has faced some stability issues over the years (terrorism, ebola in the region, etc.), and while Ethiopian Airlines has been growing, Kenya Airways has been shrinking, and also performing worse financially. The airline presently has debt of Sh142.34 billion, which is equivalent to roughly 1.4 billion USD.

Several years ago Kenya Airways was planning a huge global expansion. For example, in 2011 they published a 10 year plan which saw them more than doubling their destinations and flying to six continents by 2021. Here’s what they expected their routemap to look like:

Instead the airline has been leasing planes to other airlines (including Oman Air), cutting routes, and is on the verge of going out of business.

At the same time Kenya Airways is apparently planning on launching flights between Nairobi and New York. The DOT just granted them permission to fly to the US. As if they weren’t losing enough money already…

http://onemileatatime.boardingarea.com/2017/10/06/kenya-airways-collapse/

Kenya Airways faces repossession of aircraft by banks - Airliners.net

One of the biggest problem facing Kenya as a country is poor planning, which leads to wrong priorities setting which is mainly caused by lack of proper vision that gives birth to disabled missions.

 

[Jay456watt]

Meanwhile in Tanzania..mitungi ya chang'aa yanagawanywa kama njugu na wazungu kule Canada...😀😀😀😀

Tanzanian aircraft seized in Canada over $38m debt -Lissu
Tanzanian aircraft seized in Canada over $38m debt, claims Lissu
A commercial aircraft that was expected to be delivered to the national carrier Air Tanzania in July this year has been detained in Canada after the government failed to pay $38 million (Tsh83 billion) owed to a contractor, an opposition member of parliament said on Friday.

Tundu Lissu, the Chadema MP for Singida East, told reporters that the Bombardier Q400 was seized after failure by government to pay the money it owed Canadian Stirling Civil Engineering Limited over a cancelled contract.

The firm had been contracted to construct the Wazo Hill-Bagamoyo road in Dar es Salaam but the government terminated the contract.

The contractor then went to the International Court of Arbitration and won the case.

“The government lost the case in 2010 and was ordered to pay the compensation amounting to $25 million with an interest of eight per cent,” said Mr Lissu.

 

[Jay456watt]

Tanzania mitungi ya chang'aa 😱😱😱😀😀😀

Kenya planes

 

[joto la jiwe]

Tanzania mitungi ya chang'aa 😱😱😱😀😀😀

Kenya planes

Ukiona mtu hajibu mada iliyowekwa badala yake anatafuta kuchepusha mada na mada ingine, wenye akili wameshajua kwamba hali ni mbaya, wewe kama unataka fungua uzi huo ili watu wachangie, usiharibu uzi wa mwenzio, sasa hivi jikite kwenye uzi huu, au funguo huo unaotaka utapata majibu muafaka

 

[Jay456watt]

Ukiona mtu hajibu mada iliyowekwa badala yake anatafuta kuchepusha mada na mada ingine, wenye akili wameshajua kwamba hali ni mbaya, wewe kama unataka fungua uzi huo ili watu wachangie, usiharibu uzi wa mwenzio, sasa hivi jikite kwenye uzi huu, au funguo huo unaotaka utapata majibu muafaka

mwingilie nchi yetu nasi tunyamaze sio??? ngoja tu...nimeweka gloves kando...tucheze mchezo mchafu sasa...leta ya Kenya nami nitakuwa wa kwanza kuleta ya Tanzania..mtindo utakua huo huo kwanzia sasa....ubaya wenu mnaona wakenya wamenyamaza mnafikiri ni wajinga hawajui mashida zilizojaa Tanzania...😀😀😀

 

[joto la jiwe]

mwingilie nchi yetu nasi tunyamaze sio??? ngoja tu...nimeweka gloves kando...tucheze mchezo mchafu sasa...leta ya Kenya nami nitakuwa wa kwanza kuleta ya Tanzania..mtindo utakua huo huo kwanzia sasa....ubaya wenu mnaona wakenya wamenyamaza mnafikiri ni wajinga hawajui mashida zilizojaa Tanzania...😀😀😀

Sio vibaya tena ni vizuri ukaleta changamoto ya Tanzania, lakini usifanye fujo, na wewe tafuta maeneo ambayo unadhani ni udhaifu wa Tanzania na fungua uzi ili watanzania wachangie, hivi unavyofanya inakuwa ni fujo haileti tena maana ya mjadala, huu utani wa jadi kati ya Kenya na Tanzania, haupaswi kuingiza hasira, sisi huku Tanzania tulifanikiwa kuondoa ukabila kwa kusisitiza utani miongoni mwa makabila, kwa mfano kwenye msiba mtu anafanya utani unaoumiza sana, ukijaribu kumzuia eti kwa sababu anazidi kukutia majonzi, watu wote watakushangaa na kukuzuia usiharibu hiyo tabia iliyojengeka, unachopaswa kufanya ni wewe kusubiri au kutafuta weak points zake ili ulipizie lakini sio kuharibu wakati yeye anakutania

 

[Jay456watt]

Sio vibaya tena ni vizuri ukaleta changamoto ya Tanzania, lakini usifanye fujo, na wewe tafuta maeneo ambayo unadhani ni udhaifu wa Tanzania na fungua uzi ili watanzania wachangie, hivi unavyofanya inakuwa ni fujo haileti tena maana ya mjadala, huu utani wa jadi kati ya Kenya na Tanzania, haupaswi kuingiza hasira, sisi huku Tanzania tulifanikiwa kuondoa ukabila kwa kusisitiza utani miongoni mwa makabila, kwa mfano kwenye msiba mtu anafanya utani unaoumiza sana, ukijaribu kumzuia eti kwa sababu anazidi kukutia majonzi, watu wote watakushangaa na kukuzuia usiharibu hiyo tabia iliyojengeka, unachopaswa kufanya ni wewe kusubiri au kutafuta weak points zake ili ulipizie lakini sio kuharibu wakati yeye anakutania

nimekwambia mtindo ni huo huo...mwaga za Kenya nimwage za Tz...😀😀😀😀unless mnaishi first world country na sio LDC...hapo ndio nitakosa la kusema...but as long as mtindo ni huu hapa pichani, nitapata uchafu wenu na nitaumwaga hapa tu😀😀😀 mlete picha za kibera na Kenya airways hapa kila uchao nasi tunanyamaza tu..mkafikiri hatujui kutumia Google sio?...no more...😀😀😀wakenya huwa wanasema kama mbaya mbaya!!

 

[joto la jiwe]

nimekwambia mtindo ni huo huo...mwaga za Kenya nimwage za Tz...😀😀😀😀unless mnaishi first world country na sio LDC...hapo ndio nitakosa la kusema...but as long as mtindo ni huu hapa pichani, nitapata uchafu wenu na nitaumwaga hapa tu😀😀😀 mlete picha za kibera na Kenya airways hapa kila uchao nasi tunanyamaza tu...no more...

Sisi hatujazoea fujo kama huko, endeleeni kupigana mwisho mgawane nchi yenu kwa sababu asili yenu ni fujo, sisi ni watu wastaarabu, tunajiepusha na fujo zisizokua na maana, kwa hiyo kama hutaki kujibu uzi huu kuhusu kufilisika kwa KQ, na hutaki kufungua uzi wako tofauti ili tuchangie, basi endelea kufanya fujo, hakuna atakayekujibu, tutasubiri mtu aliyestaarabika kama watanzania ili tuweze kujadiliana na yeye

 

[Mwanzi1]

One of the biggest problem facing Kenya as a country is poor planning, which leads to wrong priorities setting which is mainly caused by lack of proper vision that gives birth to disabled missions.

In my view, Kenya has this old tendency of going in first or being the first to do things. Hiyo kitu wamekuwa wanaifanya siku nyingi kila mara inawaagusha kwenye pua maana unakuta wale watu uliotakiwa kufanya nao biashara bado wako nyuma na hawawezi kufanya biashara na wewe. The same problem white South African created for now black regime in power. The white decided earlier on that they will never do business with the rest of Africa, so they create their economy to direct integrated with European, American and Australians. Leo hii kibao kimegeuka Africa wanaonekana wanajipanga, even is looking on Africa for there future growth, South Africa's wanashidwa kupata mindful partners to do business with maana uchumi wao haukutengenezwa kufanya biashara na uchumi ndogo mdogo za Africa.

Sasa na Kenya wao wanajiumiza the same way kama South Africa. Instead of going with your partners wao wanakimbilia kuwa the first in the region. Export ya mafuta wao wao first, banking wao first, transportation first, insurance, money exchange etc. Look what is going on in north, there building infrastructure in the hope that Ethiopia and South Sudan will came to the rescue. But without guarantees and incentives who will come. Tanzania walivyo tafuta bomba la mafuta kutoka Uganda, they didn't started with Uganda, they building alliance's first with DRC, Zambia, South Sudan, Burundi and Rwanda. Remember marais hao wote wamekuja Tanzania in the past 18mth na part of agenda is joinging bomba la mafuta [to and from] Tanzania maana na wao wanatala gesi kutoka kwetu.

 

[Mwanzi1]

mwingilie nchi yetu nasi tunyamaze sio??? ngoja tu...nimeweka gloves kando...tucheze mchezo mchafu sasa...leta ya Kenya nami nitakuwa wa kwanza kuleta ya Tanzania..mtindo utakua huo huo kwanzia sasa....ubaya wenu mnaona wakenya wamenyamaza mnafikiri ni wajinga hawajui mashida zilizojaa Tanzania...😀😀😀

Unanikumbusha nyimbo ya sina makosa. Calm down ndugu, this was long time coming with that huge fleet of dreamliners, something would've snap with minimal effort.

 

[joto la jiwe]

In my view, Kenya has this old tendency of going in first or being the first to do things. Hiyo kitu wamekuwa wanaifanya siku nyingi kila mara inawaagusha kwenye pua maana unakuta wale watu uliotakiwa kufanya nao biashara bado wako nyuma na hawawezi kufanya biashara na wewe. The same problem white South African created for now black regime in power. The white decided earlier on that they will never do business with the rest of Africa, so they create their economy to direct integrated with European, American and Australians. Leo hii kibao kimegeuka Africa wanaonekana wanajipanga, even is looking on Africa for there future growth, South Africa's wanashidwa kupata mindful partners to do business with maana uchumi wao haukutengenezwa kufanya biashara na uchumi ndogo mdogo za Africa.

Sasa na Kenya wao wanajiumiza the same way kama South Africa. Instead of going with your partners wao wanakimbilia kuwa the first in the region. Export ya mafuta wao wao first, banking wao first, transportation first, insurance, money exchange etc. Look what is going on in north, there building infrastructure in the hope that Ethiopia and South Sudan will came to the rescue. But without guarantees and incentives who will come. Tanzania walivyo tafuta bomba la mafuta kutoka Uganda, they didn't started with Uganda, they building alliance's first with DRC, Zambia, South Sudan, Burundi and Rwanda. Remember marais hao wote wamekuja Tanzania in the past 18mth na part of agenda is joinging bomba la mafuta [to and from] Tanzania maana na wao wanatala gesi kutoka kwetu.

Yaani hata huwezi kuelewa lengo la Kenya ni lipi katika project nyingi, ukiondoa Galana irrigation project, mingine yote sioni maana yake, wanataka kuoneka kwamba wanafanya kwa sifa lakini ukijiuliza hasa kwanini wanajenga barabara ya Mombasa Nairobi kwa kiwango hicho, wakati SGR ipo hupati jibu, wengeweza tu kuikarabati kwa nusu ya pesa waliyopanga na pesa ingine ikaenda kwenye miradi ya maji kwa mfano, Kenya inatatizo kubwa sana la upatikanaji wa maji kwa matumizi ya binadamu, hadi leo Nairobi kuna mgao wa maji, waligundua maji mengi sana dhini ya ardhi huko Turkana, la ajabu wanajenga miradi miwili identical, SGR na hiyo super high way Mombasa Nairobi, that is purely duplication of projects

 

[Mwanzi1]

Yaani hata huwezi kuelewa lengo la Kenya ni lipi katika project nyingi, ukiondoa Galana irrigation project, mingine yote sioni maana yake, wanataka kuoneka kwamba wanafanya kwa sifa lakini ukijiuliza hasa kwanini wanajenga barabara ya Mombasa Nairobi kwa kiwango hicho, wakati SGR ipo hupati jibu, wengeweza tu kuikarabati kwa nusu ya pesa waliyopanga na pesa ingine ikaenda kwenye miradi ya maji kwa mfano, Kenya inatatizo kubwa sana la upatikanaji wa maji kwa matumizi ya binadamu, hadi leo Nairobi kuna mgao wa maji, waligundua maji mengi sana dhini ya ardhi huko Turkana, la ajabu wanajenga miradi miwili identical, SGR na hiyo super high way Mombasa Nairobi, that is purely duplication of projects

Na usisahau ka-mshiko wanasiasa wanajikatia cha juu kwenye project nyingi.

 

[Jay456watt]

mtindo ni ule ule...mwaga nimwage...😀😀😀

 

[Jay456watt]

Unanikumbusha nyimbo ya sina makosa. Calm down ndugu, this was long time coming with that huge fleet of dreamliners, something would've snap with minimal effort.

wacha kujitetea...mtindo ni ule ule...mwaga hapa nimwage nami pia....next time be4 ulete habari za kenya airways, hakikisha hizo bombadier zenu hazina deni na ndizo bora kabisa Afrika nzima..otherwise, nitatafta uchafu nije nami pia nimwage hapa tufanane...😀😀😀

 

[Mwanzi1]

wacha kujitetea...mtindo ni ule ule...mwaga hapa nimwage pia....

Mbona kama unapambana na hewa, shida ni nini? Kwani kilicho kwenye mada ni uwongo?

 

[Jay456watt]

Sisi hatujazoea fujo kama huko, endeleeni kupigana mwisho mgawane nchi yenu kwa sababu asili yenu ni fujo, sisi ni watu wastaarabu, tunajiepusha na fujo zisizokua na maana, kwa hiyo kama hutaki kujibu uzi huu kuhusu kufilisika kwa KQ, na hutaki kufungua uzi wako tofauti ili tuchangie, basi endelea kufanya fujo, hakuna atakayekujibu, tutasubiri mtu aliyestaarabika kama watanzania ili tuweze kujadiliana na yeye

ustaarabu wa kupiga Lissu risasi mchana peupe...sio??😀😀 mdaganye mwingine...sio jirani yako

 

[Jay456watt]

Mbona kama unapambana na hewa, shida ni nini? Kwani kilicho kwenye mada ni uwongo?

aliyesema ni uwongo nani? kama tu mitungi yenu ya chang'aa yaliyoshikiliwa kule Canada...hamna uwongo hapo pia...😀😀😀😛😛😛

 

[joto la jiwe]

ustaarabu wa kupiga Lissu risasi mchana peupe...sio??😀😀 mdaganye mwingine...sio jirani yako

Ninyi wangapi mliowauwa, heri lisu bado mzima, anza kuhesabu kuanzia Tom Mboya, Pio Gama Pinto, Robert Aoko, na umalizie kwa Msando na jana mwanafunzi wa University of Nairobi, achilia mbali Makaburi kule Mombasa na Juma Rogo, sio chini ya watu elfu 30, wewe nitajie watu wawili tu walioliwa kwa risasi Tanzania

 

[Mwanzi1]

aliyesema ni uwongo nani? kama tu mitungi yenu ya chang'aa yaliyoshikiliwa kule Canada...hamna uwongo hapo pia...😀😀😀😛😛😛

Ndio maana nikasema majirani join the club. (Ukisoma mwanzo wa thread utaona). Imagine the whole KQ going up in the smoke eishhh..