Loss making KQ spending $142m annually on leasing aircraft, report shows

Loss making KQ spending $142m annually on leasing aircraft, report shows

Mkikuyu- Akili timamu said:
ET has 3 times the aircraft KQ operates, its high time they expand to 2 or 3 hubs in Africa..But that is besides the point..Emirates/ Etihad/ Qatar wouldnt mind a hub in east africa in an effort to capture the market
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Airlines with 5 times Ethiopian have a single hub.
You don't go opening new hubs because you have more planes.
 
Fursakibao said:
Idiot of the year. Don't you know that leasing cost more in the long term than buying outright

God save us
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Okay genius.
Today, about 50% of all commercial aircraft are leased.
In the 90s, that number was about 15%.

Idiots like me in the global airline industry have concluded that leasing is economical and the way to go.
 
joto la jiwe said:
I have given you nearly five reasons, just to repeat
1)To boast tourism
2)To attract more FDI
3) To improve investment environment
4) To improve domestic air transport
5) It is National carrier/Flag bearer
6)To make profit


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All those can be accomplished faster with more planes.
20 planes would go a long way to accomplishing many of those than a single dreamliner.
 
Mkikuyu- Akili timamu said:
Friendly prices does not mean less than market price! It means terms that better e.g longer lease period, only intrest and no instant penalties for late payments.
Take it like a person who owns a chicken farm and supplies meat to his own hotel..I know very many succeful people who do this..Keep supply lines and money circulating only within your business..No money is paid to foreign suppliers
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Leta ushahidi wa hizi friendly prices before tuendelee
 
kennedy0000 said:
Okay genius.
Today, about 50% of all commercial aircraft are leased.
In the 90s, that number was about 15%.

Idiots like me in the global airline industry have concluded that leasing is economical and the way to go.
Click to expand...
There is no business in this world, "long term business" which makes big profit from leasing, I showed you balance sheets of airlines which 35% and above of their fleets are leased, nearly all are struggling to make profits, KQ will continue to make loss unless they buy their own planes.
 
kennedy0000 said:
A government that spends hundreds of millions of $ to buy planes, when the country is languishing in poverty, should be toppled.
The only reason ATCL leases 'cheaply' is because you have a populist dictator only interested in being lavished with praises and not making financial sense.
KQ lessors are big companies, with the smallest having a fleet of 151 planes.

2. For someone who claims to be an economist, you have no idea how airline hubs work. JKIA is a hub for only two major airlines. KQ and Fly 540.
Unless you are an airline with hundreds of planes like Delta, you only have one hub or if I use a term you might understand, headquarter.
Why would Ethiopian or Rwandan make JKIA their headquarters when they have their own countries?
When KQ picks passengers from their different African routes, most of these flights must first fly through JKIA. The same way Ethiopian first flies passengers to Bole, or how Emirates passes through Dubai on its way to London.
If KQ were to collapse today, KAA would lose 50% of its revenue instantly.

3. When did Nokia sink? Are you living in an alternative universe? Last year it had revenues of almost $30 billion.
They just stopped making phones because Apple defeated them, like they did to everyone else in the market. Pumping money into Nokia does not mean they will make a better or more popular phone than Apple.
If that was the case, and Nokia had no resources, I'm sure the Finland government would have gladly helped.
The same way capitalist US rescued its banks, automotive industry etc in 2009.
The same way capitalist UK has been subsidizing their privately run railway service for decades.

Companies that have national significance should be saved if possible. Whether they are government owned, public or private, they are the drivers of the GDP.
Samsung is not a government-owned company, but it controls 14% of South Korea gdp. Is that a company that can be left to 'sink'.
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But do you really understand what is a hub, technical stop and destination?
Are you sure Ethiopian Airways is using JKIA as a hub?
 
joto la jiwe said:
There is no business in this world, "long term business" which makes big profit from leasing, I showed you balance sheets of airlines which 35% and above of their fleets are leased, nearly all are struggling to make profits, KQ will continue to make loss unless they buy their own planes.
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Lol.
Do you even listen to yourself. You are telling KQ to buy their own planes when your own ATCL has not even bought a single plane.

All they have are planes bought by the government and given to them. That is not an airline.
Kama ATCL ingekuwa inaoperate kama airline, mngejua bei ya ndege sio bei ya njugu ama korosho.
 
kennedy0000 said:
Lol.
Do you even listen to yourself. You are telling KQ to buy their own planes when your own ATCL has not even bought a single plane.

All they have are planes bought by the government and given to them. That is not an airline.
Kama ATCL ingekuwa inaoperate kama airline, mngejua bei ya ndege sio bei ya njugu ama korosho.
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Hahahahaha, ATCL is 1000% owned by government, is as if you say that your body should buy its own clothes, because clothes you wear now were bought by you and not your body, hahahahaha.
 
joto la jiwe said:
Hahahahaha, ATCL is 1000% owned by government, is as if you say that your body should buy its own clothes, because clothes you wear now were bought by you and not your body, hahahahaha.
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That means you don't have an airline. All you have is a government courier service.
Being owned by the government does not mean you divert health, education, infrastructure money to buy planes. It means the government having all the shares, but the airline operating like an airline.
Why can't it use internal funds to buy planes?
 
kennedy0000 said:
That means you don't have an airline. All you have is a government courier service.
Being owned by the government does not mean you divert health, education, infrastructure money to buy planes. It means the government having all the shares, but the airline operating like an airline.
Why can't it use internal funds to buy planes?
Click to expand...
ATCL works the same way as ET, Emirate and other airlines which are 100% owned by Government, and they are working very successfully, hahahahaha.
 
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