That is why GoT bought the planes Cash. There are no third parties involved..You ask where it got this money from? Savings from corruption and luxury government spending cutsBasically GoT spreads risk to tax payers by hiving off the burden from ATCL,so its only a matter of shifting risk,your purported trickle down effect can be too insignificant if long term lease actually works which i highly doubt.well kq squarely shoulders it blunders without hard earned tax payers money
Budjet ⊙Wewe wacha porojo budjet inasomwa matumizi siku inayotolewa. Halafu baadae hufanywa uhakika tu.
Halafu eti "msomi" wa chuo kikuu.
Haki ya Mungu, ikiwa wewe msomi wa chuo kikuu basi Tanzania tuna safari ndefu sana ya kwenda..
Yes, the problem with airlines is working capital / cashflow problems which leasing makes is easier for an airline..But ofcourse you dont lease from cayotes and brifcase opportunists, you lease from a GoT, which has the ability to spread its expectations for very very long periodsMkikuyu Akili-Timamu you beaten around the bush far enough,the difference between the cost of purchase vis a vis the cost of leasing is KING,table that with accurate figures kama wewe ni mwieconomia halisi
thirdly. purchasing the new planes on commercial credit without being sure of which routes are going to operate, is a poor (I don't know which word to use) management decision.
I conclusively agree with the fellow who said, the KQ is making loss because of poor management of the company.
Wewe acha kuandika upupu hapa. Kumbuka mmetutangulia kidogo tu.Wewe Mkikuyu Akili-Timamu purchasing assets such as planes is capital intensive,tanzania is a poor third world country with more immediate needs such as health care provision , state sponsored education and etc,venturing into capital intensive projects is upside economics just because a tin pot dictator want to prop up his ego.invest in people first,the asian tigers did not rise by draining their coffers in white elephants,they invested heavily on human capital and damn the ROI didn't dissapoint, the results are out there for sampling,an average tanzanian is highly likely to die with boarding a boeing,and you are busy purchasing them,what a mismatch,atleast tarmacking roads would have been logical.A typical tanzanian is illitrate or semi literate how about you start by sponsoring university studends,start ups,tech scenes,thats how progressive societies move people out of abject poverty but hey this is africa .T I A.
And who told you Tz has stopped funding education or health care? Infact Tz has nearly doubled its investments in these 2 areas since 2016 fundend by twice the amount of taxes now being collected.Wewe Mkikuyu Akili-Timamu purchasing assets such as planes is capital intensive,tanzania is a poor third world country with more immediate needs such as health care provision , state sponsored education and etc,venturing into capital intensive projects is upside economics just because a tin pot dictator want to prop up his ego.invest in people first,the asian tigers did not rise by draining their coffers in white elephants,they invested heavily on human capital and damn the ROI didn't dissapoint, the results are out there for sampling,an average tanzanian is highly likely to die with boarding a boeing,and you are busy purchasing them,what a mismatch,atleast tarmacking roads would have been logical.A typical tanzanian is illitrate or semi literate how about you start by sponsoring university studends,start ups,tech scenes,thats how progressive societies move people out of abject poverty but hey this is africa .T I A.
You are just bitter..ATCL is a 2 year startup and you should be more concerned about KQ's competitors unless you have fallen so low to compare yourself with a startup that got ICAO approvals only last year and has only 3 internatinal routesATCL was dead and deep buried down to the dumps,what GoT is basically doing is rescutating a skeleton,perhaps that works in TZ we have heard tales from down there,but running an airline is not daddies and mommies roadside kiosk where you stock up by an hour and voila you up and running,its deep and complex. KQ was fell and scrap it wings but restructuring under the stewardship of revamped board is proving to be worthy,the pride of africa is roaring back to life,it was not dead but wounded,but the wounds have been tendered.its just a matter of time before we are back to profit territories.
If thats how you want to look at it then why is JPM trying to revive ATCL when the likes of ET, KQ,Emiratess, Qatar,KLM sufficiently serve the TZ market withough GoT having to incure any exenses,,, Wouldnt the money used to buy the new ATCL planes have been better used to solve Nutritional problems wich Tz is number 3 in Africa interns of stunted growth!!!Likewise air travelers will always be there whether KQ exists or not. Those 4.4m pax would have travelled with other airlines without passing a single cent of loss to taxpayers
No, Tz collected $6.2 billion 2016/2017. See thats your problem, you think Tz is the same since the 90's.Correct me if am wrong Mkikuyu Akili-Timamu but tanzania collected around $ 800 million in revenue last year.the cost of standard boeing is around $90 million,i heard you bouhgt several,do the math and tell me how that deficit is squeezed in between salaries,sgr,stieglers gorge,port expansion etc.simple arithmetic dictates that impossible unless .some sectors are seriously underfunded......Don't worry about kq its warding off competition fiercely from its countersparts,as a matter of fact plans are underway for a comprhensive alliance with SAA,mauritius and rwandair:its hightime we put ET to its place,wamekuja sana aiseee
The reason for reviving ATCL is to boost tourism and airport services business. Also Tz has a very high potential for Horticulture even better than kenya and as the Tz expands into this sector there is need of a reliable cargo carrier in the form of ATCLIf thats how you want to look at it then why is JPM trying to revive ATCL when the likes of ET, KQ,Emiratess, Qatar,KLM sufficiently serve the TZ market withough GoT having to incure any exenses,,, Wouldnt the money used to buy the new ATCL planes have been better used to solve Nutritional problems wich Tz is number 3 in Africa interns of stunted growth!!!
If KQ didnt exists would the other airlines have employed the 5000 direct employees employed by KQ ... eg engineers, pilots, flight attendants??? Without KQ, Nairobi wouldnt have been made the MRO center authorized to do repaires and maintenance for all the embrae e-jets in sub sahara Africa thus loosing such a luctrative business..
mbraer, Kenya Airways to Establish Authorized E-Jet MRO Service Center
By Darren Shannon, Aviation Daily | Nov. 28, 2012
Embraer has started negotiations with Kenya Airways to open the airframer's second authorized service center for commercial aircraft in Africa.
The talks are ongoing and are expected to be concluded mid-2013, an Embraer spokeswoman tells Aviation Week. The center will specialize in E-Jets, she adds.
No other details were provided, although the center is likely to be based in Nairobi.
If successful, Kenya Airways will join Egyptair as the second African carrier to be selected as an E-Jet authorized service center in Africa.
Kenya currently operates two of the 10 Embraer 190s it has on order, while Egyptair has its full complement of 12 E-170s.
Embraer, Kenya Airways to Establish Authorized E-Jet MRO Service Center
KQ flies 1 million tonnes of flowers out of Kenya, if the airline did not exist, it would have meant loosing foreign exchange everytime a cargo plane leaves Kenya to Europe,
Nairobi would also not be the MRO center for Boeing 737, 767, 777 in sub sahara Africa outside SA
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All these Airlines would hav had to fly their planes to Europe for Servicing including all the other local Kenyan airlines, they would all be contributing to devaluing the Kenyan currency by moving money elsewhere
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We have not even begun talking about the benefit of having KQ as a tool for diplomacy... How many countries especially in Africa, has Kenya been able to get on its good side just by connecting the citizens of that country to the rest of Africa and the world through KQ..... How many africans know Kenya because of Kenya airways...... Would JKIA be earning so much revenue for transit persengers were it not for KQ conncting them though ts Nairobi hub???? Remember how Sierra-Leone threatened to cut diplomatic ties with Kenya during the Ebola crisis if KQ suspended flights to the capital..
When KQ started direct flights to Livingstone island in Zimbabwe thus ensuring tourists wishing to see the Victoria falls on the island could travel directly to the island, The Zimbabwean govt was more than grateful for that, they even sent govt officials to come and personally thank GoK (Even though it was purely a KQ's decision)
Hahahaha, be informed that, 97% of our national budget is locally financed, above all we are paying for our SGR, Stiglers Gorge hydroelectric power, we do provide free education from primary to Secondary schools, soon University education will be free, we have the best Hospitals in the region.Correct me if am wrong Mkikuyu Akili-Timamu but tanzania collected around $ 800 million in revenue last year.the cost of standard boeing is around $90 million,i heard you bouhgt several,do the math and tell me how that deficit is squeezed in between salaries,sgr,stieglers gorge,port expansion etc.simple arithmetic dictates that impossible unless .some sectors are seriously underfunded......Don't worry about kq its warding off competition fiercely from its countersparts,as a matter of fact plans are underway for a comprhensive alliance with SAA,mauritius and rwandair:its hightime we put ET to its place,wamekuja sana aiseee
KQ is a National Company, the government has invested heavily, while Safaricom is purely Private, GoK has invested nothing.My bad i mean't $8 billion.so how many planes has GoT purchased so far.then when and which losses has KQ pass over to tax payers,thats a private traded company,its like safcom posting losses then shifting burden to the tax payers,it doesn't make sense
Last year alone, GoK put in 4bn into kq cummulativly over the years around 20bn..My bad i mean't $8 billion.so how many planes has GoT purchased so far.then when and which losses has KQ pass over to tax payers,thats a private traded company,its like safcom posting losses then shifting burden to the tax payers,it doesn't make sense