Shutting out other Airlines and forcing agents to book them will not solve KQ woes ,

Matters KQ . Last night on Citizen TV Terryanne Chebet hosted CS Finance and Chris Kirubi . First thing first we all agree that KQ is in trouble and it needs help. So the question is what help and how? I was shocked by two suggestions fronted by CK. JKIA is allowing too many other airlines into Nbi hence they must be reduced, I could not believe that. He posed why should other airlines ferry people say to Dubai while our own KQ is half empty? . Hallo excuse me , it’s about strategy, price , customer care etc and that is why people will choose Emirates and Ethiopian etc. Stephen Covey called this a scarcity mentality,  when you see life as having only so much, as though there were only one pie out there. And if someone were to get a big piece of the pie, it would mean less for everybody else. There is plenty for all. These other airlines are all ferrying people into Nairobi who need to connect to rest of Africa 54 countries and 40 in sub Saharan Africa and who is taking that business? it is KQ. This prescription by CK if it was to happen it will also kill JKIA as a hub . He should go read about the history of Emirates Airlines . In 1985 Gulf Air then owned by then Gulf countries made an ultimatum to Dubai that they either cut down other airlines into Dubai or they pull out. The father of current leader Sheikh Rashid Al Maktoum late Sheikh Rashid Maktoum decided to bite the bullet and refused to stop other airlines. Gulf Air stopped and overnight they lost 75% of the traffic . Emirates Airlines was born out of necessity and by then KQ was already 9 years old. Emirates Airlines started with a mere two aircrafts leased from Pakistan Airlines yes Pakistan. As they say the rest is history. Folks Emirates did not start with 100’s of  767 & 777 . So to my dear friend CK protectionism will never ever take us anywhere . This is what is killing Mombasa not allowing other airlines to get here. Soon Rwanda is unveiling a world class airport mini Changi Int airport at Bugesera , they are building their airlines slowly but surely . If we don’t put our acts together Kigali will be the hub with their ease of doing business and efficiency they can easily do it. We then do not even have to stop the other airlines they will have an alternative and they will switch anyway and CK’s wish will be realised. The second shocking prescription he gave is that all agents must book 50% to remain licensed. I can’t believe this .  A 1970 solution to a 2015 problem.  It is a free  market besides KQ ‘s woes is not revenue . They made 110B revenue up form Ksh 106 the problem is cost, cost and again cost which Is in the hands of the management. No one wants to address the elephant in the room first dreamliner purchase deals which is called fleet ownership cost jumped from Ksh12B to Ksh 25B, & what was the exit plan. Second  fuel hedging & exit plan that cost them Ksh6B , why hide behind confidentiality clause when you want tax payers money to bail you out and thirdly  Operating  Expense of Ksh 4B.  These 3 items blew a Ksh 22B hole in KQ’s P &L . Emirates , Ethiopian and others are not the problem . They don’t run KQ , Emirates & Ethiopian built their fleet slowly but surely.  Before any bailout is dished out Ksh 60B is what entire Kenya’s tourism  earns in a year . We need a proper forensic audit by a very independent audit firm otherwise it will be throwing good money after bad money . If nationalism alone was enough to make an airline successful Nigeria Airways would be ruling the skies.  Shutting out other Airlines and forcing agents to book KQ will not solve their woes . The problem is inside KQ not outside. Let us be realistic and YES KQ can soar once again.

2 thoughts on “Shutting out other Airlines and forcing agents to book them will not solve KQ woes ,

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  1. I guess there is a legal way to save KQ: Bankruptcy! Government doesn’t need to do anything.. US Airways – United, American, Delta, and Continental Airlines have all been through bankruptcies for restructuring.. Could also put KQ into bankruptcy, and have GoK subsidize 50% of ticket costs to boost the tourism sector through them.. Kenya cannot afford to lose KQ Largely because of export businesses reliance on it. But bankruptcy is the right vehicle. #KQPrideOfAfrica

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  2. KQs customer services sucks! And hamu the mombasa mgr or whoever he is doesnt even knw he to speak to customers. Zero management! Serious change is needed!

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