……Kenya Airways…..The Pride of Africa….in Red tape unless stringent measures are put in place to ensure this doen’t happen…….

…..The news that greeted Kenyan citizenry,that Kenya Airways is in a red tape came as a shocker to us. Kenya Airways’ Kshs.25.7 billion historic loss has sent shock waves across the corporate world with analysts giving varied opinions on what led the carrier to fly into such a turbulent path.

Kenya Airways,……the pride of Africa,risks becoming the shame of Africa ,unless stringent efforts to ensure that this does not happen are taken. Management ,must now quickly come up with a solid strategy on how to move the airline from losses to profit making to ensure that it doesn’t come crashing down.

That Kenya Airways which prides itself as…..The pride of Africa….is in doldrums didn’t augur well with the Kenyan,and,they didn’t fathom the story. It was just announced during the annual release of financial report that Kenya Airways company …..the much coveted airline has made a staggering loss of up to the tune of Shs.25.7 billion.

And,Kenyans were not left behind in commenting about the issue ,as they took to social media and other platforms to pour their outrage,comment and to offer their opinions.

According to X.N.Iraki,The pride of Africa…..Kenya Airways ,has been studied in business schools as a success story in privatisation and must not be left to go under despite it’s huge loss. United States President ,Barrack Obama,Iraki,recalls ,some time ago”ensured that General Motors didn’t die and it is today even selling cars to Kenya”. We must not celebrate failure ,as is our tradition .Kenya Airways must keep flying high and remain the pride of Africa,and,we must keep politics out of it ,noted Iraki.

Another anonymous commentator,noted that,some things do not add up and doesn’t make sense at all,and,more so,Kenya Airway’s mind boggling Kshs.25.7 b loss. “How can a company ,which only recently was the envy of many,make such a colossal loss?”.

These were varied mixed reactions and opinions of Kenyans ,while commenting on the issue.

While the management blames competition and a slump in tourism for the loss,analysts and investors are divided on what went wrong.However ,one thing is clear;attention should now focus on how the airline can regain it’s balance and be the true ….Pride of Africa.

During the unveiling of the financial report of the company where this staggering loss was disclosed ,the management didn’t fell short of seeking help from the government to help it emerge out of the doldrums. And ,it is worth noting that it wasn’t long time ago when the Kenya Airways was the envy of many,where it was posting net profits and you wonder what might have went wrong in that short period of time.

Poor management decisions,operational inefficiencies and failure to counter competition are likely to have caused the Kshs.25.7 b loss ,according to cited analysis.

Preliminary evidence gathered by a Senate select committee tasked to look into the airline’s operations has released strategic errors that led to the near collapse of Kenya’s flagship carrier after it’s loss figure grew more than 600 percent in one year. Also,the airline is surviving on huge debts.

“Prima facie evidence shows the airline faces major problems like poor investment decisions by management on the buying and leasing of aircrafts ,notes Senator,Prof.Nyong’o. The airline is also said to be involved in expensive and non-competitive ticketing ,which led to loss of passengers.

But,analysts,are,however,divided on possible bailout strategies for the cash strapped carrier.While some back a government bailout ,others propose the involvement of a different equity partner.

Standard Bank Investment analyst,Eric Musau,believes the airline is headed for collapse if no rescue plan is hatched quickly.He said that the airline risks losing all it’s assets to creditors in the event that no action is taken to save it.That means the airline ,which is already insolvent ,would sink immediately.

He further points that the government would have to relax it’s grip and give private investors a chance if it cannot provide sufficient funds to lift the carrier back on it’s feet.”We have no choice ,but,to save the airline .It is not easy to run this kind of business.”

Ashanti research analyst,Kamanda Morara,notes that any airline could survive if it’s debts are restructured ,unnecessary assets disposed and costs cut.He ,however,agrees that if creditors demand what the airline owes them,then Kenya Airways will have to wind up


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