Adieu 5Y KYA
More pictures of the ill-fated aircraft
5Y-KYA, a 737-800, was leased aircraft from the Singapore Aircraft Leasing Enterprise (SALE) (now owned by the Bank of China). Why leased? At the airline’s 2005 AGM management said that, with their strong financial footing, KQ was now able to lease new aircraft which confers many advantages over buying new aircraft for a rapidly expanding airline. The lease deal was signed in September 2005
The first new 737-800 was delivered in October 2006 to KQ directly from Boeing, the manufacturer and replaced smaller 737’s on many of the airlines existing and new routes.
It was a larger aircraft with improved safety features. The aircraft (was) equipped with a Heads-Up Display (HUD) system that projects key navigational data directly in front of pilots, allowing for safer operation in difficult conditions such as inclement weather or problematic navigational terrain.
It is also no comfort to families and relatives of the passengers, but the tragedy could have been worse if the airline had used the usual, and larger, 767 aircraft that night.
Final word
Kenya Airways is expected to release its year-end results at the end of the month, and the 3rd quarter results showed strong growth in Asia, Eastern African and an overall 13% growth on (non-Kenyan) Africa routes.
The company should be unaffected by the loss in the long-term, nor should its share price. The leased aircraft will be immediately replaced and with proper & timely insurance response, careful PR management and investigation of the accident, the airline should pull through.
Bankelele, the share price has started acting up. It lost sh 8.50 in today’s trading. Are we talking about panic selling ama? If that’s the case, how do you remedy the situation?
why are you asking bankelele about where the share price will go. Do you think he has a special magic wand that can predict what will happen?
He, he, he. Bankelele can make mad cash pumping and dumping stock what with the number of people who religiously come here for stock tips…
are you anonymous fellows jealous? The dude has a point. I guess bankelele, does his homework no wonder his blog has endeared him to many. So quit the crap not everyone went to business school.
James,
I would advise keeping the shares, the flactuation because of this incident is temporary…KQ’s financial outlook is still good.
Bankele does his homework and has tangible backings to his posts.
If you own KQ, buy 25% more and wait for the stock to dance for a about six months. KQ is bound to do some vodoo in the coming few months just to regain composure. When it’s all done, dump all the newly aquired 25%. Based on your portfolio, that could be you feeder for this quater.
James: I am not suprised at the short term panic selling, but I expect it to hold steady as the story plays out.
3N: I have no KQ shares currently, but I would not sell if I had any. In fact I would buy more, if the price dipped significantly
boston broker: Agreed, KQ shares a good buy, but I would not sell to lock in a 25% gain
Banks:
I’m curious as to what your analysis is on KQ shares? How do you know if the price will go up or down? is it mere guess work on your part?
Bankelele is good but be careful. Last year in May he posted his holding(s) and there was Uchumi. I had just dumped 2,000 Uchumi shares. After finding Bankelele had Uchumi, i applied all my Kengen refund to Uchumi Shares which amounted to over 30,000 of them. 2 weeks later, Uchumi was bankrupt. Bankelele revealead he only held 500 Uchumi shares! Since that time, i read any blogs but never take any serious investment advice.
what prompted you to dump the uchumi shares?
Bankelele thanks for that link to those photos of KQ 5Y-KYA. I am always on that site (Airliners.net) and that is the first time I am seeing snaps of KQ from a spotter. I guess I have not been makini enough.
Kenya-Byte