Trying to understand the KQ’ Loss of Ksh. 29B.
Let me travel to from JKIA to Hong Kong via Bangkok. 8764.49 km flight distance
The cost of my 1 way ticket is ksh. 47,876/-. Assuming that I am using Boeing 787–8, we will be 204 passengers on board. Since I have to pay for the seat and some snags for the 14h 20minutes journey, I will put everything to be 50,000/- and there about. Yes 50k. For the 234 of us, we will pay 11, 700, 000/- (Assuming up to 40 seats fly free).
I have to make some assumptions
1. For that single trip, the pilot and co-pilot are paid 500,000/-
2. The hostesses share the 700,000/=
3. Kulipa shimo for the plane to land 1,000,000/=
4. Fuel. The fuel consumption rate of this Boeing is 2,526 kg/h. So, for 14hrs, at maximum efficiency, it will have consumed 2,526 kg/h* 14= 35,364kgs of jet fuel. The value is hypothetical so we could put it at 40,000kgs. 1Kg of Jet A1 = approx 1.742 litres so that is 69680 litres. (I could go on and on to get the exact cost of fuel). But lets put it at 2,000,000/=
5. Cost of service before departure: 500,000/=
6. Miscellaneous 500,000/=
7. Total cost incurred by KQ: 5,200,000/=
Gross profit: 6,500,000.
=55.55% (From all the money collected per flight in all the over 50 destinations 55% comes as profits. Clean money. Hamugawi na mutu. Except, Maybe some 5% going to alliance flights.
How did KQ incur the loss:
Hypothetically: The pilot is allowed to fly with all the collected money. In our flight to Hong Kong, we will use Somali, India, Thailand, and Vietnam air spaces. It occurred that While were in somali Airspace, Alshabab demanded all the money from the pilot. He was left with nothing to give the Indians, Thais and Viets. However, they allowed us to pass for this day I was flying.
I think, If this occurred always, KQs management was forced to borrow money somewhere to bribe the Indians, Thais and Viets since Alshabaab always takes everything from the pilot. This also happens to all the other 50+ destinations.
This is how it ended up with Ksh. 29,000,000,000/- debt.
Worry no more. It also happens to many Matatu operators. When traveling from Nairobi to Eldy, You have to bribe those at Limuru, Naivasha, Gilgil and Nakuru. Since you are broke at this point, you have to ask friends to help you when you meet those in Salgaa, Molo, and Cheptiret.
This happens occasionally until you have no money to service your car or pay SACCO fees. You rush to your friend Afriexim bank to give you some loan. That is after you have sold some piece of land kick-start your Matatu business but it couldn’t help.
It is only a matter of time before someone you closely know (I know) buys your Matatu (KQ) and becomes successful overnight.
Halafu unarandaranda ukisema “The devil is a liar!”