AFTER 7.6 BILLION KENYA SHILLINGS LOSS IS KQ NOW TECHNICALLY BANKRUPT – AGAIN
(Posted 30th April 2019)
The egoistic intent by Kenya Airways CEO Sebastian Mikosz to raid the cash reserves of the Kenya Airport Authority is once again made blatantly evident, after the airline he runs reported another massive loss, this time of 7.59 billion Kenya Shillings.
This, according to auditors Deloitte means, that the airline’s current liabilities exceed its current assets by KShs 101.540 million, suggesting technical bankruptcy.
Mikosz only a few weeks ago admitted that unless he can get his hands on the KAA cash would the future of the airline be dire and by his own words sooner or later reduce to the level of Jambojet – incidentally an airline making profits!
While KQ’s revenues in 2018 rose to over 114 billion Kenya Shillings have rising fuel cost, fleet cost and other balance sheet items dragged the financial results once again into the deep red.
The result belies assurances by the airline’s CEO and Chairman of better days ahead as they will have to own up to the latest losses with a ‘just not yet’ mitigative phrase, buying time with increasingly unsettled bank shareholders which converted debt into equity – after massive pressure from the Kenyan government – only to see the downhill trend continue.
As and when they will team up and demand fundamental change remains to be seen but being answerable to their own shareholders will it only be a matter of time before they either enforce change of direction or else risk being dragged into the maelstrom of Kenya Airways’ continued downturn.