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Investing In African Airlines, Like Kenya Airways  
User currently offlineanyong From United States of America, joined Jul 2011, 57 posts, RR: 0
Posted (2 years 9 months 1 week 3 days 5 hours ago) and read 2509 times:

I recently saw I video on CNN profiling Titus Naikumi, CEO of Kenya Airways. I have always maintained that most legitimate investments into Africa will eventually pay off. I feel as if the same should be said for KQ. Are they listed on any exchange? If not, is there any way to directly invest into KQ?

Furthermore, I think the same could be said for ET and possibly SA.
http://edition.cnn.com/2011/BUSINESS...ceo.interview/index.html?hpt=hp_c2

9 replies: All unread, jump to last
 
User currently offlineNorthstarBoy From United States of America, joined Jun 2005, 1812 posts, RR: 0
Reply 1, posted (2 years 9 months 1 week 3 days 1 hour ago) and read 2292 times:
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According to Wikipedia, some shares of KQ are traded on the Nairobi Stock Exchange and also the Dar Es Salaam stock exchange. Again, according to Wikipedia, klm owns 26 percent, the Kenyan government 23 percent and the other 51 percent of the airline's shares are publicly traded. Theoretically it should be possible to buy shares in KQ by contacting a brokerage house with access to the Nairobi Stock Exchange. If you have a broker that's something you can ask them to look into.

It seems like KQ has been a real success story over the past twenty or so years, going from a rag tag mostly regional airline with a fleet of 737s, 757s, A310s and Fokker 50s to the well respected modern airline they are today with a fleet of new 737s, 777s, and 767-300s.

Good luck in your endeavor to invest in KQ.



Why are people so against low yields?! If lower yields means more people can travel abroad, i'm all for it
User currently offlineanyong From United States of America, joined Jul 2011, 57 posts, RR: 0
Reply 2, posted (2 years 9 months 1 week 2 days 16 hours ago) and read 2077 times:

I think KQ's outlook is very encouraging. I don't know much about ET, but I believe they are about to join Star Alliance? I do think Africa is big enough geographically to hold 2 major airlines, but is it economically viable? Maybe in time, but for now I have no idea. Any ideas?

User currently offlinekiwiandrew From New Zealand, joined Jun 2005, 8492 posts, RR: 14
Reply 3, posted (2 years 9 months 1 week 2 days 16 hours ago) and read 2057 times:
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Quoting anyong (Reply 2):
I think KQ's outlook is very encouraging. I don't know much about ET, but I believe they are about to join Star Alliance? I do think Africa is big enough geographically to hold 2 major airlines, but is it economically viable?

Even allowing for the poverty levels I think a continent of 1 billion people ( especially a resource rich continent) can sustain several airlines. I am not sure what you mean by 2 airlines, are you forgetting MS and SA as well as ET and KQ.



Moderation in all things ... including moderation ;-)
User currently offlineanyong From United States of America, joined Jul 2011, 57 posts, RR: 0
Reply 4, posted (2 years 9 months 1 week 2 days 15 hours ago) and read 2033 times:

Quoting kiwiandrew (Reply 3):
Even allowing for the poverty levels I think a continent of 1 billion people ( especially a resource rich continent) can sustain several airlines. I am not sure what you mean by 2 airlines, are you forgetting MS and SA as well as ET and KQ.

I think it is important to note MS and SA, but I feel as if ET and KQ have better locations at ADD and JMO to serve as Africa's central hubs. I might be off line but I think MS may focus more on the Middle East as well as Africa and they may be subject to fierce competition from airlines such as EK and QR.

With that being said, does anyone know the current state of TU? Can TU grow to what, perhaps, MS is today...


User currently offlineETinCaribe From Ethiopia, joined Dec 2009, 717 posts, RR: 0
Reply 5, posted (2 years 9 months 1 week 2 days 9 hours ago) and read 1890 times:

In East Africa, you can only invest in KQ, using a broker that trades on the Nairobi bourse. Kestrel Capital is one example: http://www.kestrelcapital.com/ The total market cap of the NSE is $15billion so not a rather small exchange. Here is the KQ stock performance over time: http://www.bloomberg.com/apps/quote?ticker=KNAL:KN#chart

For ET, it is 100% owned by the government so no investment opportunity there.

IMHO, both of these carriers are winners and a good long term investment.


User currently offlinebreaker1011 From United States of America, joined Nov 2007, 938 posts, RR: 2
Reply 6, posted (2 years 9 months 1 week 2 days 9 hours ago) and read 1889 times:

I'm glad air transport stocks are worth the risk somewhere on the planet. To loosely quote a former US airline executive, the fastest way to $1MM in a US airline stock is to invest $5MM.


Life's tough. It's even tougher if you're stupid. J. Wayne
User currently offlineanyong From United States of America, joined Jul 2011, 57 posts, RR: 0
Reply 7, posted (2 years 9 months 1 week 2 days 7 hours ago) and read 1829 times:

Quoting ETinCaribe (Reply 5):
In East Africa, you can only invest in KQ, using a broker that trades on the Nairobi bourse. Kestrel Capital is one example: http://www.kestrelcapital.com/ The total market cap of the NSE is $15billion so not a rather small exchange. Here is the KQ stock performance over time: http://www.bloomberg.com/apps/quote?ticker=KNAL:KN#chart

For ET, it is 100% owned by the government so no investment opportunity there.

IMHO, both of these carriers are winners and a good long term investment.

Thank you so much for the help! I will look into the Nairobi Stock Exchange. I see that the stock is worth about 35 Kenya Schillings (~$0.37USD) per share in the NSE and it is about 1,000 Tanzania Schillings (~$0.70 USD) in the Dar Es Salaam Stock Exchange. I have heard speculation that these two exchanges are trying to consolidate.
Now, if this happens, isn't it a good thing that one could solely invest into the NSE?

Also, I know KQ was 100% owned by the government 15 years or so ago. Does ET have any reason to follow suit in the future?


User currently offlineusflyer msp From United States of America, joined May 2000, 2026 posts, RR: 0
Reply 8, posted (2 years 9 months 1 week 1 day 12 hours ago) and read 1618 times:

Quoting anyong (Reply 7):

Also, I know KQ was 100% owned by the government 15 years or so ago. Does ET have any reason to follow suit in the future?

I doubt you will see ET privatize anytime soon. The government of Ethiopia has hardcore Marxist/Socialist tendencies and ET is the only company of any international significance based in the country. It is a cash cow for the government.


User currently offlineanyong From United States of America, joined Jul 2011, 57 posts, RR: 0
Reply 9, posted (2 years 9 months 1 week 1 day 7 hours ago) and read 1541 times:

Quoting usflyer msp (Reply 8):
It is a cash cow for the government.

With that being said, I believe that is good for KQs future, given that when both ET and KQ are exanding to become Africa's Premier Airline, the publicly traded KQ will have a significant amount of purchasing power over ET--ultimately driving KQ stocks higher and higher. Am I off line here?


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