Scoring Bids from Potential Strategic Partners

Bids from potential stategic partners were scored according to three different categories of characteristics:
  1. Most important characteristics
  2. Highly desirable characterics
  3. Useful characterics
For each characteristic, each bid was rated on scale from 1 to 5, with 5 being the highest score.  The rating for each characteristic was multipled by a weighting for that characteristic and summed to produce a total score for each of the characteric categories.  An over-all score was determined by multiply the total score for the first category by 5, multiplying the total score for the second category by 4, and multiply the total score for the third category by 3; and then summing these values.

The tables below show the characterics and their weightings.  You can enter rankings for each characteristic for two (competing bids).  Category totals and the over-all totals will automatically be calculated (given that doing so is within the technical capabilities of your browser).
 
 

Most Important Characteristics
Characteristic Weighting Bid 1 Bid 2
World-wide recognition as a high quality airline 5
Willingness to impart reputation to Kenya 5
Committed to growing Kenya Airways on a sound commercial basis 5
Interest in Kenya Airways based on solid, clearly presented
business objectives		 4
Possessed of financial resources 4
Willingness to commit investment capital to build the future of Kenya Airways 4
Possessed of and willing to share with Kenya Airways a first-class 
customer reservation system		 3
Operating a world-wide sales network, made accessible to Kenya Airways 4
Demonstrating an excellent safety record 3
Committed to the retention of Kenya Airways identity and name 5
Committed to the development of Kenyan managerial staff 4
Experienced with successful transfer of airline operating, financial, 
and business skills		 3
Based in a country acceptable politically to Kenya's Government and 
people		 5
Total Weighted Score for Most Important Characteristics 5


Highly Desireable Characteristics
Characteristic Weighting Bid 1 Bid 2
Current ownership in majority private hands 5
Business in good financial health, with a sound balance sheet
and no unusual liabilities		 5
Possessed of major purchasing power for capital equipment,
systems and stocks		 3
Willing to share purchasing power with Kenya Airways 3
Respectful of the aspirations of Kenyan shareholders 4
Owns a fleet of aircraft compatible and interchangeable
with that of Kenya Airways		 3
Operating on a network of routes complimentary to Kenya Airways 4
Offering customers an attractive frequent flyer program 2
Willing to share frequent flyer program with Kenya Airways 3
Total Weighted Score for Most Important Characteristics 4


Useful Characteristics
Characteristic Weighting Bid 1 Bid 2
Experienced with successful international business alliances 4
Based on a corporate and national culture, and language capabilities,
compatible with Kenya		 5
Linked to business interests other than airline operations
that could be advantageous to Kenya Airways		 2
Based on a business plan likely to cause only minimum disruption
to existing Kenya Airways staff		 4
Able to offer Kenya Airways slots at busy key airports 3
Complementarity with Kenya Airways of component overhaul
and other maintenance functions		 3
Total Weighted Score for Most Important Characteristics 3


Over-all Score
Bid 1 Bid 2
Total Weighted Score

Go to Kenya Airways: Case Study in Privatization

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