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Overview
Financial Highlight
HeadlinesBusiness Background AirAsia Bhd provides air transportation throughout Asia. The airline operator focuses on delivering lower fares without a host of other amenities. It does not provide frequent-flyer miles or airport lounges, but looks to cater affordable transportation to all customers. In-flight meals and drinks are additional purchases available to customers. All short and long-haul flights are nonstop, and the company focuses on high frequency and high turnaround of flights. Operating segments are grouped by geographic regions. Revenue derived from Malaysia makes up the majority of revenue, but the company does hold material operations in several Asian regions.
  Mabel AirAsia’s Tony Fernandes wants Microsoft compensation for the CrowdStrike outage: ‘If I delay my flight, you would come after me for a refund’ The outage hit global airlines particularly hard, disrupting thousands of flights as staff scrambled to get systems back online. Some airlines, like US carrier Delta Air Lines, are still struggling... Haha Our Captain so steady... More goodies from Microsoft soon...hihihi 26/07/2024 10:35 PM  Anw412 If u're worried about the lease payments then the lessor must be shitting in their pants rite now.. But somehow they keep giving additional new and used plane to Air Asia & X to fly.. Maybe capacity expansion is the best way for them to recover whatever owed to them. 26/07/2024 11:06 PM StartOfTheBull I believe everyone knows the risk involved in investment, including in Capital A. When did SSLee post any positive comments about Capital A? As far as I know, none. 26/07/2024 11:18 PM TradingFUN @SS Lee. I already studied the financial report and restructuring plan in details. Only you are the one didn't know what's happening and kept on asking dump questions. You thought you have critical thinking ? You like those no knowledge that just want to show yourself like an expert. The mote you ask dump questions , it show how brainless you were. 27/07/2024 5:28 AM TradingFUN I think you not even know what is lease liability and how it was pat. Just keep on thrown your dump question on this. You don't feel shame one ? 27/07/2024 5:29 AM  Sslee Am I right to say the going concern of capA is now at the mercy/pleasure of lessors? What hope does capA has when lessors are squessing Stony' ball for all its worth/juice? 27/07/2024 8:15 AM Sslee By the.way auditor has answered below on lease liabilities: Question 5: External Auditor what it means by included in lease liabilities are lease rental payables amounting to approximately RM 2,810 million? Answer: This pertains to the outstanding amounts of lease rental due and payable owing to the lessors that remained unsettled as at 31 December 2023 Question 9: External Auditor, from Sales in advance: RM 2,025,298,000, Proceeds from borrowings: RM 1,273,030,000 yet the Group only managed payment of lease liabilities: RM 2,045,816,000 which is far off the amount of current lease liabilities reported at FYE 2022 RM 4,340,844,000. What happens to the unpaid FYE 2022 current lease liabilities? Answer: For the due and payable lease payments for FY2022 and prior year, the amount is recorded within trade and other payables in FY2023 27/07/2024 8:18 AM Sslee The Group currently has approximately 30 lessors. As part of our restructuring exercise, AirAsia successfully restructured USD688 million of arrears by extending leases to 18 years. With this extension, AirAsia had received an average lease reduction of 9%. Lessors sure love capA when planes grounded for almost more than 2 years lessors still get their lease payment with only 9% haircut unlike AAX big haircut of paying 0.5 sen for every Ringgit owed. 27/07/2024 8:37 AM Anw412 See they all recorded and nothing to hide.. If they want to do (ball squessing Tony's) then why wait and wait and wait and give more to him.. There must be something that they see and know that you dont, rite? 27/07/2024 8:38 AM Sslee The question why AAX can ball squessing lessors but capA can't and going to squeeze dry by lessors? 27/07/2024 8:50 AM Anw412 Because CapA's ball are so much bigger and got a lot of juice they dont need too squeeze it but just wait to get what they want. 27/07/2024 9:04 AM Sslee Anw412 is right whatever lessors want they will get it. The Revenue Bond program entails the conversion of outstanding lease payments of USD240 million (approximately RM1.1 billion) into bond (Tranche 1) Question: External Auditors if FYE 2022 Management cash flow forecast is far off the mark as per actual achieved then as at 31 December 2023, the group current liabilities exceed its current assets by RM12,699 million. Are Auditors satisfied and confident with management's cash flow forecast for year 2024 that the group will not default on the net current liabilities of RM12,699 million? Answer: We have assessed the reasonableness of the cash flow projection provided by the management (Note 2.1). The going concern of the Group is dependent on the following: 1. Successful implementation of a Revenue Bond program; and 2. Continuous support from Group's lessors 27/07/2024 9:26 AM Anw412 Seems both 1 & 2 is on track.. So there is chance of succesful turnaround. Thats the risk i'm willing to take.. 27/07/2024 10:24 AM AnthonyAng666 Early disclosure 😃 https://newsroom.airasia.com/news/capital-a-2q2024-operating-results#gsc.tab=0 27/07/2024 11:59 AM paulthesotong Lower Oil Price, USD, n Cut in Interest Rate, Wishing Well for Airlines. 27/07/2024 4:30 PM Pandu1 KUALA LUMPUR (July 26): AirAsia X Bhd (KL:AAX) said on Friday it will be acquiring Capital A Bhd's (KL:CAPITALA) aviation business directly, and not via a new company (NewCo) under an internal reorganisation proposed previously, to expedite the takeover. “The decision to abort the proposed internal reorganisation and to terminate the internal reorganisation agreement was arrived at after weighing potential benefits of the proposed internal reorganisation against time required for the implementation of the proposed internal reorganisation and more critically, the importance of an expedient completion of the proposed acquisitions to the AAX Group,” AAX said in a bourse filing. On April 25, AAX announced that it would be taking over Capital A’s aviation business — under AirAsia Bhd (AAB) and AirAsia Aviation Group Ltd (AAAGL) — through an internal reorganisation involving the setting up of a NewCo that would take over AAX's listing status. The aviation group expected the proposals to be completed by the fourth quarter of 2024. AAX had proposed to acquire the aviation business for RM6.8 billion. It planned to issue new shares worth RM3 billion — 2.31 billion shares at RM1.30 each — to acquire AAAGL. As for AAB, AAX proposed to acquire it for RM3.8 billion, to be satisfied by assuming RM3.8 billion of some RM3.83 billion worth of debt that Capital A owed AAB. The deal values the entire equity interest in AAAGL at between RM2.7 billion and RM3.5 billion. AAAGL owns Thai AirAsia, Philippines AirAsia, Indonesia AirAsia and AirAsia Cambodia. As for AAB, which operates AirAsia Malaysia, the deal values its equity interest at between RM3.48 billion and RM4.37 billion. In its filing on Friday, the medium-haul low-cost carrier said the group and NewCo have mutually terminated the internal reorganisation agreement. AAX will now replace NewCo under the deal. AAX also said it now plans to grant Singapore-based Garynma Investments Pte Ltd, the vehicle of former AAX director Datuk Lim Kian Onn, the rights to subscribe to 12% of AAX's enlarged share base, immediately upon completion of the acquisitions. This is a reduction from the 15% proposed previously. Shares in AAX ended nine sen or 6.16% higher at RM1.55 on Friday, valuing the group at RM692.96 million. Meanwhile, Capital A closed three sen or 3.70% higher at 84 sen, giving the group a market capitalisation of RM3.62 billion. Read also: AirAsia X to buy Capital A's aviation business for RM6.8b via share and debt deal Edited ByS Kanagaraju Most Read Just In Britain is 'broke and broken', new government declares Malaysia making great strides to reclaim ‘Asian Tiger’ status — Amir Hamzah Aria Putera Ismail to step down as SME Bank CEO Govt looking to plug leakage of subsidised diesel, RON95 petrol in Sabah, Sarawak — Armizan Abang Jo gives Petronas three months to finalise talks on Sarawak gas distribution Level 3, Menara KLK, 1 Jalan PJU 7/6, Mutiara Damansara, 47810 Petaling Jaya, Selangor, Malaysia (+603) 7721 8000 info@bizedge.com Home Contact us Sitemap About us Advertise with us Terms & Conditions Join us Subscription PDPA Newsletter Digital Editions Copyright © 1999-2023 The Edge Communications Sdn. Bhd. 199301012242 (266980-X). All rights reserved Text Size 28/07/2024 5:29 PM Sslee AAAGL did not owns Thai AirAsia and Indonesia AirAsia. Question: Group effective holding 40.71% AAV listed in Thailand and effective holding 47.43% IAA listed in Indonesia. Both listedentities are governed by respective countries on listing andcapital requirement and Corporate Governance. AAV BOD had carried out a proper capital-raising andrestructuring plan that put Thai AirAsia on the right footing forgrowth. BOD, any deadline for Indonesia listing IAA for a proper capital-raising and restructuring in order to reset its balance sheet and maintain its listing status? Answer:Company has formulated strategic plans to address the financial and operational requirements of Indonesia AirAsia. However, at this juncture, we must await the completion of the aviation business disposal before we can proceed with any further actions. 28/07/2024 9:26 PM Alex_Kho https://klse.i3investor.com/web/blog/detail/financeforall/2024-07-29-story-h-155951727-Capital_A_Ready_for_Takeoff_Why_Now_is_the_Time_to_Invest @sslee is going to bash me. lol. i think the timing is good now. recovery of passanger, financials improving, restucturing plans in place and high chance of exiting PN17 status. Assuming they exit PN17 in the next couple of months (if not weeks) i'm hoping to see Cap A to go back to pre-covid price level @ 1.60ish. first target 1.20 29/07/2024 12:15 PM Sslee Capital A’s financial performance is bouncing back: Operating Cash Flow: In Q1 2024, the company generated MYR 789.22 million, showing strong recovery from the pandemic downturn. The Operating Cash Flow: In Q1 2024 MYR 789.22 million. So just enough to pay repayment of lease liabilities RM(726.42) million under cash flow from financing activities. As at 31/3/2024 the current lease liabilities is RM 5,985,234,000 So Q2 what will be the repayment of lease liabilities RM XXX.XXX million under cash flow from financing activities? 29/07/2024 1:56 PM Sslee The question will there be too many LCC airlines with capacity expansion chasing the same customers? And how capA with billion in current lease liabilities RM 5,985,234,000 and current trade & other payables RM 4,023,726,000 compete with other LCC? 29/07/2024 9:19 PM Mabel Particulars of substantial Securities Holder Name TAN SRI ANTHONY FRANCIS FERNANDES Nationality/Country of incorporation Malaysia Descriptions (Class) Ordinary Share Details of changes No Date of change No of securities Type of Transaction Nature of Interest 1 07 Jun 2024 400,000 Acquired Direct Interest Wah Uncle Tony bought 400,000 Capital A Shares That show confidence 29/07/2024 10:59 PM  raymondroy @Sslee ..... i believe ur an ex accountant or current accountant? 1) You think too much like an accountant, and they say accountant does make a good businessman and vice versa, bekos accountants think too much about risks (as they shd) but one must understand only with risk comes rewards..... 2) if one does not like risk, then better to go invest in FD, but that beings aid risk has to be taken at calculated levels and needs monitoring and adjustments..... and 3) thats what business is all about .... even the lessors of AA are risk takers as well, they lend to AA in return of fulus, they could easily to Petronas Carigali to do their business but they still come to AA did you ask yourself why? 4) Well.... AA falls in a higher risk category and with higher risk comes higher returns ...... doesnt all these makes sense? of at least some of it? 5) ... yeah Balian - smart move, real professional... LOL :-) happy hunting and cheers 30/07/2024 1:27 PM Alex_Kho @sslee, thanks for the feedback. In my view, Capital A doesn’t have a direct comparison within Malaysia, but when we look regionally, airlines like Lion Air, Scoot, and Cebu Pacific all have significant levels of lease liabilities. It's worth noting that the airline industry is capital-intensive, and substantial lease liabilities are common among major players in the region. For example, Lion Air, Scoot, and Cebu Pacific have lease liabilities that are reflective of their fleet sizes and operational scales. Your efforts to ensure good governance and transparency at Capital A are crucial. They help keep the company accountable and legitimate, which is essential for its long-term sustainability. However, my primary interest is to make capital gains from this stock. 30/07/2024 1:59 PM Sslee I am chemical engineer by profession. I took a short course accounting for non accountant to better my understanding on financial accounting. I am eager to learn and jave no hestitation to ask and seek clarification if answers given is not clear to me. Question 23: External Auditor, by acquiring the 60% PAA how many billions net liabilities was transferred from PAA to the Group and how many billion negative equity from Non-controlling interest was transferred to shareholders’ equity? Answer: A total of approximately RM 2.3 billion has been transferred as a result of the acquisition Question 25: Referring below link: PART D – ACQUISITIONS AND DISPOSALS https://www.bursamalaysia.com/sites/5bb54be15f36ca0af339077a/content_entry5ce3b50239fba2627b2864be/5ce3b5c439fba264f32eb401/files/MAIN_Chap10_COI_Ors__26May2023_.pdf?1685095256 External Auditor is acquisition of 60% PAA valuation percentage ratio below 5%, above 5% but below 25% or above 25% as defined by above Bursa Chapter 10: Transactions? Answer: The valuation percentage ratio falls within the range of 2.24%, this aligns with the criteria outlined in Chapter 10: Transactions of the Bursa Malaysia Listing Requirements Follow up clarification: The Group paid USD16 million to acquire 60% PAA from JV local partner F&S Holdings, Inc and resulted in a total of approximately RM 2.3 billion net liabilities was transferred from PAA to the Group/negative equity from Non-controlling interest was transferred to shareholders’ equity and yet the transaction valuation percentage ratio falls within the range of 2.24%. External Auditor please kindly show the calculation how you get this 2.24% valuation ratio? Question 21: BOD, previously the Group sold India AA to local JV partner and allowed Japan AA local JV partner to wind up Japan AA. What are the reasons the Group paid USD16 million to acquire 60% PAA (Red flagged by external auditor Isla Lipana on “material uncertainty” exists on its ability to continue as a going concern) from JV local partner F&S Holdings, Inc? Answer: The acquisition of a majority stake in Philippines AirAsia aligns with our Group's strategic focus on the Asean market, where the Philippines has long been recognised as one of our core and strategic market that holds significant growth potential within the region. Despite the challenges highlighted by the external auditor, we firmly believe in the long-term viability of the Philippine aviation industry. Rest assured, the decision to acquire PAA was made after careful consideration and thorough due diligence, taking into account both the opportunities and risks associated with the investment. Additionally, post-acquisition, we have gained a 35% market share in the Philippines market. We are confident that the acquisition of PAA will continue to contribute positively to our Group's long-term growth and value creation for our shareholders. Follow up clarification RAMON ROYANDOYAN, Nikkei staff writer July 3, 2024 09:35 JST MANILA -- Philippine budget airline Cebu Pacific is set to buy up to 152 Airbus jets for $24 billion to expand its fleet and meet recovering demand for flights. BOD, how is PAA going to compete with the financially stronger and fast expanding Philippine budget airline Cebu Pacific and turnaround PAA? I drop in a question on the online query box and that question answer was not in the AGM minutes: Will BOD kindly answer that question: From Aetherium Acquisition Corp Form 10Q: As of March 31 2024, there were 528,500 shares of class A common stock issued and outstanding, excluding 2,991,003 shares subject to redemption. On May11, 2021, the sponsor purchased 2,875,000 founder shares (Class B common stock issued and outstanding) for an aggregate purchase price of USD 25,000. Question: With such low numbers of class A and B shares issued and outstanding, is the merger with CAPI still feasible and possible? 30/07/2024 2:38 PM raymondroy @Alex_Kho .... that was my guess too ... financial auditor :-) and @Sslee .... so u have like double degree now, chemical engineer and also accountant (accouting for non-accountants).... and I am happy for you, and based on the questions you ask.... i can easily say your proficiency is higher than most of the accountants (corporate finance accountants) out there.... as you seem to also have a fairly good understanding of IFRS (as you speak about lease etc).... im hoping you interpret some of these questions you have raised to the Board and their replies from a corporate finance perspective (leveling risks vs returns).... which will help investors here make informed decisions :-) happy hunting 30/07/2024 2:50 PM The_JQuestion ure a chemical guy not even fuel expert , USD expert or aviation expert how many LCC in malaysia ? ONE. who is the biggest airline in malaysia ? Airasia and Airasia X. Only listed public aviation company in malaysia ? YES. whos it their CEO? tan sri tony fernandes , legend that can turn around two PN 17 companies and bring it to profitability , admired all around the world !!! only 0ne and only !! 30/07/2024 3:43 PM  Balian de Ibelin I am just a guy not a chemical guy but very obviously the Dog ate your Homework. 😂 [ I drop in a question on the online query box and that question answer was not in the AGM minutes: Will BOD kindly answer that question: ] 30/07/2024 5:04 PM Sslee Is he trying to say a fuel expert , USD expert or aviation expert will know exactly what will be the fuel price, USD exchange rate, passangers carried trending for the next 1 to 5 years? If such a guy exist he much be worth trillion. 30/07/2024 7:19 PM Sslee Stony sold AA India to JV partner, allowed AA Japan JV partner to wind up AA Japan and rescue AA Philippine by bought over 60% JV partner shares. He forced AAX's creditors included flight canceled customers to accept payment of 0.1 sen for every Ringgit owed, capital reduction and 10 to 1 share consolidation. He is about to bankrupt AAX by transfering AAAGL and AAB with total borrowing and lease liabilities amounting to RM 23,271,794,000 to AAX in the name of business turn around and getting CapA out of PN17. May god blessed AAX and capA. 30/07/2024 7:34 PM Balian de Ibelin I am just a Guy. the Ryanair Guy says numbers are there but not value. blame Zoom and Team for business. mostly low value tourists make up the numbers as Bucket List after covid scare. I believe wat the Ryanair Guy says applies to the whole world as well. Good Luck to AAX 😁 30/07/2024 8:15 PM BLee “If such a guy exist he much be worth trillion…He is about to bankrupt AAX by transfering AAAGL and AAB with total borrowing and lease liabilities amounting to RM 23,271,794,000 to AAX in the name of business turn around and getting CapA out of PN17. May god blessed AAX and capA.” He is holding Four Ace up his sleeve; i.e. clubs (♣), diamonds (♦), hearts (♥) and spades (♠). AAAA, not just Air Asia?? Something for Nothing!! 30/07/2024 8:19 PM The_JQuestion experts that dont know depreciating USD and Crude oil Drop.. Nobody expected it and aviation stocks are now the new hot cakes. Market is slow to react but dont be catching up when its too late :) Indeed, hasting the process definitely has some ace up his sleeve, TRUST TONY . We will FLY , not everyone meant to fly anyways ! balian and ss should try subang flight ... or they love traveling far to take their flight. again is their choice .. degil mcm biasa rasa intenational 30/07/2024 11:28 PM BLee Trust is NOT a Choice. I have to Trust the Pilot when I am up in the AIR..the only my involvement with AA; just given my thought for this interesting discussion. This could be one of his ‘Ace’, amending TnC (shifting goal post??): “Item 3.1(ix): the approval of the shareholders of AAX being obtained at a court convened meeting for the AAX Proposed Internal Reorganisation;” Amended to “Item 3.1(ix) shall be removed in its entirety.” “3.1(x)(a): MAVCOM with regards to the proposed change in shareholding of AAX;” Amended to “Item 3.1(x)(a) shall be removed in its entirety.” Source: https://www.klsescreener.com/v2/announcements/view/7439013 I have read thousands of bidding/Proposal dossiers, luckily I don't need to understand these Amendments. Will follow the next exciting Ace ‘move’; Happy Trading and TradeAtYourOwnRisk 31/07/2024 8:51 AM Alex_Kho I have made a analysis of Capital A's liabilities and growth, comparing them with other major low-cost carriers in Southeast Asia. My findings indicate that despite Capital A's substantial liabilities, the company's impressive growth and strategic fleet expansion position it well against competitors like Singapore Airlines Group, VietJet Air, and Cebu Pacific. The lower liability per aircraft suggests efficient financial management, and if Capital A exits PN17, it is poised to return to pre-COVID levels. I invite you to review my analysis and appriciate any feedback. https://bit.ly/3SrAUv5 For the rest of us, im holding it until 1.60 (pre-covid). Happy watching your money grow :D 01/08/2024 12:48 AM Sslee Please compare what are their total net current liabilities and total net assets/liabilities or total equity? And know why capA is PN17 company? 01/08/2024 7:46 AM Alex_Kho Appreciating your financial queries on PN17, could we also ponder on an airline untouched by COVID-19's global impact? 01/08/2024 11:37 AM Balian de Ibelin Just for comparison purposes to see the effects of bankruptcy protocol methods. Using the Reverse Ryanair Yield Control Curve had never made any money for the following businesses:- Food Toys Telecommunication eg handphones Computers Tourism Musang King Durians Fashion apparels. <= Many bankrupt using Reverse Ryanair Yield Control Curve. including but not limited to:- licensed prsotitution in Amsterdam and Bangladesh. 🤣 You already have the most famous example Malaysia Airlines now making RM Billions after using Ryanair Yield Control Curve. Besides Malaysia Airlines example, international companies using Ryanair Yield Control Curve Methodology includes but not limited to Apple Iphones, Samsung, Tesla, Hewlett Packard computers, Acer, Nike, Adidas, Puma, Speedo, Hilton, Marriott, Holiday Inn, Harvey Norman, Popular Books, Jaya Jusco, Village Grocer etc etc 01/08/2024 12:08 PM  |
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