Stockman blogs
Air Asia investors.................Have you considered?
stockmanmy
Publish date: Sun, 27 Nov 2016, 12:23 AM
stockmanmy
0 76
Trade at your own risk. I am here only to vomit out my feelings
An article that is causing the buzz amongst Fund Managers.
An article that is causing unwanted headaches to Tony Fernandez
An article that is causing selling pressure just when Tony thinks he has solved AirAsia's major problems
An article that comes after the excellent quarterly report that Tony expects to take his share to the next level.
An article that comes when Tony thinks all his creativity , all his genius has created a vast profitable airline empire out of nothing and fast becoming a Blue Chip amongst airlines.
An article whose timing could not be worse for Tony.
An article that proves the genius of Tony Fernandes.
Read all about it here................
https://www.bloomberg.com/gadfly/articles/2016-11-24/airasia-s-new-lease-of-life
an article that proves beyond any doubt that Tony Fenandes should be given the honor..........CEO of the Year.
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Discussions
1 person likes this. Showing 36 of 36 comments
the more you think about the problems faced by TF , the more you appreciate the genius of TF....His last two objectives....
to sell the leasing unit thus solving the Balance Sheet problem
to list a new holding company for all his Asean units to be a truly Asean airline.
None of these is possible until he can produce a truly efficient, profitable empire with a load factor of 90%....truly amazing.
2016-11-27 00:47
I don't know la, brother.
I don't have any.
I rather focus on export stocks than stocks that go down if ringgit in crisis.
2016-11-27 01:48
This article also raise the question what is in the item known as leasing income.................according to the author, it is more than what meets the eye....it is accounting profit and cash flow created out of financial engineering.
2016-11-27 02:16
Hehe.that is smart or not smart then? Anyway, they are selling assets , planes and leasing back. If rm4bil, or 4.50bil now, can pay down half of debts consider good liao.
2016-11-27 02:18
To be exact, it is expenses, but due to related party leasing, interpreted as income.
So when it sell all planes to leasing company their exppense mIght balloon!!!
2016-11-27 02:20
But I would think maybe deal said at certa8n expenses fixed for xx years. Then the expenses will be in control and they will transfer tht to customers. Now they said want tO venture new areas Like selling customers duty free things, help them exchange forex, earn commission there. Not a bad idea lah....
2016-11-27 02:22
The concluding sentence in the article is most telling................
if they sell the leasing company , they give up power. and incurring higher costs in future.
if they don't sell, they cannot solve its Balance Sheet problem and US$ borrowings.
2016-11-27 02:32
with the help of big data..................and TF natural genius for creating revenue, they are confident in continuous improvements in income stream and survive in future even without creating financial engineering.
the group has reached that stage already.
2016-11-27 02:37
Yes. It is a dilemma. But my guess on tony and gang plan is clear. Take money and cabut! Do pp first. Pair down debts? Pay special div. The rest? Good luck to your future! If plan goes well, we all earn, if not......
2016-11-27 02:49
Their venture so far succeed in thailand only. Hoping Philippines also. The Indonesia is tough mkt, India also. If they succeed in India, China, Taiwan and Japan, aLso some southeast Asia like Vietnam, Burma, then good....
2016-11-27 02:51
Sure support. TF is M'sian best salesman. RM weak mean more tourists will visit M'sia which benefits AA. Exporters-when Trump become US presidents many factories here will be closed and moved back to US. Many local exporters cannot export to US due to no TPP.
Posted by paperplane2016 > Nov 27, 2016 01:44 AM | Report Abuse
So bro. You support AirAsia?
2016-11-27 10:06
have you considered that the leasing income all these years is not really leasing income but is borrowings disguised as income?
read the article.
2016-11-27 11:05
If they bring their own shorties.. wait wait wait and wait some more for opportunity
2016-11-27 13:49
Stockmanny...in a single liner....r we game for this coming episode ??? or ....??? your views pls ..if possible...tq
2016-11-27 13:54
Stockmanmy, can you show the numbers where revenue from ticket sales doesn't cover operating costs? That's the point in the Bloomberg article. I see in Q3/16 revenue from ticket sales does cover, and produce an operating profit.
2016-11-27 15:21
Sorry, Bloomberg's right as usual. AA's ticket sales revenue does not cover operating costs.
2016-11-27 15:27
Bloomberg is not right
ticket sale should not be consider on stand alone basis. Ticket price is determined based on expected ancillary income. The reason it is low is because air Asia knows on average how much more they can squeeze out of ancillary income
Bloomberg is just telling half of the story, to confuse people
ronnietan
114 posts
Posted by ronnietan > Nov 27, 2016 03:27 PM | Report Abuse
Sorry, Bloomberg's right as usual. AA's ticket sales revenue does not cover operating costs.
2016-11-28 08:18
.
Aviation is capital intensive..... borrowing... goes without saying
It is just whether it is by way of loan or off balance sheet by way of operating lease
So... it is not surprising if Tony has operating leases from 3rd party lessors.... this can see from the operating lease expense
Then.... the next question is...
Where does the airplane in question come from??
The 3rd party lessor got it from airplanes ordered by Malindo?
The 3rd party lessor got it from airplanes ordered by itself?
The 3rd party lessor got it from airplanes ordered by AirAsia?
Must be airplanes ordered by AirAsia isnt it... got discount because AirAsia orders a lot.... powerful
And... so lie the contentious point raised by the article...
How many airplanes have AirAsia sold to 3rd party lessors??
How much were the profits made in selling the airplanes to these lessors?
The article says... A LOT A LOT.... till AirAsia is dependent on it... and this profit will be out of the window.. will follow AAC when it is sold....
.
2016-11-28 14:13
Ah Moi,
AirAsia now at tail of bull run. Nothing much left now.
BETTER BUY OIL PALM COUNTERS AS CPO CROSSED RM3,000 A TONNE
2016-11-28 15:09
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
stockmanmy
I would love to hear the response from TF on the accusations contained in the article.
2016-11-27 00:30