However some of those did share the the fact and truth of AA. You need to study and collect more info on AA, then only you will know who is telling the truth and those are telling the lies.

I have joined this blog one months ago. Some of information flow here is really baseless and make no sense.

It is wise not to simply make your judgement based on what return here.

You may study and do your homework. Then make judgement based on data and facts.

l foresee a positive finance result on coming quarter but take no 100% guarantee of it.

If we look into detail of Forex loss, it is actually not the disaster as many thought of as the borrowed monies of AA is invested in buying aircraft. USD appreciating also mean the value of aircraft increase in term of Ringgit. It is kind of offset to each other. Some more AA can sell and lease back the aircraft in order to counter for Forex loss and reducing debt level.

The folk like us will ask, what can we do? ^_^

With the sell of 8 aircraft, the second quarter result will be enhanced.

AA is return:
http://centreforaviation.com/members/direct-news/airasia-double-digit-growth-in-operating-profit-and-profit-before-tax-227175

Dated back on May news. AA mandated three lessors for the sale and leaseback (“SLB”) of up to sixteen of our older aircraft which could potentially generate gross proceeds of approximately USD400 million and cash upfront of around USD60 million.

To date, we have closed 8 Sales and Leaseback transactions which will see a cash upfront of approximately USD30 million in the second quarter of the year. The provision on loss of disposal of RM38 million is already recorded in 1Q15 financials.”

Even after interest rate hike, let say it stabilized at about 3.75 exchange rate. We still can see huge forex loss here. TF plan the right thing to sell and lease back aircraft to counter rising debt due to MYR depreciation. Uncertainty is how this leasing model work, will it diluting the profit margin, we don't have clear picture on this moment. However TF is quite confident on this plan that in ten years time this will generate a net cash gain of USD2.5 billion for AA.

You may jump in conclusion too early. Whether you right or wrong, let keep an eye on coming quartet result.

I was thinking how AA to counter USD appreciation issue but AA have had counter measure in before ready.

USD appreciating will put AA finance in bad shape. I think AA foresees about this issue that why sell and leaseback plan is in place as counter measure.

AA expect to have a net cash gain of US$2.5 billion (S$3.38 billion) over that 10 years period.

10 years plan to sell and leaseback all its 120 aircraft. This year target 20 aircraft on sale. Wondering how many aircraft is sold thus far?

Sell and leaseback a good way to counter forex loss and to bring down the debt and finance cost.

AirAsia plans to undertake a sale and leaseback of up to 20 aircraft in an attempt to bring net gearing down to around 2 times by the end of the year from 2.47 times now. Any idea how may aircraft had been sold thus far?

Th truth and the fact will not be twisted by serpent. The righteousness will hold the truth and lasting forever. The serpent will be diminished to dust.

The humble man will be raised

The fool man always take proud in themselves.

The negative telling here is overdone, some of it is really no basis and make no sense. Let next quarter result telling the truth.

tena, that is the old story again. Any new negative news on AA?

AirAsia: To overtake MAS in international seat capacity come next month. Centre for Aviation (Capa) said MAS’s upcoming cuts will see the national carrier’s share of seats in the international routes slipping from around 27% to around 23% due to restructuring exercise. The two AirAsia branded carriers will account for 30% of international ASKs in September 2015, compared with 29% for MAS. Coupled with AirAsia affiliates based overseas with 3% international ASKs of 3% in the Malaysian market, this gives group a combined tally of about 34%. (Source: Digital Edge)

AMBUK, no one can influence you, you make your own judgement. I have different opinion than you.

Buying traction formed. It might shot up soon?

AA will able to ride through the storm if coming quarter result is good. If this happen all the concern raised by GMT will temporarily become history.

No idea, it can be long term bond with fixed interest rate.

In order to be able to sell, the coming quarter result performance is crucial to AAB & IAA.

AirAsia Bhd’s Indonesian unit plans to sell perpetual bonds to bolster its equity position by end-September.
http://www.themalaysianinsider.com/business/article/indonesia-airasia-plans-bond-sale-to-keep-operating-permit#sthash.X8VPOety.dpuf

The 1st quarter average USD to RM is 3.6204 and the 2nd quarter is 3.6576. The increment is just about 1%. This translate into lower forex loss in coming quarter.

Correct me if i'm wrong.

The forex loss is calculated based on % increase from 3 month average of USD to RM for 2nd quarter compare to previous 1st quarter. The increment in about 1% only. Therefore don't expect huge loss in forex for coming quarter. This assumption is made based on all forex loss in previous quarter is fully realised in previous quarter result.

Thanks rizerlee. My estimate foreign exchange lost on coming quarter is less than 60 million. This loss will be partially compensate by gain in lower jet fuel. Overall next quarter result is positive, my forecast the profit after tax is well above 100 million take into consideration of increased revenue.

Anyone can enlighten on AA hedging(fuel, foreign exchange) policy information?

rizerlee, For the last quarter, the Forward Foreign Exchange Contracts is hedged at US/RM 3.2357. l assume the same rate is used to hedge for the 2nd quarter, then it will be good news right.

But if the Forward Foreign Exchange Contractsis is hedged at US/RM at 3.2357, that will be the good news.

The concern brought up by rizerlee for fuel hedge and Forward Foreign Exchange Contracts is pointing to the right direction. Just wondering how these hedge being done for AA. Could anyone share about it?

dragonofdark, rather than just claim with selective information, it will be more convincing if you also providing the % of fuel cost involved in operating cost as the current oil price is about half the value of year ago.

aisa, AMBUK, sometimes l get bored due to you are repeating the old storyline in your posting. In the past almost all your post is demoting AA, l'm curious if you are promoting AA how is your storyline will be.

asia, AMBUK, both of your comment is really spice up my day but may be to dislike of others.

2.6 billion is donation. Then everything will back to normal.

All the positive news you also treat it as bad news, just wondering what kind of news you'll treat it positively. You have lost your sense due to fears in yourself.

AMBUK, lot of thing seems fear to you. Even AA is now at 3 cent, l don't think you dare to buy in. In event that AA surge to RM2 in future, you'll still talking about the fear and stoking fear in yourself.

The lauder the siinging, the more worried they get.

AA be another aax, it is just what 'asia' comment. Don't take it seriously as he is not the only one singing the same song here. The result on coming quarter will tell all the future trend of AA if not atleast for the short term. Even the result is good, be prepared there're still some of them singing the same song with unchanging rhythm. Just treat it as entertaintment and no harm to all of us right?

If the next quarter result is good, it will be as what TF told before if not then we know what happened.

Next quarter result is looked having more positive element than negative one.

Be truthful to what we say not simply to twist the fact for our own selfish gain.

Some stoking fears while other promoting the optimism with aim of achieving their objective of investment.