Limited downside for ringgit?

The reverse of RM depreciation will come soon?

http://www.thestar.com.my/Business/Business-News/2015/10/03/Limited-downside-for-ringgit/?style=biz

The worst may be over for Malaysia’s debt markets

http://www.thestar.com.my/Business/Business-News/2015/10/03/The-worst-may-be-over-for-Malaysias-debt-markets/?style=biz

Ringgit tipping point coming soon?

http://www.thestar.com.my/Business/Business-News/2015/10/03/Ringgit-tipping-point/?style=biz

My thought the plan to meeting positive equity requirement:

Merger--> looking for 3rd party subscription of 51% PCS.

Merger is temporary solution as after merger , given the size of iAA is much bigger than iAAX, the combined equity remains a negative figure. There's some buffer time before IAAX reaching one year of operation where by its account required to be formally audited. IAAX can utilize this buffer period to seek for 3rd party subcription of remaining 51%PCS. Finally it is resolved without issue.

But if 3rd party subscription of remainig 51% PCS managed to pull in timely, merger is seemed unnecessary.

IAA is relatively much bigger than IAAX. After merger, the holding interest of AA in new IAAX entity will not much reduced.

m'roi, you are observance.

I believe they have plan in earlier. No issue finally. Back up plan is always in place. Plan A fail then go for plan B

Finally IAA equity issue will be resolved amicably.

If merger occur, 3rd party subscription on remaining 51% of PCS becoming not crucial.

If no merger, subscription on remaining 51% of PCS becoming crucial in order to turn equity into positive.

Back up plan indeed??

It is paranoia in their assumption.

One of the reason why GMT report have had making AA stock slump to such low as of today is GMT managed to highlight the weakness of AA by doubting & questioning whether AA is able to recover its receivables from associate PAA & IAA when both continuously making loss. When uncertainty associates with risk is brought to big picture and blown out of proportion, the consequence is investor got terrified, relentless selling is then ensued. The selling pressure accelerated with the join of short seller. Within few month times, we have witnessed the price of AA being crushed from its peak of RM2++ to low of 1.3++ before it furthering downward to lowest of 78 cent.

How likelihood PAA & IAA will close which will kick AA into huge impairment loss from unrecoverable receivables?

Will PAA & IAA unable to turn around in near future? Is assumption of DBS alliance 100% to happen? How likely this to happen?

DBS alliance target price 1.05 is not new, it is actually unchanged from their last target price months ago.

DBS Alliance made the worst assumption in their target price that AA was unable to recover their receivables from associate IAA & PAA as both are continuously making loss and unable to turnaround. Thus impairment loss is provided in their case. This might be overdo in the fact that there're solid signs PAA is in the path of recovery which possible to turnaround or at least breakeven in 2016 to pave the way for their 1st IPO in 2016. For IAA, more leads on coming quarter result is required before we can of sure that they are on the path to turn to profit/break even in 2016.

PB, HLB, RHB, TA, Maybank set the AA target price base on what currently is realized and happened in the correspondence financial year accordance to accounting practice. Those impairment or item that has yet to happen will not be reflected in financial year. This is the norm practice adopted in accounting.

AA curent price RM1.25.

RHB IB:

only MYR624m(IDR 2058) has been hit on the balance sheet so far due to the Perpetual Bond. The RNAV is well above RM1.85.

The market response to perpetual bond is seemed neutral. The recognition of loss from associate IAA is not the new thing at all as those losses is transparent to all as it had been returned in AA finance result all the while. Those hoping that the recognition of this loss will cause panic selling will only proved futile.

IT is a good signs that in SEPT wellington is still a net buyer.

The bull or the bear of AA is very much dependent on foreign fund. If support from Wellington is remains consistent through out the year, then AA should able to rise up when the performance improved.

Way used to reduce negative equity of IAA.

The exercise involves AirAsia converting part of the existing amount due from IAA of IDR2.06 trillion as of June 30, 2015 into the subscription of the latter's perpetual capital securities.

However, the subscription will reduce AirAsia's pre-tax profit for FY15 by approximately RM474.2 million as at June 30, 2015, as a result of the recognition of prior year losses of IAA.

IAA negative equity is resolved, definitely it is good news. Wellington still buy in, a positive signs.

Those loss is not new thing. GMT has had emphasised on those loss in before.

Issued perpetual bond: IDR4200 bil Vs negative equity: IDR 3181 bil

However IAA previous year losses will be recognised in AA 2015 finance tesult.

I think the negative equity of IAA resolved.

IAA issue perpetual bond, not merging with IAAX as what indonesia news reported.

Wellington trading too. Buy low sell high. The point is they still see the value of AA by buy in when AA trending downward.

Let see what's the comment from IB later..

Domestic competition is stiff with low margin. Medium to long haul route is less competitive and with higher margin. After merger, route rationalization will bring better yield.

It will create synergy after merger.

IAA will no longer exist after merger.

Jakarta - Maskapai penerbangan Indonesia AirAsia akan mengakhiri operasinya di Indonesia karena digabungkan (merger) dengan Indonesia AirAsia X. Direktur Jenderal Perhubungan Udara Kementerian Perhubungan, Suprasetyo, mengatakan merger ini dilakukan untuk membuat kinerja keuangan Indonesia AirAsia yang sempat negatif menjadi positif.

Menurut Suprasetyo, merger itu untuk menyelamatkan Indonesia AirAsia dari ancaman pencabutan izin operasional. Sebab, dengan bergabung bersama AirAsia X, ekuitas Indonesia AirAsia tidak jadi negatif. “Indonesia AirAsia X ekuitasnya tidak negatif, karena belum diaudit dan belum setahun beroperasi," ujarnya, Rabu 30 September 2015.

Dengan demikian, kata Suprasetyo, pasca merger tidak ada lagi Indonesia AirAsia. Semua operasional AirAsia di Indonesia berada di bawah payung Indonesia AirAsia X, yang melayani penerbangan jarak menengah dan jauh . Untuk itu, Indonesia AirAsia X dipersilakan mengajukan rencana bisnis terbaru dan mengurus izin rute lagi agar bisa menggunakan rute-rute yang kini dioperasikan oleh Indonesia AirAsia. “Indonesia AirAsia sudah tak berlaku lagi. Sertifikat operator penerbangan juga tinggal satu: Indonesia AirAsia X,” kata dia.

Indonesia AirAsia merupakan satu dari 13 maskapai penerbangan yang ekuitasnya negatif, berdasarkan pemriksaan Kementerian Perhubungan pada Juli 201. Kementerian mengancam akan mencabut izin operasional maskapai-maskapai itu jika ekuitasnya tak bisa positif sampai 30 September 2015.

Saat diminta konfirmasi, Presiden Direktur Indonesia AirAsia Sunu Widiyatmoko tak menjawab. Sementara Chief Executive Officer PT Indonesia AirAsia X Dendy Kurniawan enggan berkomentar banyak. Dia memilih menunggu pengumuman resmi dari Kementerian. “Saya nggak mau mendahului,” kata dia saat dihubungi.

More news coming.

Jakarta. Indonesia AirAsia may merge with sister company Indonesia AirAsia Extra to meet the government's minimum capital rule, according to the Transport Ministry.

Both companies declined to comment on the matter, saying only that they will issue a statement later today.

Indonesia AirAsia Extra is the long haul unit of the Southeast Asia largest budget airline, operating under the trademark AirAsia X.

The Transport Ministry told Indonesia AirAsia to boost its capital to at least Rp 500 billion ($34 million) by Wednesday after it was discovered in July that the airline's assets had dropped to below its outstanding debt.

The detail of merge still not clear.

Big news. IAA merge with IAAX??

Bisnis Lesu, Indonesia AirAsia Bakal Merger

TEMPO.CO, Jakarta - Maskapai penerbangan asal Malaysia, AirAsia Berhad, akan menggabungkan PT Indonesia AirAsia (IAA) dan PT Indonesia AirAsia X menjadi satu entitas perusahaan. Penggabungan itu dilakukan untuk membuat ekuitas Indonesia AirAsia yang sempat negatif jadi positif. “IAA merger dengan adiknya,” kata Direktur Jenderal Perhubungan Udara Kementerian Perhubungan Suprasetyo, Rabu 30 September 2015.

Menurut Suprasetyo, manajemen Indonesia AirAsia sudah mengajukan rencana merger itu dan menjelaskan kondisi perusahaannya kepada pemerintah. Kini Kementerian Perhubungan bersama manajemen AirAsia akan segera memproses rencana merger itu. “Kalau mereka kerja dengan cepat, kami layani dengan cepat,” kata Suprasetyo.

Langkah merger itu disebut untuk menyelamatkan Indonesia AirAsia dari pencabutan izin operasional. Sebab, dengan bergabung bersama AirAsia X, ekuitas Indonesia AirAsia tidak jadi negatif.

Saat diminta konfirmasi, Chief Executive Officer PT Indonesia AirAsia X, Dendy Kurniawan, enggan berkomentar banyak. Dia memilih menunggu pengumuman resmi dari Kementerian. “Saya nggak mau mendahului,” kata dia saat dihubungi.

Sedangkan Presiden Direktur IAA Sunu Widiyatmoko tak menjawab pertanyaan Tempo. Namun pada Agustus lalu, Sunu mengakui perusahaannya meminta toleransi waktu sampai September untuk menambah modal. Sunu yakin AirAsia bisa mendapatkan suntikan modal segar sampai akhir September sesuai tenggat yang diberikan oleh Kementerian. “Sudah ada komitmen dari pemegang saham dalam negeri,” ujarnya saat itu.

Indonesia AirAsia merupakan satu dari tiga belas maskapai penerbangan yang ekuitasnya negatif, berdasarkan hasil pemeriksaan Kementerian Perhubungan pada Juli 2015. Kementerian mengancam akan mencabut izin operasional maskapai-maskapai itu jika ekuitasnya tak bisa positif sampai 30 September 2015.

e commerce company soon for AA

Thanks for sharing.

Thanks firdausAhmad, what is in your opinion the next resistance?

Bring in the IT into AA is good brilliant idea.

US is one of the limited country now enjoying the economic growth.

A good example is US

Technological advances will bring improvement in productivity, economic advancement

AA will soon become 1st low cost airline with advance IT system. Apart from' now every one can fly', it will be omnipresence soon.

oretama, you win or l lose...haha. Doesn't matter we still can have bet later on.

The improvement could put a floor under falling growth in the months ahead. The china economy may not as weak as it look to be.

China financial gauge improves, efforts to relax monetary policy bearing fruit.

No instant payment, deferment on payment is allowed as the bet might continue until AA reach at peak with no fixed deadline.

Then oretama owes me 100AA share huhuhu.

Stay optimistic. Euro stock is ready to recover then follow by US stock. Next day come to KLSE and AA.

Second wave of day of reckoning for AirAsia will be back soon. Don't worry lol.

oretama, let see... the probability you are right is higher than me...^_^