Sweet dreams....

Airlines in Asia have resumed flying and in an interview last month, he said the airline is confident its business will continue to survive, given the efforts already undertaken to raise cash and to cut costs, more importantly to see its cash expenses drop by 50% this year.

With revenue now up and costs being cut, the airline’s cash burn rate will lessen and it is also seeing major improvements in its digital businesses that has seen big jumps in activity since the MCO.

“Our logistics model through Teleport is doing really good. We have permission now to use our passenger planes to carry cargo, which means we are operating almost 60% as a freighter. That is a growing business and we are now trying to look at land logistics to supplement our air logistics and no one can match our network. Teleport is very valuable, he said in the interview.

“We have built a nice e-commerce and food platform business. The thesis of our digital business is that you convert your big database into other products. It is predicated by Big Points, which is now the largest Asean points provider.

“Our digital is split into travel and we are now doing a massive deal with a massive airline and that is going to prove the thesis. It is a global brand and they want to be on AirAsia’s platform to sell their products. Because of Covid, we will catch up with Expedia and the other brands in terms of hotel supply.

“What we built in three months we could never do in normal time. We had three months of doing nothing and that enabled us to rethink our whole digital strategy and build it up and really focus on it. What would have been done in 18 months was done in three months. We didn’t waste the time, ” he said.

Cargo operations are said to be enjoying robust business and load factors are up to 70% but without travel being opened to international destinations, AirAsia will not be able to make a profit by just relying on domestic routes.

According to the latest set of results, AirAsia swung in the red in the first quarter to the tune of RM803.85mil. For the first time in many years, the LCC recorded a negative earnings before interest, tax, depreciation and amortisation (EBITDA).

AirAsia’s EBITDA was in deficit of RM28.5mil compared to a healthy RM525.6mil in the corresponding period a year ago. The biggest expense items are staff cost, fuel cost and maintenance and overhaul cost.

AirAsia still has RM1.6bil in its kitty to run its operations. However it would not be enough to see through the operations in the difficult times and the RM1bil cash injection is expected to help it through next year.

“The RM1bil in financing is what the major shareholders of AirAsia were looking for to tide over the tough times. It should be sufficient for now, ” says a source.

AirAsia Group Bhd, Asia’s leading low cost carrier (LCC), has secured financing to the tune of RM1bil that will give it the much needed cash flow to survive the turbulent times of the industry.

Sources say a consortium of local banks has put together the financing package that the LCC can withdraw over time. It will now seek a guarantee from Danajamin for 80% of the loan. Drawdown on the loan is contingent upon AirAsia flying to international destinations. The hope is that travel bubbles will be initiated in stages to destinations in Asia, with Singapore set to be the first stop.

“The money should be enough for now for AirAsia to tide over the turbulent times that the airline industry is going through due to the Coronavirus pandemic. It is also the first major loan that is being disbursed via the Danajamin loan guarantee scheme, ” says a source.

AirAsia is the leading LCC in Asia with its reach stretching up to China. Due to the Covid-19 pandemic, it was forced to shut down the operations for almost a month in April. The LCC resumed operations in May by flying mainly domestic routes. Passenger bookings, flight frequencies and load factors are gradually improving

AirAsia going to fly higher in the coming weeks. Those who still daydreaming could continue to do so while the shareholders of AirAsia would be enjoying their investment especially to those who bought at around current prices. 1.00 is not a dream.

Many kiasi small fish still dreaming of 30 cents or even 50 cents.... sweet dreams

Sailang now...kiasi ikan bilis better stay sidelines because your target 1 cent is coming soon.

Sailang now...kiasi ikan bilis better stay sidelines because your target 40 cents is coming soon.

Sell now easily get few thousand profit

Many kiasu ikan bilis kicking themselves now

wow...AAX 1 cent done !!! many still daydreaming... sweet dreams

wow...50 cents done !!! many still daydreaming

I'm on the same mission too

pharker Actually I am looking for a stock to buy fitting the criteria :-

1. Worst impact by covid 19...almost go bankrupt but did not, too big to fail, hence share price hit rock bottom during pandemic, almost died but hang on
2. Once vaccine developed, just a matter of time given the huge resources poured in and the enormous market potential and profit given the extent of this pandemic, the stock will rebound like crazy

1 and 2 meaning a very sharp V-shaped recovery stock, for max bagger gain

The one famous classic example is Citigroup during the housing bubble crisis..almost went bankrupt and my uncle bought it at ridiculous USD 0.40 and when rebounded, he enjoyed an early retirement from his mundane 9 to 5 job.

May be I found one today, not as fierce as Citigroup, but maybe a good smaller scale proxy to its story.

I'm on the same mission too

pharker Actually I am looking for a stock to buy fitting the criteria :-

1. Worst impact by covid 19...almost go bankrupt but did not, too big to fail, hence share price hit rock bottom during pandemic, almost died but hang on
2. Once vaccine developed, just a matter of time given the huge resources poured in and the enormous market potential and profit given the extent of this pandemic, the stock will rebound like crazy

1 and 2 meaning a very sharp V-shaped recovery stock, for max bagger gain

The one famous classic example is Citigroup during the housing bubble crisis..almost went bankrupt and my uncle bought it at ridiculous USD 0.40 and when rebounded, he enjoyed an early retirement from his mundane 9 to 5 job.

May be I found one today, not as fierce as Citigroup, but maybe a good smaller scale proxy to its story.

CGS-CIMB are in big trouble soon... millions of lawsuit by AAX investors waiting for them for their untrue report about AAX share prices.

CGS-CIMB are in big trouble soon... millions of lawsuit by AAX investors waiting for them for their untrue report about AAX share prices.

CGS-CIMB going to close shop soon after failed miserably on their prediction on AAX. Those who think AAX and Airasia will close shop sooner than CGS-CIMB are too dumb to believe them. Let's see who close shop first.

CGS-CIMB going to close shop soon after failed miserably on their prediction on AAX. Those who think AAX and Airasia will close shop sooner than CGS-CIMB are too dumb to believe them. Let's see who close shop first.

In future which airlines going to fly you to your destination without AAX and AirAsia ? MAS ? Malindo ? MAS and Malindo also facing the same problem la...Next time Malaysian just stay at home, no planes going to bring you to your destination. Even you use other airlines, the fares that you going to pay is definitely beyond your imagination because of no competition from low cost airlines, all closed shop already.

In future which airlines going to fly you to your destination without AAX and AirAsia ? MAS ? Malindo ? MAS and Malindo also facing the same problem la...Next time Malaysian just stay at home, no planes going to bring you to your destination. Even you use other airlines, the fares that you going to pay is definitely beyond your imagination because of no competition from low cost airlines, all closed shop already.

Sailang the Big4 as well as smaller glove stocks. Millions of profit in hand. Cheers !

Do you think MAS could be able to handle all the flights by themselves ? MAS already in the red for so many years since the time Renong and UEM. MAS if not because of gomen pumping billions into it, MAS should already became an embarrassment to the nation long time ago.

Do you think MAS could be able to handle all the flights by themselves ? MAS already in the red for so many years since the time Renong and UEM. MAS if not because of gomen pumping billions into it, MAS should already became an embarrassment to the nation long time ago.

Number of new cases in US - on its way down. Here the so called famous bloggers/sharks won't show you this news, only if cases increased a lot then they will widely publicise the news.

https://www.wsj.com/articles/coronavirus-latest-news-08-04-2020-11596531332

When ppl too fearful it means it's about time to collect especially company as big as AirAsia and AAX and also a very important entity to the nation. Valued investors will surely not going to let this golden opportunity evaporated just like that especially investors could buy over the company at a much cheaper price.

Number of new cases in US - on its way down. Here the so called famous bloggers/sharks won't show you this news, only if cases increased a lot then they will widely publicise the news.

https://www.wsj.com/articles/coronavirus-latest-news-08-04-2020-11596531332

When ppl too fearful it means it's about time to collect especially company as big as AirAsia and also a very important entity to the nation. Valued investors will surely not going to let this golden opportunity evaporated just like that especially investors could buy over the company at a much cheaper price.

Good time to buy cheap.... sailang !!!

Good time to buy cheap.... sailang !!!

Good time to buy cheap...sailang !!!

When analysts said bad thing about a company, it means this is the best time to buy especially company as important and as big as AAX and AirAsia.

Jinglebell everyday dreaming too much, no wonder never making any money in share trading.

Seems light on the tunnel soon with vaccine against covid-19 widely available.... opportunity to collect Airasia and AAX at their lowest. Once in a lifetime chance to collect cheap cheap airline stocks.

Seems light on the tunnel soon with vaccine against covid-19 widely available.... opportunity to collect Airasia and AAX at their lowest. Once in a lifetime chance to collect cheap cheap airline stocks.

Never trust China company listed here in bursa...why they don't want to be listed in Shanghai or Shenzhen bourses ? Not qualified surely.

For gomen schools and universities

Going to get online teaching contract from gomen soon... ready to fly

Mask factor already price in last week...need another astonishing news to lift up EG again... ask I_B, he knew more than we know

Copper deal may be another wayang from the infamous Harvest Court... just using new name to trick small fish again ??

Still can't believed so many small fish still hoping to get rich with this company... you're conned again !

Anzo proved itself again...never trust this company

5 cents coming...runnnn !

Didn't buy any bornoil but everyday talk 3 talk 4 here... part of huge profit already in the bank. CHEERS !

The writer daydream too much !

Rubbish article

wow...so many if...if...if...If i were a trillionaire, I will buy all the vaccines produced and give it free to everyone !!

No action yet...as expected

Are you sure Tobby ?? LGE is blessed by tokong, he's not like you money face.

Mungkin akhir thn ada show sbb vaccine pertama di pasaran....sabar

Buy the warrants if you dared... maybe could fly to 3 cents