https://www.bloomberg.com/opinion/articles/2020-02-05/airasia-should-worry-about-tony-fernandes-and-anti-corruption-pro

https://klse.i3investor.com/blogs/kianweiaritcles/2020-02-05-story-h1483073503-The_Trouble_With_AirAsia_s_Charismatic_Founder_David_Fickling.jsp

Even before the Airbus settlement, this wasn’t likely to be an easy year for AirAsia. Quite apart from the impact of coronavirus on airlines in Asia, it’s dealing with a switch in accounting rules that’s turning its long-standing practice of making money leasing aircraft to group affiliates from a profit center to a money loser.

***Of its six regional carriers, only the Indonesian one currently has ordinary revenues sufficient to cover its costs.***

For nearly two decades now, Fernandes and Meranun have been central to making sure that every instrument in this sprawling orchestra plays in tune. Shareholders may be about to find out how the music sounds when they’re no longer holding the baton.

This column does not necessarily reflect the opinion of Bloomberg LP and its owners.

___________________________________________________________________



When the party stops, is when the ponzi collapses.

This crisis is possibily the trigger for massive investigation and scrutiny into the accounts of airasia and its executives.

This is what they feared the most...

when people start digging... people will start realising... ... the "emptiness" of the company... with all assets sold... and not much cash left....

how long they can sustain is anyone's guess.

If they dont make it through this.... it could be the next airline failure.... in 2019 .. many LCC failed and collapsed in Europe.....


LCC game of accounting tactics is not easy.... u have to be able to start new company(associates) and make them get new loans to buy planes from the mother company.

When that cycle stops...
The ponI scheme collapses..

If they dont play like this... maybe their average price is rm 1.

Noe they play like this.. trick some to enter at 1.24 to buy from them. Hahahaah....

The big shark now got pants, underwear and kondom



The small fish.. kesian.. kondom also bocor

Even condom also bocor later .. kakakaka

rr88 really salute u. U have the skill and courage to trade in this environment.


This stock is not for investment... is a trading platform... or roulette table.... see which number u buy..... open ur number u win big.

I salute those speculators who dare to enter at 1.13 and sell at 1.24 .

But good luck to those who entered at 1.24 ! Hopefully not with margin.. later kok also cannot stand when underwear gone

Its accounting magic..... still believe the company was making tons of money and having massive cashflow ? The assets had to be sold and leaseback in order to get financing .......

They are running out of cash fast...

https://www.theedgemarkets.com/article/trouble-airasias-charismatic-founder-david-fickling

《Even before the Airbus settlement, this wasn’t likely to be an easy year for AirAsia. Quite apart from the impact of coronavirus on airlines in Asia, it’s dealing with a switch in accounting rules that’s turning its long-standing practice of making money leasing aircraft to group affiliates from a profit center to a money loser. Of its six regional carriers, only the Indonesian one currently has ordinary revenues sufficient to cover its costs.》

A company which makes money , but delay millions of ringgit in payment to MAHB? fishy...

of course when you are Famous and rich, people will get jealous ...

funny why Warren Buffet never made such comments, or even robert kuok, quek leng chan, teh hong piow ... surely people must be jealous of them too!

Thomas Cook: defunct 2019

Wow Air: defunct 2019

Flybmi/British Midland Regional: defunct 2019

Germania: defunct 2019

Primera Air: defunct 2018

Air Berlin: defunct 2017

Monarch Airlines: defunct 2017

https://www.businessinsider.sg/airlines-that-go-out-of-business-2019-3/?r=US&IR=T

https://www.independent.co.uk/travel/news-and-advice/airlines-bankrupt-stop-flying-flight-thomas-cook-flybe-adria-a9242741.html

The virus issue will affect all airline's profits. Even Cathay and Singapore Airlines are not spared from this crisis.

But this crisis will have greater effects on Low Cost airline such as airasia which on itself doesn't generate enough cash flow. This crisis will deplete what's left at a phenomenal rate.

at this point in time,
it's what will last longer, the Virus Crisis, or the airline.

yes, the flu issue does affect all airlines.

Already sold all 100 aircraft and leased back, they didn't keep the cash for emergencies, instead paid out RM1.30 in special dividends.

now with the virus crisis, without any more planes to sell to get cash, with passenger numbers dropping, severely affecting their cash flow... how long can they survive before something happens..........?

A big chunk of their income comes from leasing aircrafts to their associates, Thai AirAsia, Indonesia AirAsia, Philipines AirAsia, Japan AirAsia ....... This crisis affects AirAsia as a whole.. and without assets to sell to get cash to survive, how long can they last?

AAX IPO RM1.20 , Today RM 0.115

How low can AirAsia Go?

another lemon in investment...... london biscuits reported increase revenue every year tooo...those who chased it had been burnt badly.

AirAsia makes good "profit", but certain things they do doesn't make sense, and also nobody in this forum could give an explanation...

if something doesn't make sense to you, it probably never will, because there is simply no sense.
don't try too hard to convince yourself. All you need to do is see the obvious.

JJPTR - does it make sense?

the Dividends before the placement was 3 cents in 2015, 4 cents in 2016, what a high yielding stock!

eversince the private placement @ Rm1.80

the dividends increased to
24 cents in 2017
12 cents in 2018
40 cents special dividend in 2018
12 cents in 2019
90 cents special dividend in 2019

Total RM 1.78.

we can clearly see that the dividends pre-2017 before the placement were almost non-existent.

https://karryon.com.au/knowledge/how-does-a-budget-airline-like-air-asia-actually-make-its-money/

Why sell-and-leaseback 100 aircraft if the cash flow is healthy?



Below is an extract the taken from themalaysianreserve.com website regarding the findings of GMT research back in 2015.

-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=--=
"https://themalaysianreserve.com/2017/03/31/someone-stole-our-airasia-report-says-gmt-research/"

[The damning details in the GMT report include the fact that over the past six years, AirAsia had inflated profits by some RM1.1 billion, which it obtained through leasing (RM603 million) and selling aircraft (RM466 million) to its associates — though analysts say the report’s data are nothing new.

GMT said AirAsia would need to raise RM7 billion in fresh equity — even before addressing the indebtedness of its associates — and place a target price of RM1.20 per AirAsia share, advising investors to sell or short the stock.
_____________________________________________________________________________

Tulloch said AirAsia needs to provide full disclosure, including the activities of its affiliates like Tune Group Sdn Bhd.

Tune Group has been selling down its stake in AirAsia for some time, which Tulloch said he suspects “is being used to fund Tony’s Formula One team and the football team (Queen’s Park Rangers)”.

“When doing our research, it became clear that AirAsia makes more money leasing aircraft than flying people around Asia,” he said. “Not many airlines have a complicated structure like AirAsia.”]

Epf disposed before the news became public....

From 28-30th jan, according to the annoucements , EPF disposed 10,990,400 shares.

A few days later when EPF will annouce their disposal for 03-04 feb.. ...

Stay tuned... sit back relax and enjoy the drama.....

This is airasia's worst nightmare..... the more you dig... the more worm cans you can find.. all hidden....... i assure you... a lot of worms will be unearthed .......

Ask how many employees are happy..... ..

GMT research already warned you all in 2015 ....

It cant be a coincidence......

Angin tak kuat, ombak tak naik,

Ombak tak naik, kapal tak terbalik.....

I hope no one trades on margin..... if not.... underwear pun hilang!

Dont be distracted by the Special Dividend.. special dividend... as the name suggest... is just special dividend and are not meant to be repeated. Moreover.. the special dividends were paid out by dismantling the company through sales of asset.

Total dividends paid out is RM2.21 - RM 1.30(special dividend) is only RM 0.91.

How do you know the business is good and has sound fundamental ? From the Annual Reports?

Can You trust the annual report if the integrity of its top managements are being questioned?

How does sale and leaseback benefit the company ? Can You Cut Coss By Leasing Lesser Aircraft and Breaching your Lease Contract if the demand drops?

Good companies like Hartalega, Padini, PBBank, price already increase multiple folds since IPO.

This counter also increase multiple fold?

Many people refused to acknowledge that the dividends came from dismantling of the airline by selling assets and not from continuosly positive cashflow........

Also many fail to see the fact that there is virtually no dividends before 2016(before the private placement @1.80 with loan)

Ask yourself WHY? Keep asking..

All Malaysians who has epf are affected... ..

Epf owns about 6% of AirAsia.. and because of this .. the shares dropped in value .. affecting the wealth of all EPF contributor.

I kasi u ticket murah, nanti I collect dari EPF ya...... kau ingat u pandai ke dapat ticket murah rm 0.99, i lagi bijak. No free lunch

无风不起浪，无浪不翻船。。。。。。。。。

好戏刚开始呢。。。。。

the next financial crisis may wipe out AirAsia totally.

Most of its passenger profile are big consumers of debts, who finances their travel on AirAsia with Debt.

the existence of airasia has persuaded many people that "travel" is a necessity and that the "cheap" ticket price is affordable with credit card "debt" . the result is more and more young people who cannot afford to travel pushed themself to travel with debt.
When the next economic crisis hits, these people will no longer be able to finance their travel via debt. unable to meet their debt obligation (property prices are already falling, and there is no buyer at the moment) ....

It will trigger a big domino effect.

The companies which are highly leveraged, and dependant on pre-sales will be severely affected.

Before the RM0.90 Special Dividend, the price was RM2.70.

after the special dividend of RM 0.90 , price dropped to RM 1.80 and never recovered since.

If the company has assets and good cash flow like what some of you claim.... then the investors must be blind to not realize that the company is worth RM 3, or RM6 or RM100 .

now.. the integrity of the major shareholder is doubtful, can the accounts be trusted?

will a healthy company that is generating stable cashflow from it's "Assets" of 100 aircraft sell them off and leaseback at a higher rate, and distribute the sales proceeds? why not use the cash for something else?

Transforming to asset light business ? Ask yourself this.....

If sign a lease of 100 aircrafts until 2040....

In 2024 , you realise the market is weak and you only require 50 aircraft . Can you tell your lessor... sorry , i will only lease 50 aircraft for 2024, lets sign a new contract ?

When u cannot explain certain move by the major shareholder, you should start asking why... and not follow blindly

Dont worry... all is well....they may not be able to secure financing for further expansion...

But, All is well! TP rm100

If the integrity of a leader is in question..... you should be worried....

Never ever invest in a company if their executive's integrity is doubtful.........

That one of the main criteria that warren buffet and other big superinvestor looks at...

That partially explains why 100 aircraft was sold and leaseback.

If not how to cash out? Good luck fellow devoters, 2020 will be the best year ever!

every single evidence is suggesting that airasia is overvalued, and the owners knew this and stripped the company of its assets to cash out.

TF also said that AAX will have the best year in 2019. kakakaka... boleh percaya ka?>

Virus come and go.....

But bad business stays...

This is obviously a bailout for fellow kronies.

RM 8 Bil to Bailout Airasia and AAX Bhd.

While the major shareholdet already stripped the company clean by selling aircraft and
Paying ownself a big special dividend.

Have you all forgotten about the aircraft painted in Blue with the words Hebatkan Negaraku?

U guys are dealing with a big kroni here.

https://focusmalaysia.my/mainstr/airasias-takeover-of-malaysia-airlines-may-cost-khazanah-over-rm8-bil/

Can't Believe some holders/speculators are still holding on, hoping for another round of special dividend..........................................

The special dividend wasn't paid from operating profits or cash-flow, it was merely paid by another form of "refinancing" or "loan".

hang on tight, !!
i think more dividends coming in Year 2020, at least RM1.65 dividend!!!!

Only Tony himself knows whats really going on inside.
That may be the reason he is pushing for BigPay , Santan etc etc ...

One thing for sure, its about his best interest... and not ikan bilis..

My cheap opinion, Sale And Leaseback is a form of non-transparent financing/loan.... not exactly going asset light.... they need the planes, but at the same time are running short of cash.... the sale and leaseback is to buy time by temporarily increasing their cash flow from the proceeds of which they will need to pay back to the lessor slowly. How they utilize this proceeds will determine their survival. But of course, by paying the special dividends, they already washed their hands clean. Ikan bilis who chase the stock at rm 3 are the ones who suffers.

The other businesses will not work without the airline operations

Looks like even their sister company may be having cash flow issues......

resulting in them "refinancing" the aircraft...

Don't Worry, there is many more so called "assets" to sell, to keep paying unrealistically high dividend.

Can sell and leaseback Red-Q (HQ) also.

kakaka... already received RM1.9 billion in dividends and special dividends from the sales of aircraft.

after repaying the RM1 billion loan for the private placement, both of them still pocketed about RM450 million CASH ,each.

i don't think they care about retail investors.

i don't fully understand teleport and it's potential.

may i know how to differentiate TELEPORT.social from Shopee or Lazada, or Taobao?

I can purchase from shopee or lazada , and receive my goods within 4 days if ready stock is available. I can now order direct from Taobao and have it shipped directly to KL for 10 ringgit or less for a small item.

What is the moat of Teleport? other than helping AirAsia filling up their plane's cargo capacity?

dear ikan bilis,enjoy the show!

while big shark already cashed out billions by dismantling the company....

I just walked into Santan,

Its saturday and its 8.30pm ....

there is no queue at santan, counter is empty

Madam Kwan is much more expensive than santan.... and yet there is a very long queue.

McDonalds has long queue as well......

Dont put your hopes too high.

From operations alone, it is difficult for them to even pay a low RM0.10 dividend per share.

TF exited the private placement @rm1.80 by paying special dividend from selling assets.

Now there is no more incentive to repeat the high dividend payment.

it's a data collection front. Tony already has enough data about your flying habits, now he wants to know you eating and drinking habits. you meal preference, your drinks preference... it's the data that's worth a lot of money. not the santan business itself.

Do you all know that the popcorn foodhall offers same food with better taste and cheaper price?

if price is all that matters... why go to santan? why not the foodcourt?

mixed/economy rice with lots of side dishes at RM12?

From RM2.70 dropped to RM1.80 after the special dividend.. and continue dropping.

Why did people not see the potential in such a good share ?

It should climb back up towards rm2.70 if there was real intrinsic value.

The only thing missing in this QR's EBITDA is the aircraft lease expenses. Which partly explains why the EBITDA shot up by so much

The previous QR , Aircraft Operating Lease expenses affects the EBITDA . This QR , the aircraft lease expenses was actually moved to depreciation of rights of use of assets.

So in other words , it went up because of MRFS16 ? The aircraft lease expenses was 289 mil in 2018.

In 2019 , that expenses of 443 mil was renamed to depreciation of rights of use of assets.

Looks like EBITDA didnt change much.