From Annual Report 2015:

(e) Property, plant and equipment (continued)
The useful lives for this purpose are as follows:
Aircraft
- engines and airframe excluding service potential ________ 25 years
- service potential of engines and airframe ______________ 8 or 13 years
Aircraft spares ____________________________________ 10 years
Aircraft fixtures and fittings ___________________________Useful life of aircraft or remaining
__________________________________________lease term of aircraft, whichever is shorter

Buildings
- simulator _________________ 28.75 years
- hangar ___________________ 50 years

Motor vehicles ______________________5 years
Office equipment, furniture and fittings ___5 years
Office renovation ____________________5 years
Simulator equipment _________________25 years
Operating plant and ground equipment ___5 years
In-flight equipment ___________________5 years
Training equipment __________________5 years

batu88, from annual report, this is what depreciation look like:

A. Receive new aircraft & new engine : depreciate the fair value in 25 years
B. At age 8, overhaul the engine and depreciate the cost for next 8 years
C. At age 13, do a heavy check on aircraft's structure, depreciate the cost for next 13 years
D. At age 16, overhaul the engine again and depreciate it for next 8 years
At age 25, all cost depreciated.

Above mean like this:
From age 0 to end of age 7, depreciate A only
From age 8 to end of age 12, depreciate A & B,
From age 13 to end of age 15, depreciate A & B & C (B fully depreciated at end age 15)
From age 16 to end of age 25, depreciate A & C & D (all of them fully depreciated at end age 25)

Do note this is depreciation of asset value, not loan repayment. Loan repayment itself is a cash flow item, not balance sheet item. The loan repayment period is 14 years while asset depreciate for 25 years (its useful life)

Also, depreciation rate also different. AirAsia depreciate it in 25 years with 10% residual value, while some depreciate it in 20 years with no residual value. See page 14 of this https://www.iata.org/publications/Documents/Airline-Disclosure-Guide-aircraft-acquisition.pdf

Weng, AirAsia use a full A320 fleet, which list price is around 100m usd, while quite a lot of airline operate much bigger wide body airliner, which pricetag could be more than 230m usd.
If u operate A380, pricetag is 430m usd

AP, the answer is here:
https://www.credit-suisse.com/media/assets/microsite/docs/aic/presentations/2017/airasia.pdf

ignissimia, AP is in auto posting mode, he not going to see your reply, haha

AP, that's not math, haha
AAHK is difficult, to setup airline there, majority of local airlines must agree (weirdest rule I ever heard)

YES!!!
Finally come, AirAsia is setting up AirAsia Vietnam

are we going to have AirAsia Vietnam?
https://twitter.com/tonyfernandes/status/847441466079158273

I would be happy too if no dividend (share price will take a hit) as that mean all proceed could use for operation or buy new aircrafts (1b USD enough for down payment of 100+ aircrafts). That give very huge support to get through the next round of competition & consolidation.

batu, TFKM must has borrowed zero interest loan from UOB, that's why UOB's analyst think dividend to TFKM is secondary, haha

Dividend is likely to be announced on 21/24 April, probably together with outcome of AAC's sale.
3 out of past 4 years dividends are announced on 22~24 April, except for last year which announced in 1 April together with TFKM's PP.

In TF's slide, they said "SPA & SSA execution to start 4 April 2017". My 2 sens is they would complete the evaluation on all bid by then and choose the preferred bidder in binding bid. It's unlikely to sign SPA & SSA 2 week into closing of bidding, as it would take quite some time to work on a detail comparison table and also to ask for clarification/more detail from bidders. From 7 April to 21/24 April is 2 weeks, should be sufficient to work out the result as 1) bidders already have first round of due-diligent and 2) AAC is quite young and their business is quite simple so wouldn't take too long time.

Supersaiyan3, this is what I read:
Issuers have their expected dividend in mind when they issue warrant.
If they already expect 9sen, then warrant price will adjust by only 1sen.

I wonder what happened in Malindo. They suppose to be in crazy expansion mode, but now they further cut their route.

Malindo Air in summer 2017 season is adjusting services on selected international routes, resulting in frequency cuts. Affected routes as follow.

Kuala Lumpur – Chiang Mai eff 18APR17 1 daily service cancelled
Kuala Lumpur – Kochi eff 15MAY17 Reduce from 11 to 7 weekly
Kuala Lumpur – Lahore eff 03APR17 Reduce from 7 to 5 weekly. Further changes to operational aircraft sees 737-800 replacing -900ER from 02NOV17

If they sign SPA, that mean at same day AA must disclose to Bursa right?

Batu, see u there.
A lot of thing to ask TF

Not cancelled, it's suspended

I am looking at Malindo's twitter.
They have cancelled their KL to Miri & JB flights, good news

30 days to go, should be ok. the dividend risk may be quite worrying, as they could claim the dividend from AAC is more than they expected.

kyou, 3.145, not impossible

batu, i wonder how much return you have make, as C-38 could only contribute 1.5% when you make 0.035 profit per warrant, haha

5. Cebu Pacific would not follow AirAsia/Lion Air/Jetstar's strategy to pursue oversea JV.

The only news is not so good news: Qatar will enter Indian market and compete with local airlines include AirAsia India.
some old news:
1. Cebu Pacific will expand by 2~3 aircrafts this year, so limited competition for PAA.
2. Lion Air will resume expansion this year while Citilink will continue their 20% ++ ASK expansion, so there might be some squeeze in IAA's bottom line.
3. How good is India market growth? 3 years ago IndiGo's ASK is same with MAA, today it's 25% more than MAA.
4. Among major LCCs in Malaysia, Indonesia, Thailand, Philippines and India who report their financial status, Malaysia AirAsia has the lower RASK (FY2016), but it's constantly top three most profitable airline. (Source: Valuegrowth's cincai oh bek luan lai research house)

That's back to the square it made 4 years back

https://twitter.com/tonyfernandes/status/846663108084940800

Let see his lot to tell include AAC's bid bo

Nobody can tahan BWC'S shameless. We should ignore him now, spoil our mood.

Hahaha, didn't noticed I say 2.06.
Yes, 3.06

RM, it close at 2.06

How many time have big picture change? BWC, I am totally out of count, could be hundreds if it isn't thousands

人家看不懂

Supersaiyan3,你寫得太深了啦

油價高美元就一定貶？？今天美元貶值油價跌得更慘，怎麼和你說的不一樣呢？
想要貶低人，你還需要好好加油

我就奇怪怎麼有人寫這樣無厘頭的東西，原來你就是痛恨亞航的朱冠華，哈哈。

feisch, u know too much....

Damn it... typed so many word and it just disappeared

Pls correct me if I am wrong

mmk79, do you have any link of Nomura research paper?
thanks

feisch, you got point about associates. Hopefully we could have Open Skies and single entity soon

How is Bikini airline fare against AirAsia? AirAsia's operational profitability (RASK - CASK) is 3 times more than Vietjet. (see page 3)
https://www.tvs.vn/images/2014/document/company%20reports/2016/T12/TVS_VietjetAir_AFlightYouCantMiss_FlashNotes_21Dec16.pdf

lol, so you mean Ryanair (382+ aircrafts), Southwest (600+), easyjet(240+), American (1000+), Delta(800+) are small companies because they report monthly?
The good thing of reporting montly is we get updated every month instead of worrying for 3 months. Do you want to get updated monthly or quarterly haha

(btw, AirAsia didn't report monthly for last 10 years....)

Yes, AirAsia is very efficient, look at this:
https://centreforaviation.com/images/stories/Airline_Leader/Issue_25/CASK/graph1.png
AAX & AirAsia are the lowest 2. (AAX has lower CASK due to trip length & they are using more efficient widebody)

Timothy, AirAsia only report RASK & CASK in quarterly financial report, not quarterly Operating Statistic report.
This is monthly Op Stat report from Garuda, not quarterly. AirAsia doesn't issue monthly op stat report.

Look at this, Garuda Indonesia disclose their Operating statistic together with their CASK & yield, which actually telling their financial performance. Would AirAsia do this one day? haha

https://www.garuda-indonesia.com/files/pdf/investor-relations/monthly-operating-data/Inner_Features-January_2017.pdf

out of topic, are you the same guy know as felicity?

If #1, that mean the actual valuation is 900m + 869m debt, total 1.8b

or maybe this way:
1. buyer pay 900m + take all associated debt,
2. buyer pay total 900m (debt + cash), or
3. buyer pay 900m cash but take no debt (not reasonable as this is like fire sale rate, which isn't this case)

erm, are ur "including" & "excluding" mean the opposite?

feisch, what would you think about 900M? is this figure include debt or exclude debt?

lms, I don't doubt Chinese abilities in economy term and their huge potential.
However, history has show that political decision is the utmost critical factor when come to some incident and in turn it affect the economical operation. e.g: Philippines during previous standoff in Scarborough shoal, Taiwan when Tsai became president and Korea during THAAD mobilisation. In all case, China has decided that Chinese shall not travel to those countries and all airlines suffer.

In airline operation, they would need to secure air operation right before flying to a destination with certain frequency. Although some minor adjustment to frequency is possible, but it's would not happen in big scale. When Chinese airlines cancelled their Korea flights, it's not that they could just fly to other locations, a lot of them would be just grounded and keep paying rental and fixed operation fee.

Enter into China as local airline isn't as rewardful as it see, the cut-throat competition is everywhere and so many aircrafts have to squeeze in very limited civilian space (a substantiate airspace in China is limited to military operation).

With so many associated risks, China is not that good as it see. If you notice, you could see ASEAN AirAsias is trying to diversified their market so that wouldn't get severely hurt when some political event outbreak.

In SEA & India, government couldn't just do whatever they wish to and airline's decision must be respected. Just like we have so many argument with Indonesia, but does AirAsia, MAS, Lion Air need to ground their aircraft?

out of topic:
Do take note that all my viewpoint is against Chinese government and not Chinese citizen or companies. I am upset with Chinese government doesn't allow their citizen to travel as they wish. For us in general case, we could travel oversea without prior agreement from Malaysia government, but that's not the case for Chinese citizen. take a look on this article from Chinese government's media: http://www.globaltimes.cn/content/825056.shtml

Feisch, seem like not 100% stake.
"KOTAM and AirAsia are negotiating final terms of the purchase of a majority stake in the leasing unit, one of the sources said. "