F.Tony better hurry, no time for kissing a virgin. Fund are flow in fast aftef Icon8888 articles, Pplane will only getting red eyes without doing anything.
Once purchased All Expensive Planes start depreciating & depreciating. So the logic is the get as much revenue as possible. Then in a crowded market all airlines try to capture market share on lower and lower and even giving FREE SEATS.
There is NO Pricing Power.
So high cost and low profit UNLESS you overload the plane and over work the pilots. Then?
Then due to fatigue 3 planes were lost (2 MAS & One Airasia)
icon, for oil percentage of oil aax n AA is better if u compare under barrel per ask, it was bcoz AA n AAx having very dufeerent position on oil hedge, AAX oil having larger percentage on ocst, so AAX benefit more under low oil price compare to AA. very informatic and detail analysis anyway, alwats appreciate your contribution on this forum.
AAX's competitor is not Malindo, they are Singapore Airlines, Brunei Airlines, BA, Qantas, Cathay, everyone is tough.
By the way, icon can you write something else other than Lucy and Ann? Appreciation of Ringgit must have benefit many other importers, USD debtors, etc.
You know, last wave i sold AA 3 weeks before the crash, now just happy to stay on ground.
I bought both too. Here is my bad comment on airasia and AAX.
1)My concern on the revenue. The drop in USD means the revenue in USD also drop (if sell to foreigner, but no impact on the sales to local people).
2) Another concern is diluted in EPS, with the capital injection, the earning per share will be diluted.
However, there is some good point to buy airasia and aax.
1) Cost also drop (oil consumption). But loan in USD and interest expenses will be significant reduced.
2) Another concern is the capital injection. Other than the reduction in interest expenses, i do not see any positive contribution to EPS as they also used part of the money to build airasia headquarter. This will increase depreciation expenses for Airasia.
3) Tony Fernandes "sai lang" mean he is confident with Airasia.
Conclusion, I rather this proposal did not happened as it will only bring interest saving of RM10mil, which is less than EPS 1sen. But the impact of dilution is huge for minority shareholders
Which airline will do well will depend on how AAX can sort out its operating margin. Currently operating margins in AAX is 2%, AirAsia is 18%. Even a Greek airline like Aegean airline can do 10%. AAX and Airasia need to follow the Ryanair model and its achievement of 41% operating margin. All Tony needs to do is to look for a clever CFO who understands Connectivity,Routes (& Airline Freedoms of the Air) and Margins. When AAX can achieve ave 15% operating margin, then it will be a 1 Ringgit share price.
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Posted by Koon Bee > 2016-04-03 14:07 | Report Abuse
Icon, thumb up!! Another great article...we need more writer like icon in i3!!